Bankruptcy

Court Holds There is a Time Limit on Challenging Void Judgments

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The Supreme Court’s recent ruling in Coney Island Auto Parts Unlimited, Inc. v. Burton underscores the significance of adhering to procedural timelines when contesting legal judgments. This case highlights a critical interpretation of Federal Rule of Civil Procedure 60(c)(1), which establishes that litigants must act within a reasonable timeframe to challenge judgments deemed void. The implications of this ruling extend beyond the specifics of the case itself, reinforcing the importance of timely legal action in the judicial process. Background of the Case The dispute originated from bankruptcy proceedings involving Vista-Pro Automotive, LLC, which began over … Read more

Funds Available for Additional Chapter 7 Trustee Payments for FY 2024 Cases

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The Department of Justice (DOJ) has announced that it will provide funds to the Judiciary for additional payments to eligible Chapter 7 bankruptcy trustees for fiscal year 2024. This initiative is part of an ongoing effort to support bankruptcy trustees who play a crucial role in managing bankruptcy cases. Eligible trustees must file payment eligibility certifications to qualify for these payments, which are set at $60 per case under the provisions of 11 U.S.C. ยง 330(e)(4). Understanding the Payment Structure The Bankruptcy Administration Improvement Act of 2020 (BAIA) established a framework for these additional payments, … Read more

Bankruptcy Filings Increase 10.6 Percent

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Recent data indicates a significant rise in bankruptcy filings, highlighting the financial challenges faced by both individuals and businesses. The statistics reveal a 10.6 percent increase in total filings for the year ending September 30, 2025, compared to the previous year. This trend raises important questions about the economic conditions contributing to this surge and its implications for various stakeholders. Overview of Bankruptcy Filings According to the Administrative Office of the U.S. Courts, there were a total of 557,376 bankruptcy filings in the twelve-month period ending September 30, 2025, up from 504,112 cases in the … Read more

Court Debates a Time Limit on Challenging Void Judgments

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On Tuesday, the Supreme Court deliberated on a critical question: whether a party can lose the opportunity to contest a judgment that is deemed void. This issue arose from the case of Coney Island Auto Parts Unlimited, Inc. v. Burton, which highlights the complexities involved in bankruptcy proceedings and the implications of default judgments. The case underscores the tension between the need for finality in judicial decisions and the rights of parties to seek redress when faced with potentially erroneous judgments. The Background of the Case The dispute began when Vista-Pro Automotive, LLC initiated bankruptcy … Read more