Ohio Southern District

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.