Category: Bankruptcy

Who Owns “Product Line” Successor Liability Claims: The Debtor Or The Claimants? (In re Whittaker–Part 3)

By: Donald L Swanson The question of who owns “product line” successor liability claims is addressed and resolved in In re Whittaker Clark & Daniels, Inc., Case Nos. 24-2210 & 24-2211 (3rd Cir., decided September 10, 2025).## Facts The Whittaker Debtor processes, manufactures, and distributes industrial chemicals and minerals, including talc. Through a series of corporate... Continue Reading →

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Bankruptcy Court Has Subject Matter Jurisdiction Over An Improperly Filed Petition—But Must Dismiss (In re Whittaker–Part 2)

By: Donald L Swanson Even though a bankruptcy petition is improperly filed, the bankruptcy court still has subject matter jurisdiction over the case—but must dismiss it. That’s what the U.S. Third Circuit Court of Appeals declares in In re Whittaker Clark & Daniels, Inc., Case Nos. 24-2210 & 24-2211 (3rd Cir., decided September 10, 2025).## What... Continue Reading →

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A Bankruptcy-Funding Scam Leads To Prison (U.S. v. Fenner)

A scammer? (Photo by Marilyn Swanson) By: Donald L Swanson Every now and then, I say something like, “I’ve seen it all.” Then something happens, and I’m forced to admit, “Nope. I haven’t.” Here is one of those somethings—a bankruptcy-funding scam: United States v. Fenner, Case Nos. 23-2177 & 24-1089 at U.S. Court of Appeals for... Continue Reading →

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For An Involuntary Bankruptcy, All 12-Limit Creditors Must Be Qualified Creditors (In re HH Technology)

Qualifications? (Photo by Marilyn Swanson) By: Donald L Swanson The opinion is PCC Rokita, S.A. v. HH Technology Corp. (In re HH Technology Corp.), Case No. 24-9002 (1st Cir.; decided July 24, 2025). The opinion begins like this (emphasis added): “Debtors initiate most bankruptcy cases. But sometimes, creditors are the initiators. Creditors initiate a bankruptcy case... Continue Reading →

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Do Federal Courts Have Bankruptcy Jurisdiction Over Solvent Debtors? (Bestwall v. Committee)

Jurisdiction? (Photo by Marilyn Swanson) By: Donald L Swanson The question addressed by the U.S. Fourth Circuit Court of Appeals in its Bestwell v. Official Committee opinion[fn. 1] is this (emphasis added): Do federal courts have subject matter jurisdiction over bankruptcy cases involving solvent debtors? Its answer is: “Yes.” Some History I started practicing law in... Continue Reading →

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Can A Debtor’s Board Put Debtor Into Bankruptcy After Appointment Of A State Court Receiver? (In re Whittaker–Part 1)

By: Donald L Swanson A receiver is appointed for Debtor.  Then Debtor’s board of directors puts Debtor into bankruptcy, Litigation ensues, resulting in this appellate opinion from the U.S. Third Circuit Court of Appeals: In re Whittaker Clark & Daniels, Inc., Case Nos. 24-2210 & 24-2211 (3rd Cir., decided September 10, 2025).## One of the Q... Continue Reading →

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Does A Pre-Petition Lien On “General Intangibles” Attach To Chapter 5 Avoidance Actions In Debtor’s Bankruptcy? (Keystone v. Hanrahan)

A general intangible? (Photo by Marilyn Swanson) By: Donald L Swanson The opinion is Keystone Savings Bank v. Hanrahan (In re BDC Group, Inc.), Case No. C24-104 in the U.S. District Court for Northern Iowa (decided July 17, 2025). Facts Bank’s security agreements and related UCC financing statements identify Debtor’s “general intangibles” as collateral. Debtor files... Continue Reading →

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Bankruptcy Courts Resolving Tax Disputes Under § 505—What Are The Limits? (Bush v. U.S.; Etc.)

Testing the limits? (Photo by Marilyn Swanson) By: Donald L Swanson What are the limits of a bankruptcy court’s jurisdiction and authority to resolve tax disputes under § 505?[Fn. 1] That’s the issue before the U.S. Supreme Court in a Petition filed on July 25, 2025, in Bush v. United States of America, Case No. 25-108.... Continue Reading →

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U.S. Department of Justice & Bankruptcy: A Massive and Irreconcilable Conflict Of Interest

Conflicting roles? (Photo by Marilyn Swanson) By: Donald L Swanson Recent political flaps within the Department of Justice highlight a more-basic bankruptcy concern that is neither partisan nor political.  The more-basic concern is this: the Department of Justice has, for its multiple roles in bankruptcy laws and practice, a massive and irreconcilable conflict of interest.  ... Continue Reading →

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A Refresher On § 1112(b) “Bad Faith” Dismissal For Debtor’s Solvency (In re Dandurand—Part 3)

A time to reflect and refresh (photo by Marilyn Swanson) By: Donald L Swanson It’s helpful, every now and then, to receive a refresher on basic bankruptcy laws. We have such a refresher — on a creditor’s motion to dismiss for “bad faith,” based on Debtor’s solvency at filing and absence of pre-petition defaults.  The opinion... Continue Reading →

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