Bankruptcy Law

Gymnast-turned-lawyer who helped expose Nassar is honored, Christine Blasey Ford makes video tribute

A lawyer who was the first woman to publicly accuse gymnastics doctor Larry Nassar of sexual assault has been selected as Sports Illustrated’s Inspiration of the Year.

Dec 12, 2018 2:50 PM CST

Bankruptcy protects Detroit from claims by exonerated youth, judge rules

Detroit is protected from an exonerated youth’s wrongful prosecution suit because of the city’s 2013 bankruptcy, approved in late 2014, a federal judge has ruled. U.S. District Judge David Lawson ruled Tuesday that Davontae Sanford couldn’t recover from the city of Detroit, even though his murder conviction wasn’t vacated until…

Dec 6, 2018 1:32 PM CST

6-carat diamond ring up for auction as lawyer is sentenced for hiding it in bankruptcy

A 6-plus carat diamond engagement ring that led to an Arizona lawyer’s prison sentence is going up for auction. The ring, once intended for the fiancee of Scottsdale lawyer Scott Maasen, will be put up for bid on Dec. 5, the Arizona Republic reports. Maasen admitted in an April guilty…

Nov 20, 2018 2:57 PM CST

Former Dewey CFO released from jail after his current firm pays his $1M fine

Updated: The former chief financial officer of Dewey & LeBoeuf spent the night in jail after missing the first of three payments on a $1 million fine, but was released early Friday morning when his current law firm paid the entire $1 million. Joel Sanders left a New York City…

Nov 15, 2018 12:09 PM CST

Citing potential fraud and mismanagement, Justice Department scrutinizes asbestos trusts

The Department of Justice has been increasing its scrutiny of trusts that are set up to compensate victims of asbestos.

Nov 1, 2018 4:05 PM CDT

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.

Oct 3, 2018 8:15 AM CDT

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.

Aug 16, 2018 4:49 PM CDT

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.

Jul 16, 2018 7:05 AM CDT

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.

Jun 18, 2018 7:10 AM CDT

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 alleged misconduct. The Thirteenth Court of Appeals in Corpus Christi reversed the April 2016 disbarment of Mark Cantu in a…

Jun 15, 2018 12:59 PM CDT

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 money owed for legal work. U.S. Bankruptcy Judge Catherine Bauer issued the order of judgment on Tuesday after the former…

May 24, 2018 1:48 PM CDT

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. The announcement is an indication that the Trump administration is considering making it easier for students to discharge their loans,…

Feb 21, 2018 12:47 PM CST

$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. The five law schools will now receive $150,000 as a result of a bank settlement with the plaintiffs, Erik and…

Jan 24, 2018 7:00 AM CST

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.

Oct 19, 2017 7:00 AM CDT

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 “bad for kids,” and lists three reasons why, report Reuters and CNBC, which posted the letter. First: “Kids like that…

Sep 28, 2017 7:45 AM CDT