On Bankruptcy and Mediation
Immune from the storm? (Photo by Marilyn Swanson) By: Donald L Swanson Does a Chapter 7 trustee, while performing official functions and duties, have immunity from suit for negligence? A Ninth Circuit’s en banc opinion on the subject is Phillips v. Goldman (In re Gilman), 176 F.4th 1152 (9th Cir., May 7, 2026). What follows is... Continue Reading →
Meeting the standards? (Photo by Marilyn Swanson) By: Donald L Swanson What are the legal standards for dismissing a regular Chapter 11 or Subchapter V case for being filed in bad faith? This question is addressed in In re JPK Newco, LLC, Case No. 25-0200 in the District of Columbia Bankruptcy Court (decided June 12,... Continue Reading →
Time is ticking away (photo by Marilyn Swanson) By: Donald L Swanson Can you say, “litigious”? And how about, “abusing the bankruptcy system”? Get this. A Chapter 7 case is pending in the Central California Bankruptcy Court (Case No. 11-bk-11603) that: began on February 7, 2011, with limited assets and a report of no distribution after... Continue Reading →
Standing? (Photo by Marilyn Swanson) By: Donald L Swanson A creditor does not have standing to oppose an involuntary bankruptcy petition when the debtor fails to do so. That’s the conclusion of In re Heron Cove, LLC, Case No. 3:26-08089, Middle Tennessee Bankruptcy Court (decided June 3, 2026; Doc. 25). What follows is a summary of... Continue Reading →
Estopped? (Photo by Marilyn Swanson) By: Donald L Swanson On June 11, 2026, the U.S. Supreme Court considers the doctrine of judicial estoppel in a bankruptcy case: Kethley v. Buddy Ayers.[Fn. 1]. The issue is: What happens when a bankruptcy debtor fails to disclose a claim against someone else but then attempts to pursue that undisclosed... Continue Reading →
Abstaining? (Photo by Marilyn Swanson) By: Donald L Swanson This is the second of two articles on abstention in bankruptcy. This article is about appellate review of a decision on bankruptcy abstention. Appellate review of a bankruptcy abstention rulings is limited: denial of a mandatory abstention motion can be appealed; but all other types of abstention... Continue Reading →
Apportioned? (Photo by Marilyn Swanson) By: Donald L Swanson The question in In re Pirron, Case No. 22 B 08555 (Bankry. N.D. Ill., Decided 2/18/2025), is this: How is a tax refund to be allocated between a bankruptcy debtor’s estate and the debtor’s spouse who does not file bankruptcy, when they file a joint tax return?... Continue Reading →
Abstaining? (Photo by Marilyn Swanson) By: Donald L Swanson Here is a bankruptcy abstention ruling: One William Street Capital Master Fund Ltd. V. Wilmington Trust, National Association, Case No. 26-CV-01123, S.D.N.Y. Bankruptcy Court (decided June 5, 2026). This is the first of two articles on abstention. The second article will be on limited appellate review of... Continue Reading →
Fixing the defects (Photo by Marilyn Swanson) By: Donald L Swanson Defaults on home mortgage loans are frequently cured under Chapter 13 plans. But what about defaulted home mortgages in Subchapter V? Here is an opinion dealing with such question: In re Koetters, Case No. 25-80895, Central Illinois Bankruptcy Court (decided May 29, 2026; Doc. 95).... Continue Reading →
Can’t always see it (photo by Marilyn Swanson) By: Donald L Swanson Chapter 11 bankruptcy filings by affiliated entities are common, as is joint administration of their bankruptcy cases with a single law firm representing them all. However, such common representation cannot be taken for granted. Here is an example of it not working: Whitehall Trust... Continue Reading →
