Chris Kuhner
- Jun 5, 2018
- 1 min read

9th Circuit holds Court Must Investigate Motive Before Disallowing Votes for Bad Faith

The 9th Circuit Court of Appeals held in a published decision that, under 11U.S.C. §1126(e), a bankruptcy court may not designate claims for bad faith simply because (1) a creditor offers to purchase only a subset of available claims in order to block a plan of reorganization, and/or (2) blocking the plan will adversely impact the remaining creditors. The court held that, at a minimum, there must be some evidence that the creditor is seeking to secure some untoward advantage over other creditors for some ulterior motive.

Recent Posts

See All

9th Circuit Overrules Itself Restoring the Debtor’s Absolute Right to Dismiss their Chapter 13

The 9thCircuit had previously held in In re Rosson that a debtor’s absolute right to dismiss their chapter 13 case was limited and that the bad faith conduct of a debtor was grounds to deny a request

U.S. Supreme Ct. Holds That Chicago Is Not Violating the Automatic Stay by Holding Impounded Cars

In an unanimous decision, the United States Supreme Court reversed a decision of the Seventh Circuit Court of Appeals and resolved a split among the circuits, held that the “mere retention of property

Northern District of California Chapter 7 Trustees Covid-19 Meeting Information and Procedures

This table has the virtual meeting information and preferred procedures by Chapter 7 trustee. (Check your download folder after you click the document.)