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Chapter 7

Offit Kurman

What Happens to Debt in Divorce if a Spouse Files Bankruptcy?

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Divorce and bankruptcy are both stressful on their own, but when they overlap, things can become especially complicated. Understanding how these two legal processes interact is critical, particularly when dividing debt....more

Falcon Rappaport & Berkman LLP

A Cold Shoulder for MCA Vendors in Bankruptcy Court

Merchant cash advance (“MCA”) providers have long relied on form agreements and carefully chosen labels—purchase of future receivables, not a loan, no fixed term—to insulate their products from usury laws and borrower...more

Jones Day

Bankruptcy in Brief: U.S. Supreme Court Rules that Requests to Set Aside Void Judgments Must Be Made Within a "Reasonable Time"

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Rule 60(a) of the Federal Rules of Civil Procedure ("Fed. R. Civ. P.") provides that a federal court can, on the request of a litigant or its own initiative, correct clerical mistakes or mistakes arising from oversight or...more

K&L Gates LLP

Private Lending: Unfolding Litigation Developments and Managing Risks

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With increased uncertainty in the US economy around tariffs and other federal policies, the historically high levels of commercial and government debt in the United States and other major economies, and continued volatility...more

Pillsbury Winthrop Shaw Pittman LLP

Bankruptcy Court Awards $2.5 Million in Mandatory Indemnification to Director Against Chapter 7 Estate

The U.S. Bankruptcy Court for the Western District of Texas has concluded that a post-judgment motion under Federal Rule of Civil Procedure 54 provides the proper vehicle for seeking indemnification under section 145 of the...more

Orrick, Herrington & Sutcliffe LLP

Court rules bankruptcy abbreviation not a credit reporting error under the FCRA

On February 4, the U.S. District Court for the Middle District of Florida dismissed a pro se plaintiff’s complaint alleging violations of the FCRA against a consumer reporting agency. The plaintiff claimed the agency...more

Fox Rothschild LLP

Supreme Court Puts a Clock on Attacking “Void” Judgments

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The U.S. Supreme Court has clarified that there is a time limit—specifically, a “reasonable time” under Rule 60(c)(1)—for filing motions to set aside judgments as “void” under Rule 60(b)(4), even where the alleged voidness...more

Holland & Knight LLP

2025 Aviation Bankruptcy Update

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In keeping with the past five years, 2025 has continued to be an active time for airline restructurings and liquidations. The two largest U.S. aviation Chapter 11 proceedings that commenced during 2024, Spirit Airlines and...more

Thompson Coburn LLP

Bankruptcy Administration Improvement Act Doubles Chapter 7 Trustee Fee

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For the first time since 1994, the Bankruptcy Code has been amended to double the fees paid as compensation to trustees serving in Chapter 7 bankruptcy liquidation cases. On February 6, 2026, President Trump, after near...more

Falcon Rappaport & Berkman LLP

When Taxes Don’t Go Away: Bankruptcy, Willful Evasion, and the Limits of a Fresh Start

A recent decision from the United States Bankruptcy Court for the Southern District of New York offers a stark reminder that bankruptcy is not a cure-all—particularly when unpaid tax liabilities are the result of deliberate...more

Freeman Mathis & Gary

Rule 60(b)(4): Not a Get-Out-of-Time-Free card. Supreme Court closes the door on “void anytime” motions.

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In Coney Island Auto Parts Unlimited, Inc. v. Burton (Chapter 7 Trustee for Vista-Pro Automotive, LLC), the Supreme Court addressed whether Rule 60(c)(1)’s “reasonable time” requirement applies to a motion seeking to set...more

Mintz - Bankruptcy & Restructuring Viewpoints

2025 Bankruptcy Roundup: Rising Filings and Evolving Dynamics

Bankruptcy activity across the United States increased noticeably in 2025, marking one of the sharpest rises in more than a decade and reflecting mounting financial pressure on businesses and individuals alike. While the...more

Cadwalader, Wickersham & Taft LLP

Money For Nothing: Indictment Details Tricolor Executives’ Alleged Fraudulent Scheme in Black and White

