Bankruptcy Code, Reversal, Chapter 7

U.S. Supreme Court Rules that Bankruptcy Code Provides Only Limited Abrogation of Sovereign Immunity to Avoidance Actions

Jones Day on 5/22/2025

Bankruptcy trustees and chapter 11 debtors-in-possession ("DIPs") frequently seek to avoid fraudulent transfers and obligations under section 544(b) of the Bankruptcy Code and state fraudulent transfer or other applicable...more

Timing May Be Everything When Employing Bankruptcy Professionals

Rosenberg Martin Greenberg LLP on 8/1/2024

When Byron David filed a Chapter 7 bankruptcy case in July of 2018, Donald King was appointed Chapter 7 trustee. King filed an application to retain a law firm as his counsel. The bankruptcy court granted that application....more

Safe Harbor Provision of Section 546(e) Applies to Privately Held Securities

King & Spalding on 7/20/2023

On May 2, 2023, the U.S. District Court for the Southern District of Indiana reversed a bankruptcy court, finding that Section 546(e) of the Bankruptcy Code preempts state law fraudulent transfer claims and that the...more

The Letter of Credit Conundrum: When a Debtor’s Default May Be Preferable to Its Late Payment

Pillsbury Winthrop Shaw Pittman LLP on 8/20/2020

“Can an unsecured creditor be better off when the debtor defaults rather than paying off the debt? Yes: Law can be stranger than fiction in the Preference Zone.”—Ninth Circuit Untimely payment by tenants and other obligors...more

First Circuit Holds that Parents’ Tuition Payments for Adult Children Are Fraudulent Transfers

Bradley Arant Boult Cummings LLP on 12/2/2019

Recently, the First Circuit held that a parent’s tuition payments on behalf of an adult child do not benefit the parent’s bankruptcy estate, and a Chapter 7 trustee may therefore claw the payments back as fraudulent...more

Where a “Fair Ground of Doubt” Can Create Comfort: Taggart v. Lorenzen

Bradley Arant Boult Cummings LLP on 6/7/2019

In a unanimous, and perhaps unsurprising, decision, the Supreme Court determined that a creditor may be held in civil contempt for violating the discharge injunction if there is “no fair ground of doubt” as to whether the...more