Consumer Bankruptcy

Debtors May Wind Up Operations in Chapter 12 and Farm Through LLCs

Judge Somers wrote two opinions on debtors’ eligibility to reorganize in chapter 12.

Status Conferences to Continue Prepetition State Court Suits Don’t Violate the Stay

The Ninth Circuit B.A.P. says that the automatic stay does not require dismissal of prepetition lawsuits against debtors.
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Three-Year Bar to Refiling in Chapter 13 Imposed for ‘Vexatious, Frivolous’ Litigation

Motions to recuse three bankruptcy judges fortified the third judge’s decision to dismiss and bar refiling for three years.

Bar Date Notice by Email Is Insufficient, Delaware’s Judge Goldblatt Says

Notice by email may satisfy due process but doesn’t comply with notice by ‘mail’ under Bankruptcy Rule 2002.

Barton Didn’t Stop Creditors from Garnishing a Chapter 13 Trustee After Dismissal

The debtor’s bad faith chapter 13 filings convinced Judge Hall to allow garnishment of funds held by the trustee after dismissal.

Disclosing a Lawsuit Only in the SOFA Won’t Result in Abandonment, Circuit Says

Disclosing a lawsuit in the SOFA and discussing the suit with the trustee was no substitute for listing the suit among a debtor’s assets, the Ninth Circuit held.
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Error | ABI

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