Business Reorganization

An order disallowing a claim didn’t really mean the claim was disallowed.

A nationwide class action for a stay violation seems to be an open issue.

President’s Column This, my final President’s Column, is all about moments. They come in all sorts of shapes and sizes. One of my favorite expressions from listening to the radio is a “driveway moment.” In the context of car radios, it’s when you’ve already pulled into

Senators Reintroduce Legislation to Hold Executives Accountable After Big Bank Failures Sens. Elizabeth Warren (D-Mass.), Josh Hawley (R-Mo.), Catherine Cortez Masto (D-Nev.), Ruben Gallego (D-Ariz.), Katie Britt (R-Ala.) and nine additional Senators on March 11 1

By excluding payments by the debtor directly to secured creditors from the calculation of the standing trustee’s fee, the recovery increased for unsecured creditors in chapter 12.

Congress Passes “Bankruptcy Administration Improvement Act” The House of Representatives passed (voice vote) S. 3424, the “Bankruptcy Administration Improvement Act of 2025,” 1 to double the compensation payable to chapter 7 trustees in no-asset cases, extend the sunset

Supreme Court will decide whether potential motive for nondisclosure invokes judicial estoppel, or whether there must be subjective intent by the debtor to conceal.

The Ninth Circuit hasn’t decided whether bankruptcy courts are ‘courts of the U.S.’ authorized to exercise powers under the All Writs Act, 28 U.S.C. § 1651(a).

Although it makes sense and would require fewer judicial resources, the governing statute does not permit withdrawing a lawsuit directly to the bankruptcy court in another district or another state, as explained by Bankruptcy Judge Elisabetta G.M. Gasparini of Columbia, S.C.

The corporate debtor filed a voluntary chapter 7 petition in South Carolina. Two days later, someone (whom we shall refer to as the plaintiff) filed a lawsuit in federal district court in Georgia against several of the debtor’s insiders and a nondebtor corporate affiliate of the debtor. The debtor was not named as a defendant in the Georgia action.

The debtor and the nondebtor defendants in Georgia filed a notice of removal. As Judge Gasparini said in her December 16 opinion, they “purportedly remov[ed] the matter from the Georgia District Court to this Court [i.e., the bankruptcy court in the District of South Carolina].”

Delaware’s Bankruptcy Judge Horan gives examples of preference complaints that adequately plead performance of due diligence.