BANKRUPTCY CODE & RULES

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Rochelle's Daily Wire

2nd Circuit

Coercive Contempt Sanctions Upheld by Second Circuit Under Inherent Authority

Worms v. Rozhkov (In re Markus)

Court’s inherent authority to sanction allows coercive contempt sanctions where rules and statutes are not up to the task.

9th Circuit

Stop Punishing the Innocent: Congress Should Fix the Doll/Evans Problem

In re Evans

What will become of the chapter 13 system if standing trustees must refund all fees collected in cases dismissed before confirmation? The answer is perhaps unexpected: Unsecured creditors in confirmed chapter 13 cases will pay the administrative expenses of cases that fail.

3rd Circuit

Contesting the Election of a ‘Permanent’ Trustee Is Compensable, Judge Goldblatt Says

In re Team Systems International LLC

Contesting the election of a chapter 7 trustee isn’t like defending a fee application, which Baker Botts held to be noncompensable.

5th Circuit

Payments Were Preferences Even Though They Were Made with Insurance Proceeds

Sommers v. Offshore Marine Contractors (In re Magellan E&P Holdings Inc.)

A preference opinion from Houston counsels creditors to be cautious when they are expecting payment from insurance.