The ‘Ordinary Course’ Defense Is Satisfied by Showing One of the Two Tests, Not Both
Following the 2005 amendments, satisfying either the subject test or the objective test will prove the ‘ordinary course’ defense to a preference, Judge Hoffman says.
Courts Are Split on Including a Nonfiling Spouse’s Social Security Benefits
Judge Beth Buchanan decided that the ‘totality of the circumstances’ test for ‘abuse’ doesn’t permit disregarding the exemption for Social Security benefits.
Bankruptcy Judge Refuses to Enforce an Arbitration Agreement
An exculpation clause in a chapter 11 plan protected the owner’s counsel from a malpractice suit.
Taggart Means No Strict Liability for Violating a Corporate Debtor’s Automatic Stay
Persuasive authority is required before a creditor can be held in contempt for violating the automatic stay protecting a corporate debtor.
Circuit Split on U.S. Trustee Fees Likely Won’t Reach the Supreme Court Until Fall 2022
Judge Hoffman sets up Sixth Circuit to opine on the circuit split regarding the constitutionality of the 2018 increase in fees for the U.S. Trustee system.
An Undersecured Lender Can Indirectly Waive the Right to an 1111(b) Election
Agreeing to bidding procedures can waive the right to make the Section 1111(b) election, Judge Hoffman says.
Another Workaround Following the Prohibition of Nunc Pro Tunc Orders
The Supreme Court hasn’t prohibited paying counsel fees for services rendered before the entry of a retention order, Judge Preston says.
Large Medical Bills Held Not to Be ‘Consumer’ Debts
Courts are split on whether large medical bills are consumer debts that invoke the means test and can bar relief in chapter 7.
Courts Hopelessly Split on Modifying Mortgages on Mixed-Use Residential Properties
Judge Buchanan collects authorities on all sides of two questions befuddling courts everywhere.
Trustees Don’t Get a Second Bite at the Abandonment Apple
The debtor, not the trustee, can profit from a secured creditor’s mistakes.