Business Law

In a recent published opinion, the U.S. Bankruptcy Appellate Panel for the Ninth Circuit (the “BAP”) clarifies how bankruptcy courts may set the commitment period for payments of disposable income, or its value, under subchapter V of the Bankruptcy Code.  Read more

This federal district court opinion provides guidance on the enforceability of arbitration provisions that appear as part of the terms and conditions of a retail website. Read more

In a recently published opinion, the Ninth Circuit Court of Appeals (the Court) reversed a district court’s summary judgment in favor of CitiMortgage, Inc. Read more

Debtors Ascena Retail Group, Inc. (“Ascena”) and its 63 affiliates (collectively, “Debtors”) proposed a chapter 11 plan (“Plan”) that contained third-party releases and an exculpation clause. Read more

Presented by the Los Angeles Federal Bar Association. 4 Hours MCLE. Discount available for CLA Business Law Section members! Read more

A bankruptcy court in the Eastern District of Michigan (the Court) ruled that a state court judgment for foreclosure of tax claims and the subsequent sale of the debtor’s residence were not fraudulent transfers under Bankruptcy Code § 548. Read more

In a recent nonprecedential disposition, the Ninth Circuit (the Court) denied a prevailing debtor’s right to attorney’s fees arising from a nondischargeability adversary because the proceeding was not an action “on a contract” under California Civil Code § 1717. Read more

In a ruling that affirmed the confirmation of subchapter V Chapter 11 plan, the Bankruptcy Appellate Panel for the Ninth Circuit (the BAP) made two significant rulings: (1) that a profit motive is not required to satisfy the requirement of Bankruptcy Code § 1182(1)(A) that a debtor must be “engaged in commercial or business activities” on the petition date to be eligible for subchapter V; and (2) that the burden is on the debtor to prove subchapter V eligibility. Read more

In a recent published opinion, the Fourth Circuit Court of Appeals (the Court) ruled that the defense of in pari delicto is applicable against a bankruptcy trustee pursuing litigation on behalf of the estate, whether the trustee is standing in the shoes of the debtor or in the shoes of a hypothetical lien creditor. Read more

The Bankruptcy Court for the Western District of New York (the “Court”) recently denied confirmation of a Subchapter V plan and dismissed three consolidated Subchapter V cases for cause on motions by the Office for the U.S. Trustee (“UST”), exercising discretion not to convert to Chapter 7. In re MCM Natural Stone, 2022 WL 1074065, 2022 Bankr. LEXIS 987 (Bankr. W.D.N.Y. April 8, 2022) Read more