Courts May Bypass Equitable Mootness to Rule on the Merits, Fifth Circuit Says
Even if an appeal is equitably moot, the appellate court nonetheless has appellate jurisdiction. Equitable mootness is prudential, not jurisdictional.
Court:
A Buyer Is in Good Faith Despite Using Economic Leverage, Fifth Circuit Says
Supposedly nefarious facts aren’t evidence of bad faith if they were disclosed to the bankruptcy judge who nevertheless made a finding of good faith.
Court:
Judge Isgur Allows 401(k) Contributions in Chapter 13 Up to What the IRS Code Allows
Contributions to 401(k) plans are deducted from ‘projected disposable income,’ even though the debtor was not making contributions before filing
Later Developments Don’t Undo Subchapter V Eligibility, Houston Judge Says
In the Alex Jones corporate Subchapter V case, Bankruptcy Judge Christopher Lopez said that the later chapter 11 filing by Jones himself, with about $1.5 billion in debt, didn’t kick the corporate debtor out of Subchapter V and into ‘ordinary’ chapter 11.
$400,000 in Sanctions Upheld for Violation of a Confidentiality Order
A large sanction was civil, not criminal, because it was designed for deterrence.
A Trust Didn’t Defeat a Prior, Perfected Security Interest in Accounts Receivable
The district court characterized the agreement not as creating a trust but as a device designed to win priority over a prior, perfected security interest.
State Exemption for Life Insurance Policies Under Attack in Texas
Bankruptcy Judges Gargotta and Davis both held that the amended Texas exemption statute exempts life insurance policies and their cash surrender values.
It’s Not Easy for a Lender to Block an LLC from Filing Bankruptcy
A small business debtor must consent for a case to be converted to Subchapter V, Judge Robert Jones says.
Highland Capital Makes Law Again, This Time on Bankruptcy Appellate Standing
The ‘possibility of harm’ won’t confer bankruptcy appellate standing, the Fifth Circuit says.
Court:
‘Gatekeeping’ in the Fifth Circuit May Be Broader than Exculpations
Bankruptcy Judge Jernigan interprets the Fifth Circuit’s Highland Capital opinion to mean that gatekeeping protections are not limited to parties entitled to exculpation in the Fifth Circuit.