Ohio Southern District

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.

Courts Divided on Contempt Sanctions as Automatically Nondischargeable

Showing intentional violation of court order isn’t enough for nondischargeability.

Once Property Is Abandoned, Proceeds Belong to Debtor

Judge bends over backward so debtor can keep an $80,000 windfall.