ATexasBankruptcyLawyersBlog

Chapter 11 Trustee Recovers Enhanced Lodestar for Superior Result

08/11/22

 Bankruptcy trustees often perform a thankless job, scrubbing through thousands of no-asset files looking for that one case that will earn them a sizeable commission. While Chapter 7 trustees are paid a commission on funds distributed to creditors, compensation for Chapter 11 trustees more closely resembles an hourly fee engagement. A recent case from Judge Tony Davis of the Western District of Texas illustrates how the two forms of compensation may dramatically differ. In re WC Met Center, LLC, Case No. 21-10698 (Bankr. W.D. Tex. 7/15/22).

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Another Alex Jones Entity Seeks Bankruptcy Protection

07/31/22

 Faced with pending trials to establish liability for defamation, another Alex Jones entity has decided to test the waters of bankruptcy. On Friday July 29, 2022, Free Speech Systems, LLC, the company which actually produces the Alex Jones Show and his other programming, filed a petition under Subchapter V of Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Victoria Division. Case No.

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Nevertheless, FERC Persisted

07/22/22

When U.S. Sen Elizabeth Warren continued to speak at the confirmation hearing for AG Jeff Sessions after being cautioned by Majority Leader Mitch McConnell, it gave rise to the feminist slogan, "Nevertheless, she persisted." A new opinion from the Fifth Circuit adapts that slogan to the Federal Energy Regulatory Commission's attempts to prevent debtors from rejecting regulatory energy contracts. Judge Jerry Smith's opinion in Case No.

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What Is the Difference Between Clerical and Compensable?

06/08/22

 A short order crossed my desk the other day in In re Preferred Ready-Mix, Case No. 21-33369 (Bankr. S.D. Tex. 6/6/22), Dkt. #207. A creditor filed an application for administrative expense. No one objected. However, the Court reduced the fees requested by $73.50 to reflect time spent electronically filing documents. While this little case involves much smaller dollars than the Supreme Court opinion in Siegel v. Fitzgerald, No. 21-411 (U.S. 6/6/22), which came out the same day, it will affect many more cases.

A Little Background

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Judge Jernigan Debuts Her Second Novel

06/08/22

Judge Stacey C.G. Jernigan is best known for the writing she publishes from her office at 1100 Commerce Street. I was able to locate 270 of her opinions on LEXIS. Some of my favorites are In re Tinsley, 2010 Bankr. LEXIS 4156 (Bankr. N.D. Tex. 20100 about a cowboy trying to keep the ranch he inherited from his father and In re Pearson, 2020 Bankr. LEXIS 972 (Bankr. N.D. Tex. 2020) in which Judge Jernigan cited an article that I wrote. Lee v. Weatherford (In re Weatherford), 2022 Bankr. LEXIS 144 (Bankr. N.D. Tex.

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Fiffth Circuit Restricts Rooker-Feldman Doctrine Allowing Race to the Courthouse

06/05/22

The Fifth Circuit has issued a new decision restricting application of the Rooker-Feldman doctrine and repudiating a prior precedent.  Miller v. Dunn, Case No. 20-11054 (5th Cir. 6/2/22), which can be found here. Under the new rule, which brings the Fifth Circuit in line with other courts, Rooker-Feldman does not apply to a state court decision which is the subject of a pending appeal.

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Judge Michael Parker Addresses the Dead Debtor Problem

06/02/22

 While it is not pleasant to contemplate, sometimes a debtor passes away before his case is completed. This raises the question of whether the case can go to completion and how to complete the financial management class. Judge Michael Parker addressed this issue in one of his first published opinions as a judge. (This is actually his third opinion, but the first one that I had the time to write about).  In re Ibarra, Case No. 19-52413 (Bankr. W.D. Tex.

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Opinion Illustrates Distinction Between Good Practices and Sec. 727 Violation

05/26/22

 No attorney wants to see his name mentioned prominently in an opinion. However, if it has to happen, it's better if its something like this:  "Chance McGhee is an experienced and competent attorney that has practiced consumer bankruptcy law for many years." Adv. No. 21-5036; Wilson v. Silva (In re Silva) (Bankr. W.D. Tex. 5/19/2022).  The opinion can be found here. As the opinion lays out, Mr.

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Alex Jones: The Bankruptcy Prequel

04/23/22

 While Alex Jones has created a lot of controversy through his decision to play three of his entities into voluntary bankruptcy, this was not his first brush with bankruptcy. In 2020, his ex-wife, Kelly R. Jones, initiated an involuntary bankruptcy petition against him. In re Jones, Case No. 20-10118 (Bankr. W. D. Texas). Ms. Jones filed the petition pro se, meaning that she did not have a lawyer. The case was dismissed after the bankruptcy court determined that Ms. Jones was not an unsecured creditor.

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Next Phase of Alex Jones Bankruptcy Gamit Unfolds

04/21/22

When Alex Jones filed bankruptcy for three of his entities holding intellectual property and contract rights, it wasn't immediately clear how these filings would help him resolve his larger legal problems. Now it has unfolded that Mr. Jones is using the bankruptcy filings as a vehicle for removing state court actions against him to federal court.  On April 18, 2022, attorneys for the Debtors removed eight state court lawsuits to U.S. Bankruptcy Court: five in Texas and three in Connecticut. 

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