News & Analysis as of

Chapter 7 Supreme Court of the United States

Tarter Krinsky & Drogin LLP

The Supreme Court Limits A Trustee’s Rights To Recover Fraudulent Transfers Against The Internal Revenue Service

The Bankruptcy Code provides chapter 7 trustees with significant powers to liquidate and collect estate assets and pursue litigation claims, such as fraudulent transfer claims against third parties, all to increase the...more

Ballard Spahr LLP

Supreme Court: No Strong-Arming the Federal Government With State-Law Fraudulent Transfer Claims

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Recently, in the case United States v. Miller, the U.S. Supreme Court held that the sovereign immunity waiver provision in the Bankruptcy Code is jurisdictional only and does not waive the federal government’s sovereign...more

Cadwalader, Wickersham & Taft LLP

Taking Apart Section 544(b): Supreme Court Clarifies Scope of Sovereign Immunity in Avoidance Actions

On March 26, 2025, the Supreme Court held in an 8‑to‑1 decision authored by Justice Ketanji Brown Jackson that Section 106(a) of the Bankruptcy Code waives the federal government’s sovereign immunity with respect to...more

Nelson Mullins Riley & Scarborough LLP

United States v. Miller Oral Argument: Supreme Court Justices Seem Divided on Issues of Allowing a Trustee to Sue the IRS for...

This author previously wrote an article published in Bloomberg Law regarding the Supreme Court’s decision to take up an appeal of a decision on the Tenth Circuit Court of Appeals in United States v. Miller. In Miller, the...more

Jones Day

U.S. Supreme Court Bankruptcy Update

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The U.S. Supreme Court handed down three bankruptcy rulings to finish the Term ended in July 2024. The decisions address the validity of nonconsensual third-party releases in chapter 11 plans, the standing of insurance...more

Seward & Kissel LLP

Last Hurrah, Noodling on Chicken Soup and No R&R for J&J

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Purdue Pharma secures litigation ceasefire after US Supreme Court ruling | Reuters - On Tuesday, U.S. Bankruptcy Judge Sean Lane granted Purdue Pharma court approval for a 60-day freeze on lawsuits against the Sackler...more

Jones Day

Business Restructuring Review July-August 2023 | Vol. 22 No. 4

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There is longstanding controversy concerning the validity of third-party release provisions in non-asbestos trust chapter 11 plans that limit the potential exposure of various nondebtor parties involved in the process of...more

Troutman Pepper Locke

High Court Bankruptcy Ruling Is a Warning to Joint Obligors

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In a unanimous decision, the U.S. Supreme Court held that Section 523(a)(2)(A) of the U.S. Bankruptcy Code precludes a debtor from discharging a debt obtained by fraud, regardless of the debtor's own culpability. ...more

Jones Day

Business Restructuring Review | May–June 2023 | Vol. 22 No. 3

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Section 363(m) of the Bankruptcy Code provides that the reversal or modification of an order approving a sale or lease of assets in bankruptcy does not affect the validity of the sale or lease to a good-faith purchaser or...more

Rivkin Radler LLP

U.S. Supreme Court: Debts Due to Business Partner’s Fraud Non-Dischargeable

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Earlier this year, the Supreme Court issued a decision that all business owners should be aware of. The Supreme Court resolved a Circuit split over whether a debtor can discharge a debt incurred by a fraud committed by the...more

Harris Beach Murtha PLLC

U.S. Supreme Court: Debt Incurred by Partner’s Fraud is Non-Dischargeable in Bankruptcy

On February 22, 2023, in Bartenwerfer v. Buckley, 598 U.S. __ (2023), the U.S. Supreme Court ruled that a debtor who is liable for her partner’s fraud cannot discharge that debt in bankruptcy, regardless of her own...more

Nelson Mullins Riley & Scarborough LLP

Supreme Court Confirms Nondischargeability of Debts Obtained by Fraud

In a unanimous decision handed down on Feb. 22, 2023, the Supreme Court reinforced one of the Bankruptcy Code’s important creditor protections. In Bartenwerfer v. Buckley, No. 21-908, 598 U.S. ___ (2023), the Court confirmed,...more

Tucker Arensberg, P.C.

