The Ninth Circuit Bankruptcy Appellate Panel (“Panel”) recently held that a Chapter 7 trustee and his professionals receiving "more money than unsecured creditors does not necessarily justify a reduction of a . . . trustee's statutory commission or the professionals'...
In In re Cooper, the Ninth Circuit addressed an issue of first impression: whether the Social Security Administration ("SSA") may recoup social security funds that it overpaid to a beneficiary after a chapter 7 discharge from bankruptcy. This underlying case was...
The airline industry has faced its share of turbulence in recent years, from the COVID-19 pandemic to fluctuating fuel costs and fierce competition. In 2024, Spirit Airlines (“Spirit”) commenced chapter 11 bankruptcy proceedings to implement a new financial structure,...
In Wolverine Endeavors VIII, LLC v. East West Bank, et al. (In re Carole D. King), BAP No. CC-24-1008 (9th Cir. B.A.P. Oct. 29, 2024), the Bankruptcy Appellate Panel of the Ninth Circuit (“BAP”) addressed an issue of first impression: whether, in an involuntary...
In The Lovering Tubbs Trust, et al. v. Hoffman (In re O’Gorman), No. 23-60005 (9th Cir. Sept. 9, 2024), the Ninth Circuit affirmed the Bankruptcy Appellate Panel’s decision that a trustee can avoid a fraudulent transfer under 11 U.S.C. § 548(a)(1) even if creditors...
In re Michael A. Leite (United States of America v. Mackenzie), No. 23-15825 (9th Cir. Sept. 3, 2024), the Ninth Circuit addressed the proper allocation of sale proceeds in a Chapter 7 bankruptcy when the IRS holds a tax lien that includes both unpaid taxes and...
Fraud requires actual or constructive intent, which is a longstanding principle in bankruptcy law. The Ninth Circuit's decision in In re EPD Investment Co., LLC, however, establishes a significant precedent: proof of a Ponzi scheme's existence alone constitutes...
In Rey v. Urquijo (In re Rey), BAP No. CC-23-1120-SGC (March 29, 2024), the United States Bankruptcy Appellate Panel of the Ninth Circuit (“BAP”) affirmed the bankruptcy court’s decision and held that two separate residential structures on a single plot of land, one...
In Issa v. Royal Metal Industries, Inc (In re X-treme Bullets, Inc.), Case No. 22-16143 (February 28, 2024), the Court of Appeals for the Ninth Circuit (“Ninth Circuit”) reaffirmed the long-standing principle that a creditors’ committee can obtain derivative standing...
In Law Finance Group, LLC v. Key, --- P.3d ---, 2023 WL 4168752 (2023), the Supreme Court reversed and remanded the lower courts' decisions, and instead held that the deadline under § 1288.2 for seeking vacatur of an arbitral award is a non-jurisdictional statute of...