Rochelle's Daily Wire

With an exception, cases after Purdue are pointing toward approval of nondebtor releases where creditors are only allowed to opt out.

An involuntary petitioner whose claim was paid after filing is still counted as an involuntary petitioner, the Ninth Circuit BAP says.

Despite Section 1325(a)(5)(B), an auto lender was entitled to retain a lien when there were co-debtors.

Arbitration was denied over a trustee’s claim objection based on the lender’s violation of state usury laws.

Alter ego claims belong to the creditor, not to the bankrupt estate.

The opinion by Circuit Judge Thomas Ambro reads Jevic as animating the solvent-debtor exception to the disallowance of unmatured interest.

The Eighth Circuit had held that a debtor has an ‘inchoate’ property interest in avoidance actions before bankruptcy, but Judge Collins ruled that a lender can’t have a lien.

Second Circuit leaves open the question of whether a trustee can sell a ‘general’ or ‘derivative’ claim that’s subject to a valid lien held by a creditor.

Reversing the BAP, the Ninth Circuit held that counsel’s oral waiver of sovereign immunity did not bind the state.

Professors disagree on whether latent asbestos claims can be discharged without a trust for future claimants.