Business Law Insolvency Law Committee

In an eligibility dispute in a Subchapter V Chapter 11 bankruptcy case, the United States Bankruptcy Court for the Western District of Michigan (the Court) ruled the debtor was eligible, concluding that debts asserted in a Qui Tam action against the debtor for alleged misuse of Economic Injury Disaster Loan (EIDL) funds were contingent and unliquidated.  Read more

In a Memorandum Opinion addressing a motion to dismiss an adversary complaint and for reconsideration, the United States Bankruptcy Court for the Southern District of New York (the Court) ruled (1) that a bankruptcy court could entertain a class action claim for declaratory relief arising from violation of the discharge injunction and (2) that a private right of action exists for a violation of the discharge injunction.  Read more

November 18, 2025 Dear constituency list members of the Insolvency Law Committee, please be advised that the U.S. Bankruptcy Court for the Southern District of California just issued General Order 210: Filings Using Generative Artificial Intelligence, which governs the use of generative Artificial Intelligence (AI) for all pleadings, motions, and papers filed in Court proceedings. General Order 210 is effective January 1, 2026.  Click HERE to view General Order 210. Thank you for your continued support of the Committee. Read more

The following is a case update written by Hale Andrew Antico, Chief Counsel of Antico Law Firm, analyzing Fantasia v. Diodato, 154 F.4th 1123 (9th Cir, 2025) , a recent case of interest. Read more

In In re Riddle, the United States Bankruptcy Court for the District of New Mexico (the “court”), Case No. 23-10827-j7 (August 15, 2025) (“Riddle”) held that the debtor’s former state court law defense firm lacked standing to object to the Chapter 7 trustee’s motion to sell the estate’s malpractice claim against the firm to the judgment creditor in the state law case.  Read more

Intro The United States Court of Appeals for the Third Circuit (the Third Circuit) recently affirmed a bankruptcy court decision in a chapter 13 case which granted relief from the automatic stay to a mortgage holder, allowing it to complete a foreclosure on the Debtor’s home.  In the intermediate appeal from the bankruptcy court ruling, the district court had also affirmed, but then had dismissed the appeal for lack of jurisdiction under the Rooker-Feldman doctrine.  The Third Circuit held that the… Read more

In Zac Fancher v Tulare County, the BAP affirmed dismissal of Plaintiff’s claims, ruling that claim preclusion barred re-litigation of issues already decided in state court and that the abatement lien was valid as it attached by operation of law, regardless of recordation timing, upholding the county’s abatement actions in bankruptcy. Read more

The following is a case update written by ILC Advisor Lieb M. Lerner analyzing In Re Svenhard's Swedish Bakery,  ___ F. 4th ___, 2025 WL 2627837 (9th Cir. Sep 12, 2025), a recent case of interest. Read more

The following is a case update written by Hale Andrew Antico, Chief Counsel of Antico Law Firm, analyzing FAB 5 LLC v. Dye (In re FAB 5 LLC),  2025 WL 2556098 (B.A.P. 9th Cir. Sep 5, 2025). Read more

In Fancher, the bankruptcy court held unpaid music royalties nondischargeable under Bankruptcy Code § 523(a)(2) based on fraudulent accounting omissions but held that no fiduciary duty existed under § 523(a)(4) due to lack of entrustment to the manager, as a nonowner. Read more