Bankruptcy Law

1029 ABA Journal Bankruptcy Law articles.

Sedgwick declares bankruptcy in filing that traces the law firm’s downfall

The move for the dissolved law firm comes just six years after posting more than $200 million in gross revenue.

Bankruptcy court in Montana confirms Chapter 11 plan that pays $20M to clergy abuse victims
The federal bankruptcy court in Montana has confirmed a Chapter 11 plan for the Diocese of Great Falls-Billings that pays $20 million to victims of clergy sexual abuse.
ABA amicus: DC Circuit should reject bankruptcy trustee’s claim on ‘unfinished business’ profits
The American Bar Association has filed an amicus brief arguing that the U.S. Court of Appeals for the District of Columbia Circuit should reject a bankruptcy trustee’s attempt to capture profits earned by law firms from clients previously served by the now-defunct Howrey law firm.
Some bankruptcy judges look for ‘wiggle room’ in student debt cases; law clerks prove instructive
Some bankruptcy judges are showing more flexibility when borrowers seek to cancel student debt.
New ethics trial for disbarred lawyer due to bankruptcy judge’s testimony

A Texas appeals court has ruled that a disbarred lawyer should get a new ethics trial because a court erred by allowing a federal bankruptcy judge to testify about the…

Defunct former firm of Stormy Daniels’ lawyer is ordered to pay $10M to ex-partner

The defunct former law firm of Stormy Daniels’ lawyer, Michael Avenatti, has been ordered to pay $10 million to a onetime partner who claimed the it failed to pay him…

Federal officials consider changing hurdle for student borrowers hoping to erase debt in bankruptcy

The U.S. Department of Education will review whether there is a need to change the way “undue hardship” is evaluated in bankruptcy for student borrowers seeking to erase their loans.

$20M windfall for UC law schools in wrongful foreclosure suit shrinks to $150K

A federal judge has vacated a punitive damages award against Bank of America that gave $20 million to the University of California’s five law schools in a wrongful foreclosure case.

Lawyer who blamed ethics case on mother can’t discharge $500K in student debt, federal judge rules
An Illinois lawyer who claimed his license suspension made it impossible to find appropriate work isn’t entitled to discharge student debt totaling more than $500,000, a Chicago federal judge has ruled.
Boy writes letter advising bankruptcy court that closing Toys R Us would be ‘bad for kids’

A child’s letter to a judge overseeing the Toys R Us bankruptcy asks that the stores remain open.

The handwritten letter, entered into the docket, says closing stores would be…

Mayer Brown isn’t liable for $1.5B error that erased security interest in loan, 7th Circuit holds
Mayer Brown isn’t liable for a paralegal’s error that canceled a security interest in a $1.5 billion loan to General Motors because the law firm didn’t represent the lenders, according to a federal appeals court.
Bankruptcy judge slams Weil Gotshal for ‘distinct lack of billing judgment’

A federal bankruptcy judge in Des Moines, Iowa, has slammed an attorney fee application by Weil Gotshal & Manges and reduced the law firm’s $1 million request by about half.

Puerto Rico seeks bankruptcy-type protection from creditor suits under new Promesa law

Puerto Rico is seeking to halt creditor lawsuits by seeking protection under the new Promesa bankruptcy law for insolvent territories.

Puerto Rico acted Wednesday to seek relief from about $74…

Law deans were unaware of judge’s largesse in wrongful foreclosure case

Some law deans were surprised to learn that a federal bankruptcy judge had decided to give their schools $4 million each in punitive damages awarded in a California couple’s wrongful…

Rural county faces possible bankruptcy after $28M judgment for wrongful convictions

The rural county of Gage County, Nebraska, may have to file for bankruptcy because it can’t afford to pay a $28.1 million judgment to six people who were wrongly convicted…

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