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Savage v. Coastal Capital LLC (In re Savage)
Savage v. Coastal Capital LLC (In re Savage), 25-1249 (1st Cir. Feb. 27, 2026) Retired Bankruptcy Judge Bruce Harwood, is affirmed by the First Circuit. To deny an individual’s discharge under Section 727(a)(5) for failure “to explain satisfactorily” a loss of assets, the First Circuit held that the missing assets need not be substantial. Objecting to the debtor’s discharge, a secured creditor established at trial that the debtor had not explained the disappearance of almost $57,000 from a total of about $700,000 that the debtor had received from the corporation he controlled in the year before his chapter 7 filing.…
Farms Facing Bankruptcy
Comment of The Bankruptcy Law Firm, PC, by KPMarch, Esq: Most people in urban areas in California are not aware that there is a huge amount of farming in California. In fact, the US Department of Agriculture reports that the state of California has the highest gross receipts from agriculture of any of the 50 states. As a result, stress on farming can have a big negative effect, not just on California farmers, but on the whole state of California. See the following March 4, 2026 Report of Caroline Weier KAALTV, KSTP KSTP, that between 2024 and 2025, 1,300 farms…
In re Town & Country Event Center LLC, 25-24205 (Bankr. E.D. Cal. Feb. 11, 2026)
In re Town & Country Event Center LLC, 25-24205 (Bankr. E.D. Cal. Feb. 11, 2026): bankruptcy court decision by BkyJudge Christopher Klein in Sacramento. He’s just a bankruptcy judge, but very well thought of. I will cite this case in updates Chapter 8-I or 8-II, and suggest it be cited in updates re sanctions, since Klein uses FRBP Rule 11 to sua sponte sanction a debtors atty whom judge client found knowingly participated in scheme to hinder, delay or defraud creditors. Cites that 11 USC 362(d)(4). 362(d)(4) says ct can grant RFStay if filing petition was part of a scheme…
Trump administration identifies more borrowers eligible for student loan forgiveness, court filing shows
CNBC on 2/17/26 reports that: Key Points The Trump administration identified more than 40,000 borrowers eligible for federal student loan forgiveness in January, according to a recent court filing. Borrowers became eligible for the debt cancellation under the terms of their repayment plan or through Public Service Loan Forgiveness. “We have several clients who got the ‘golden email’ this month,” said Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York. The Trump administration has identified more than 40,000 borrowers eligible for federal student loan forgiveness in January, a recent court filing revealed. More than 10,800…
Herlihy v. DBMP LLC, 24-2109 (4th Cir. Feb. 11, 2026): Over Dissent Again, Fourth Circuit Allows Mass Tort Reorgs Without Financial Distress
Fourth Circuit needs to sit en banc before deciding whether Carolin and Robbins apply when the debtor is not in financial distress. For the fourth time, Circuit Judge Robert Bruce King has filed a vigorous dissent imploring his colleagues on the Fourth Circuit to sit en banc and reconsider whether the circuit’s Carolin and Robbins decisions permit chapter 11 reorganization by solvent debtors able to pay tort claims in full. As he had done twice last year in Bestwall dissents, Judge King said that “our Circuit has become the ‘safe haven’ for ultra-wealthy corporations seeking to evade asbestos-related civil tort…
Wilson v. JPMorgan Chase Bank N.A., 24-6897 (9th Cir. Feb. 5, 2026)
Wilson v. JPMorgan Chase Bank N.A., 24-6897 (9th Cir. Feb. 5, 2026), a new 9th circuit decision in a bky case, about 3 things required for appellate ct to hear an appeal of an interlocutory order: Just because an order was ‘final’ for an appeal in district court doesn’t mean there is jurisdiction for a second appeal if the district court remands. Ninth Circuit Covers the 3 ‘Hooks’ for Appellate Jurisdiction over Interlocutory Orders As demonstrated by an opinion from the Ninth Circuit, the fact that the district court had appellate jurisdiction over a final order doesn’t necessarily mean that…
Evolution Credit Partners v. First Brands Group LLC (In re First Brands Group LLC), 26-73 (S.D. Tex. Jan. 31, 2026)
Cash Collateral Motions Can’t Rule on the Validity/Invalidity of a Secured Claim So long as the lender has made a prima facie showing of lien validity, the lender is entitled to adequate protection, a Houston district judge says. If a secured creditor makes a prima facie showing that the security interest in valid, the creditor “is entitled to adequate protection [for the use of cash collateral] until an adversary proceeding determines the validity, extent, and priority of the asserted property interest,” according to an appellate ruling by District Judge Lee H. Rosenthal of Houston. Judge Rosenthal’s January 31 opinion means…
Coney Island Auto Parts Unlimited Inc. v. Burton
Coney Island Auto Parts Unlimited Inc. v. Burton Coney Island Auto Parts Unlimited Inc. v. Burton, 24-808 (U.S.Sup. Ct. Jan. 20, 2026): This 1/20/26 US Supreme Court decision–, which puts a time limit of “a reasonable time” to move, pursuant to FRCP Rule 60(b)(4), to set aside a void US District Court judgment, will also apply in Bankruptcy Court. This is because in Bankruptcy Court, FRBP Rule 9024 (relief from judgment or order) states that FRCP Rule 60 applies, except for the few exceptions stated in FRBP Rule 9024(a)(1), (2) & (3). Here is analysis of this US Supreme Court…
In re Vaughan, ___-bk-___ (Bankr. Court S.D. Ohio Jan. 2, 2026), bankruptcy case no. 25-31806:
Because dismissal under Section 521(i)(1) is automatic and does not result from an order, there’s no rule to vacate dismissal for excusable neglect. One of the BAPCPA amendments in 2005, Section 521(i)(1), is unforgiving. If a chapter 13 case is dismissed automatically for failure to file all required papers within 45 days, the bankruptcy court has no power to set aside dismissal under the Bankruptcy Code or the Bankruptcy Rules, for reasons explained in a January 2 opinion by Bankruptcy Judge Tyson A. Crist of Dayton, Ohio. With counsel, the debtor filed a skeletal chapter 13 petition. The court entered…
Reduction in Regulation/Supervision/Oversight of “Payday” Loans
Credit & Collection e-newsletter of 12/23/25 reports reduction in regulation/supervision/oversight of “payday” loans (also known as “paycheck loans”, and “payday advance” loans). That reduction in regulation/supervision/oversight of “payday” loans creates a BIG RISK to people taking out such “payday advance” loans, to survive until their next paycheck, because the loan documents will not be clear regarding what interest rate/fees the lenders are charging on such loans: Here is the article: The CFPB has issued a new advisory opinion saying that most “earned wage” or paycheck advance products are not covered by the federal Truth in Lending Act (TILA), meaning many…