California Lawyers Association

Business Law Insolvency Law Committee

Updates from the BLS Insolvency Law Committee

n In re Drummond, the United States Bankruptcy Court for the District of Arizona certified to the Arizona Supreme Court the question of whether a motor home qualifies as a mobile home for the homestead exemption under Arizona law. The Arizona Supreme Court answered that a motor home does not qualify as an exempt “mobile home.” Read more
In In re Lee and Chen, 2023 WL 7489928 (BAP 11/13/23), the Bankruptcy Appellate Panel for the Ninth Circuit ("BAP") held that § 1322(c)(2) is an exception to § 1322(b)(2), and that the Chapter 13 debtors were able to bifurcate and cramdown a secured debt on their residence that matures during the plan. Read more
In In re Evans, 69 F.4th 1101 (9th Cir. 2023), the Ninth Circuit Court of Appeals has joined the Tenth Circuit decision in In re Doll, 57 F.4th 1129 (10th Cir. 2023) on an issue that other circuits have also recently addressed, holding that a standing trustee in a Chapter 13 case may not be paid her percentage fee when the case is dismissed prior to confirmation. Read more
In In re Medley, the United States Court of Appeals for the Ninth Circuit affirmed the ruling of the Ninth Circuit Bankruptcy Appellate Panel (“BAP”) affirming a contempt order for willful violation of the automatic stay. Read more
The following is a case update written by Hale Andrew Antico, Chief Counsel of Antico Law Firm, analyzing Green Coin v. Khadavi (In re Khadavi), 2023 WL 859668 (9th Cir. Dec 12, 2023), a recent case of interest. Read more
On September 27, 2023, the Insolvency Law Committee filed an amicus brief in the United States Supreme Court in William K. Harrington, United States Trustee, Region 2 v. Purdue Pharma L.P. et al., No. 23-124 (Purdue 4). Leonard Gumport, counsel on that brief, describes the recent oral argument in Purdue 4. Read more
The Tenth Circuit Court of Appeals (the Circuit Court) recently applied the earmarking doctrine to determine that a debtor did not have an interest in funds that were used to pay subordinated debt, in contradiction to the terms of a chapter 11 plan.  The decision reversed the Tenth Circuit Bankruptcy Appellate Panel (the BAP), which had reversed the original decision of the bankruptcy court. Read more
In Reznick v. UST (In re DA & AR Hospice Care, Inc.) 2023 WL 6939858 (9th Cir. BAP 10/20/23), the Bankruptcy Appellate Panel for the Ninth Circuit ("BAP") held that debtor’s attorney in a corporate Chapter 11 case filed the bankruptcy in bad faith, committed fraud on the court, and violated Rule 11. Read more
In Trinity Financial Services, LLC v. Treadwell, 2023 WL 7107283 (N.D. Cal. Oct. 27, 2023), the United States District Court for the Northern District of California (“District Court”) held that the Chapter 13 creditor’s actions, after it learned of its avoided lien, did not meet the standard for seeking relief under Rule 60 for excusable neglect. Read more
The Sixth Circuit Court of Appeals (the Court) ruled that a debtor who successfully fended off a motion to dismiss her bankruptcy case for abuse under 11 U.S.C. § 707(b) was not entitled to recover the attorney’s fees incurred in defense of the motion under the Equal Access to Justice Act (EAJA) because the motion was not a “civil action”. Read more

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