The City of Chicago impounded vehicles for nonpayment of fines. When the owners filed chapter 13 cases and requested that the city return their vehicles, the city refused. The bankruptcy court held that the city’s refusal violated § 362(a)(3) because it had acted to “exercise control over” the debtors’ vehicles. The Supreme Court reversed. City
Michael Temin
Bifurcated Fee Agreements Approved in Southern District of Florida, But Barred in Western District of Kentucky
The United States Supreme Court ruled that 11 U.S.C. § 330(a)(1) does not authorize compensation to debtors’ attorneys from estate funds. Lamie v. U.S. Trustee, 540 U.S. 1023 (2004). A chapter 7 lawyer cannot look to the estate or to the debtor postpetition for payment of fees for services rendered or to be rendered if…
COMPLIANCE WITH OFFICIAL BANKRUPTCY FORM 105 SATISFIES ASHCROFT V. IQBAL
Section 11 of Official Bankruptcy Form 105, Involuntary Petition Against an Individual, provides:
Allegation
Each petitioner is eligible to file this petition under 11 U.S.C. § 303(b).
The debtor may be the subject to an involuntary case under 11 U.S.C. § 303(a).
At least one box must be checked:
[ ] The debtor is generally
…
You Have to Follow the Rules: The Importance of Adhering to Bankruptcy Rule 2002 When Serving Claims Bar Date Notices
A Delaware bankruptcy court recently held that the bar date for filing proofs of claim cannot be enforced against a creditor if the notice of the bar date was not sent by mail to that creditor. In re Cyber Litigation Inc., No. 20-12702 (CTG) (Bankr. D. Del. Oct. 21, 2021).
Relevant Bankruptcy Rules
Bankruptcy Rule…
Bankruptcy Rules of Procedure Apply When a District Court is Hearing a “Related To” Proceeding
The First Circuit was required to decide whether the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) or the Federal Rules of Civil Procedure (the “Civil Rules”) govern a case that comes within the federal district court’s jurisdiction as a case “related to” a pending bankruptcy case. If the Bankruptcy Rules applied, plaintiffs’ motion for…
DISQUALIFICATION OF ATTORNEY FOR CREDITOR COMMITTEE VACATED
Coauthored by Martha B. Chovanes
Introduction
The relationship for which counsel for a committee could be disqualified was addressed in the recent case of Bingham Greenbaum Doll, LLP v. Glenview Health Care Facility, Inc., 620 B.R. 582 (6th Cir. B.A.P. 2020) (“Glenview”). In Glenview, the debtor corporation was owned by two shareholders. The…
The Third Circuit, Latent Tort Claims and Bankruptcy Code § 524(g)
Coauthored by Martha B. Chovanes
To give a reorganized debtor a “fresh start,” the Bankruptcy Code provides that the confirmation of a plan discharges the debtor from any debt that arose before the confirmation date. However, if a potential claimant lacks sufficient notice of a bankruptcy proceeding, due process considerations dictate that his or her…