The Bankruptcy Law Firm, Prof. Corp.
Official Committee of Asbestos Claimants of Bestwall LLC v. Bestwall LLC (In re Bestwall LLC)
Official Committee of Asbestos Claimants of Bestwall LLC v. Bestwall LLC (In re Bestwall LLC), 24-1493 (4th Cir. Oct. 30, 2025) Speculation among bankruptcy lawyers nationwide is whether this case result in US Supreme Court granting a petition for certiorari on whether a solvent corporation can file bankruptcy, or whether only an insolvent corporation can file bankruptcy: By a vote of 8/6, the Fourth Circuit denied rehearing en banc on the question of whether federal courts only have subject matter jurisdiction over insolvent debtors. Over a dissent, the Fourth Circuit held on August 1 that the bankruptcy court has subject…
Keathley v. Buddy Ayres Construction Inc., 25-6 (Sup. Ct.)
Keathley v. Buddy Ayres Construction Inc., 25-6 (Sup. Ct.).The US Supreme Court granted certiorari to resolve a circuit split on the standard to employ before invoking judicial estoppel when a chapter 13 debtor failed to disclose a personal injury claim. The date for oral argument has not been set, but the case should be heard in time for a decision before the end of the term in June. The case came to the Supreme Court from the Fifth Circuit, where invocation of judicial estoppel only requires a “plausible” motive for failure to disclose a personal injury claim. One of the…
In re Sun, __BR__24-20581 (Bankr. D.N.J. Sept. 29, 2025)
Bankruptcy Judge Meisel implores the Third Circuit to follow other circuits on dismissing bad faith debtors’ chapter 13 petitions but with bars to refiling. Regarding the right of a chapter 13 debtor to dismiss a case filed in bad faith, Bankruptcy Judge Stacey L. Meisel of Newark, N.J., said it all in the second paragraph of her opinion: A Chapter 13 Debtor possesses an absolute right to dismiss his bankruptcy case . . . even if the debtor acts in bad faith. However, this does not mean that a debtor gets a free pass to abuse the bankruptcy process. A…
American Bankruptcy Institute 10/9/25 e-newsletter reports Personal Bankruptcy Filings Soar Amid ‘Mounting Financial Pressure’
The number of individuals filing for bankruptcy has soared thus far in 2025, reflecting growing financial pressures and pessimism among Americans about their economic security, Newsweek reported. According to a report from the ABI, based on figures from data and analytics platform Epiq AACER, there were 249,152 individual chapter 7 bankruptcy filings — the most common type of personal bankruptcy — during the first nine months of 2025. This represents a 15 percent increase over the 216,773 filed in the same period last year. Epiq AACER linked the rise to the “mounting financial pressure” faced by Americans in 2025, reflected…
In re Joiner, 25-30396 (Bankr. W.D.N.C. Sept. 2, 2025)
In re Joiner, 25-30396 (Bankr. W.D.N.C. Sept. 2, 2025) is a fascinating new Bankruptcy Court decision about the interplay of 11 USC 1190(3)—which is one of the Bankruptcy Code provisions specific to SubV Chapter 11 bankruptcy cases–and 11 USC 1111(b). This case is significant because many bankruptcy attorneys are not aware 11 USC 1190(3) exists, much less how it interfaces with 11 USC 1111(b) Contrary to the language in Section 1190(3), the bankruptcy court did not allow bifurcation of a lien that wasn’t used to acquire a home but was used for the debtor’s small business. In Subchapter V of…
Many Banks are suffering Multi-Million Dollar Loses Due to Auto Lender Tricolor filing Chapter 7 Bankruptcy
Credit & Collection e-newsletter of 9/11/25 reports that Many Banks are suffering Multi-Million Dollar Loses Due to Auto Lender Tricolor filing Chapter 7 Bankruptcy Key Insight: Tricolor’s business model differed from other auto finance companies, which could have contributed to its problems. What’s at Stake: It’s unclear how many more lenders may take losses due to connections with Tricolor, or on subprime auto loans. Forward Look: A former Tricolor lawyer said the federal government is investigating the situation for alleged fraud. UPDATE: This story includes information from the FBI’s response to a request for comment. A subprime auto lender’s bankruptcy…
Ramona D. Elliott to serve as Acting Director of the Justice Department’s U.S. Trustee Program (USTP)
American Bankruptcy Institute reports, that on 8/29/25, Attorney General Pamela Bondi has selected Ramona D. Elliott to serve as Acting Director of the Justice Department’s U.S. Trustee Program (USTP), the Justice Department announced today. Elliott has 31 years of federal service, the majority of which has been with the USTP. Since 2011, she has served as Deputy Director and General Counsel for the Executive Office for U.S. Trustees in Washington, D.C. As the USTP’s chief legal officer, she has overseen the formulation of the USTP’s national legal policies in consumer and business cases as well as litigation strategies in significant…
U.S. Sees Highest Large-Company Bankruptcies In 15 Years With 446 Filings:
Credit & Collection e-newsletter of 8/21/25 reports that the United States has recorded 446 large company bankruptcy filings in the first seven months of 2025, the highest year-to-date total in 15 years. The tally, compiled by the Kobeissi Letter and S&P Global Market Intelligence, represents a 12% increase above levels seen during the 2020 pandemic year. Per the Kobeissi Letter, the number of bankruptcies has already surpassed full-year totals for 2021 and 2022, when 405 and 373 firms, respectively, filed for court protection. More data shows that July alone accounted for 71 bankruptcies, up from 66 in June, and the…
Hayes v. United States of America (In re Applied Machinery Rentals, LLC)
Hayes v. United States of America (In re Applied Machinery Rentals, LLC), 2025 WL 1297432 (April 30, 2025, Bankruptcy Ct, Western District of North Carolina ): The Bankruptcy Court for the Western District of North Carolina (the Court) recently ruled that a chapter 7 trustee could use Bankruptcy Code §§ 548 and 550 to recover from the Internal Revenue Service (IRS) taxes which had been paid on behalf of the Debtor’s principal with property of the estate. It held that the IRS was the initial transferee even though the payment came from a bank account in the principal’s name and…
Brown v. Thermal Surgical LLC, 24-127 (2d Cir. Aug. 8, 2025)
US Court of Appeals for the Second Circuit barred offensive use of claim preclusion based on ‘fairness’ , and hinted that offensive claim preclusion might never be permitted. Second Circuit held that a creditor may not use an uncontested claim allowance in an offensive use of claim preclusion if it would be “unfair.” In her August 8 opinion, Circuit Judge Beth Robinson stopped short of deciding whether offensive claim preclusion is never permissible. If offensive claim preclusion were squarely present, she hinted that it might never be allowed. Uncontested Claim Allowance The debtor had been a sales representative for his…