Business Reorganization

9th Circuit Jun 1, 2020

Ninth Circuit Narrowly Reads Section 506(d) on Voiding Liens After Claim Disallowance

A claim must be disallowed based on the invalidity of the debt before the associated lien can be voided under Section 506(d), the Ninth Circuit ruled in upholding the BAP.
10th Circuit Utah May 19, 2020

District Judge Rejects the Majority’s ‘Gotcha’ Approach to Automatic Abandonment

Sufficiently listing an asset anywhere in the schedules and SOFA will result in abandonment if the asset was not administered by the trustee, Utah district judge holds.
1st Circuit May 21, 2020

BAP Didn’t See Barnhill as Prescribing the Date of Transfer from a Retirement Account

The First Circuit BAP evidently believes that a transfer occurred, even though an ordinary check wasn’t cashed.
6th Circuit May 11, 2020

‘Snapshot’ Rule for Valuation Doesn’t Apply to Compelling Abandonment, Circuit Says

Equity in property at the time of a hearing, not at filing, decides whether the court should compel abandonment, Sixth Circuit says.
11th Circuit May 1, 2020

Executory Contract Was Deemed Rejected Even Though Not Scheduled as Executory

For the Eleventh Circuit, scheduling the unsecured claim resulted in automatic rejection even though the contract was not scheduled as executory.

May a Bankruptcy Court Annul the Automatic Stay after Acevedo?

Bankruptcy Judge Grossman explores the extent to which the Supreme Court’s Acevedo decision bars courts from granting relief retroactively.

Two-Year Statute for Avoidance Actions Doesn’t Apply to Claim Objections

Even if the two-year statute of limitations for avoidance actions has run, the trustee can still strip away the lender’s secured status in a claim objection.