U.S. Supreme Court Determines a Fraudulent Debt Cannot Be Discharged, Regardless of Debtor’s Culpability

Tucker Arensberg, P.C. on

In Bartenwerfer v. Buckley, 598 U.S. __ (2023), the United States Supreme Court, in a unanimous opinion authored by Justice Amy Coney Barrett, determined that a debtor could not discharge a judgment debt because the “debt...more

Troutman Pepper Locke

Supreme Court Holds Debtor Who is Liable for Fraud Cannot Discharge That Debt in Bankruptcy

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In a unanimous decision, the Supreme Court held that § 523(a)(2)(A) of the Bankruptcy Code precludes a debtor from discharging a debt obtained by fraud, regardless of the debtor’s own culpability. In Bartenwerfer v. Buckley,...more

Rosenberg Martin Greenberg LLP

Affordable Care Act Battle Rages On: Fourth Circuit Holds Individual Mandate Is a Tax in Bankruptcy

As originally enacted, the Affordable Care Act (“ACA”) required most people to maintain health insurance. Those who did not maintain the required insurance were obligated to pay a “shared responsibility payment” (“SRP”),...more

Fox Rothschild LLP

Bifurcated Fee Agreements Approved in Southern District of Florida, But Barred in Western District of Kentucky

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The United States Supreme Court ruled that 11 U.S.C. § 330(a)(1) does not authorize compensation to debtors’ attorneys from estate funds. Lamie v. U.S. Trustee, 540 U.S. 1023 (2004). A chapter 7 lawyer cannot look to the...more

Jones Day

Post-Taggart, Ninth Circuit BAP Holds That "No Fair Ground of Doubt" Standard Applies to Automatic Stay Violations

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In Taggart v. Lorenzen, 139 S. Ct. 1795 (June 3, 2019), the U.S. Supreme Court ruled that a bankruptcy court may hold a creditor in civil contempt for attempting to collect on a debt that has been discharged in bankruptcy "if...more

Bradley Arant Boult Cummings LLP

Having Trouble with CARES Act Forbearances in Ch. 13 Bankruptcy? You’re Not Alone!

Consumers that have pending Chapter 13 bankruptcy cases undoubtedly suffered from financial hardship prior to the COVID-19 pandemic. For many of those consumers, the pandemic may have exacerbated that hardship...more

Farrell Fritz, P.C.

To Be (Held in Contempt) or Not To Be? That Is the (Bankruptcy) Question

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Recently, the United States Supreme Court in Taggart v. Lorenzen set the legal standard that should be followed by bankruptcy courts when determining whether to hold a creditor in civil contempt for attempting to collect a...more

Rumberger | Kirk

The Supreme Court Hands Down a New Standard for Bankruptcy Discharge Violations

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On June 3, 2019, Justice Breyer delivered a unanimous opinion of the Supreme Court conclusively establishing the standard courts must apply to hold a creditor in civil contempt for violation of a bankruptcy discharge order....more

Rosenberg Martin Greenberg LLP

“It Ain’t Over ‘Til It’s Over” The Third Circuit Channels Yogi Berra In Ruling On Tax Sale

Anyone who listens to the radio on the way to work has heard ads inviting them to free seminars in their local area at which they can learn how to make easy money buying “government secured” tax certificates.  Purchasing such...more

Jones Day

From the Top in Brief - August 2019

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On June 3, 2019, the U.S. Supreme Court ruled in Taggart v. Lorenzen, 139 S. Ct. 1795 (2019), that a bankruptcy court may hold a creditor in civil contempt for attempting to collect on a debt that has been discharged in...more

Hinshaw & Culbertson LLP

Creditors Beware: Collection of Debt Based on Unreasonable Belief/Understanding That the Debt Was Not Discharged in Bankruptcy...

In Taggart v. Lorenzen, the U.S. Supreme Court reviewed the 9th Circuit Court of Appeals' Order, which affirmed the Bankruptcy Appellate Panel's Order vacating civil contempt sanctions against Bradley Taggart's ("Bradley")...more

Fox Rothschild LLP

United States Supreme Court Holds That An “Objective Analysis” Applies To Determine Whether Civil Contempt Is Appropriate For A...

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The United States Supreme Court granted certiorari to determine the applicable legal standard for holding a creditor in civil contempt when a creditor attempts to collect a debt that falls within an issued bankruptcy...more

Ward and Smith, P.A.

Supreme Court Sets Standard for Bankruptcy Discharge Violations

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When your customer is in bankruptcy, there are two major no-nos that you must remember. First, don't violate the automatic stay, which prevents a creditor from attempting to collect a debt while the debtor is in bankruptcy...more

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