Legislative Highlights September 2025
Legislative Highlights GENIUS Act Signed into Law to Provide Framework for Stablecoins President Donald J. Trump on July 18 signed the “Guiding and Establishing National Innovation for U.S. Stablecoins Act” (GENIUS Act; Public Law No. 119-27 1) into law to establish a
Proceedings for Contempt of a State Court Order Weren’t Stay Violations, BAP Says
An individual debtor conceded that being jailed for violation of a prepetition state court injunction wasn’t an automatic stay violation.
A Disappointed Bidder Didn’t Have Prudential Standing in a Chapter 7 Case
In a chapter 7 case, a disappointed bidder wasn’t required to show Article III standing but was still required to demonstrate prudential standing as falling within the class of persons protected by Section 363.
Disgorgement Was the Remedy for Failure to Disclose a Post-Petition Retainer
Disclosing a post-petition retainer in a monthly operating report wasn’t a substitute for disclosure required by Rule 2016(b)(2).
Allowed Claim Can’t Be Used Offensively, Second Circuit Says
Second Circuit barred offensive use of claim preclusion based on ‘fairness’ but hinted that offensive claim preclusion might never be permitted.
Rite Aid: A Chapter 22, the Automatic Stay and Social Costs
Retailers everywhere appear to be filing chapter 22 — even chapter 33 — bankruptcies. This results in multiple litigation questions, the most recent of which pertain to Rite Aid.
No Substitutes for a Stay Pending Appeal to Avoid Mootness of a Sale Order
The appeal involved the sale of defensive appellate rights but wasn’t grounds for the decision by the Eighth Circuit.
The New Value Corollary to the Absolute-Priority Rule Codified for Individuals in Chapter 11
The New Value Corollary to the Absolute-Priority Rule Codified for Individuals in Chapter 11 By Donald L. Swanson The absolute-priority rule has always prevented individuals from reorganizing under chapter 11. The absolute-priority rule is a chapter 11 plan-confirmation
Second Circuit Courts Narrowly View Finality of Bankruptcy Appeals
A district court in New York holds that denial of a settlement motion is not final and not appealable.
Comparative Fault Doesn’t Require Reduced Attorneys’ Fees for Discharge Violations
Seventh Circuit holds that comparative fault requires a reduction in compensatory damages for a discharge violation but not for a debtor’s attorneys’ fees.