On December 17, 2025, the United States Attorney’s Office for the Southern District of New York announced the unsealing of an indictment charging the former CEO and former COO of Tricolor Holdings LLC and its affiliates...more

Offit Kurman

2025 WRAPPED

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2025 is nearly in the books, but before we turn the page, we’re taking a step back to reflect on some overlooked lessons from the bankruptcy courts. We’ve combed through the year’s rulings and selected three cases that merit...more

Patterson Belknap Webb & Tyler LLP

Debts Related to Ponzi Scheme Deemed Non-Dischargeable

Here at the Bankruptcy Update, we frequently write on the intersection of insolvency and fraud, including collapsed Ponzi schemes. Another Ponzi-scheme related opinion recently issued from the United States Bankruptcy Court...more

Fox Rothschild LLP

Christmas Tree Shops: Unwrapping the Delaware Court’s Gift for Pleading the Preference Due Diligence Requirement

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If your holiday to‑do list includes lights, cocoa, and some year‑end legal news, here’s a little stocking stuffer for you. In a recent decision from the United States Bankruptcy Court for the District of Delaware, Judge...more

Seward & Kissel LLP

Release Stress, Maximizing Value (City), and More Color

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Azul wins court nod for debt restructuring, American and United to invest | Reuters - Last Friday, a U.S. bankruptcy judge approved the Brazilian airline’s restructuring plan, which includes an equity rights offering as...more

Bradley Arant Boult Cummings LLP

The Impact of Jarkesy on the Right to a Jury in Bankruptcy Proceedings

A recent Supreme Court case has brought a long-standing question in bankruptcy practice back to the fore: When do parties have the right to a jury trial? In the summer of 2024, the Supreme Court decided Securities and...more

Jones Day

Iowa District Court: Avoidance Claims Cannot Be Encumbered by Pre-Bankruptcy Liens

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Causes of action for avoidance and recovery of preferential, fraudulent, or unauthorized transfers often are a means of generating value for the benefit of the estate and creditors in a bankruptcy case. For this reason, many...more

Wiley Rein LLP

Bankruptcy Court Limits Estate’s Reach: Trustee Cannot Claim D&O Insurance Proceeds for the Estate

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The United States Bankruptcy Court for the Southern District of Texas, applying federal bankruptcy law, has held that proceeds of a management and entity liability policy were not property of the entity debtor’s bankruptcy...more

Foley Hoag LLP - Cannabis and the Law

Intoxicating Hemp Companies Facing the Ban Should Consider Federal Bankruptcy Relief Early

The “loophole” that for years exempted intoxicating hemp from the prohibitions of the Controlled Substances Act (“CSA”) is set to close on November 13, 2026, following the federal ban enacted earlier this month. Companies...more

Neal, Gerber & Eisenberg LLP

Cybersecurity and Data Privacy Implications When a Services Partner Fails

On November 10, 2025, Sonder Holdings Inc. (“Sonder”), a company operating apartment‑style and boutique hotel accommodations, announced termination of its licensing agreement with Marriott International, Inc. due to Sonder’s...more

Seward & Kissel LLP

Bonvoy-age Sonder and Purdue Conphirmation

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Airbnb rival Sonder Holdings to file for bankruptcy after Marriott ends partnership | Business Insider - Guests were ejected from ongoing bookings as Marriott made the announcement on Sunday....more

Hinshaw & Culbertson - Consumer Crossroads

Mortgage Lender Insights: Exploring the Impact of Surrendering Collateral in Bankruptcy on Foreclosure Litigation

A debtor’s statement of intention to surrender collateral under 11 U.S.C. 521(a)(2) in bankruptcy may impact their ability to contest foreclosure, primarily due to the application of judicial estoppel. This blog post explores...more

Falcon Rappaport & Berkman LLP

Bankruptcy Court Grants In Rem Relief to Creditor, Strengthening Protections Against Serial Bankruptcy Filers

In a recent decision that reinforces creditor protections against serial bankruptcy filers, the United States Bankruptcy Court for the Eastern District of California granted in rem stay relief under Section 362(d)(4) of the...more

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