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…

The Bankruptcy Code contemplates the valuation of a secured creditor’s collateral for a variety of purposes at different stages of a bankruptcy case. While title 11 of the United States Code (the “Bankruptcy Code”) does not define “value” or determine precisely when to value a secured creditor’s collateral, section 506(a) of the Bankruptcy Code provides…

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…

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

…

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…

Among the potential prolonged impacts of the COVID-19 pandemic is the interruption to supply chains throughout several critical industries.  As a result, prices have increased as various goods and materials have become difficult to obtain.  A recent Washington Post article noted that the overall consumer price index has increased by close to or above 5%…

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…

Joseph J. DiPasquale, a partner in Fox Rothschild’s Morristown, New Jersey and New York City offices, is set to co-moderate a presentation on important developments in bankruptcy law throughout 2021.  Described as a “hallmark session of the conference,” Joseph J. DiPasquale and M. Blake Cleary of Young Conaway Stargatt & Taylor will review the…