BANKRUPTCY CODE & RULES

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Rochelle's Daily Wire

5th Circuit

A District Court Decision Implies that Marshaling Is Impermissible in Bankruptcy

U.S. v. Ries

The circuits are split on whether a bankruptcy court can compel marshalling by the IRS.

2nd Circuit

A Foreign Branch of an FDIC-Insured U.S. Bank Remains Ineligible for Chapter 15

In re Silicon Valley Bank (Cayman Islands Branch)

The district court affirmed the holding by Bankruptcy Judge Martin Glenn that a foreign branch of a U.S. bank isn’t eligible for chapter 15.

6th Circuit

The ‘Probate Exception’ to Federal Subject Matter Jurisdiction Is Narrow

Gold v. Williams (In re Williams)

The ‘probate exception’ to federal subject matter jurisdiction does not prevent bankruptcy courts from basing decisions on state trusts and estates law, except in limited circumstances.

11th Circuit

Nondischargeability in Sub V Only Applies When It’s a Nonconsensual, Cramdown Plan

Halo Human Resources LLC v. American Dental of LaGrange LLC (In re American Dental of LaGrange LLC)

A creditor must control a class before its debt can become nondischargeable in Subchapter V.