Tag: Class Action

Law Review: Hermann, Jonathan S.- Restoring Bankruptcy’s Fresh Start

Abstract:

The discharge injunction, which allows former debtors to be free from any efforts to collect former debt, is a primary feature of bankruptcy law in the United States. When creditors have systemically violated debtors’ discharge injunctions, some debtors have attempted to challenge those creditors through a class action lawsuit in bankruptcy court. However, the pervasiveness of class-waiving arbitration clauses likely prevents those debtors from disputing discharge injunction violations outside of binding, individual arbitration. This Note first discusses areas of disagreement regarding how former debtors may enforce their discharge injunctions. Then, it examines the types of disputes that allow debtors to collectivize in bankruptcy court.… Read More

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4th Circuit: Gentry v. Siegel- Class Action Proofs of Claim

Summary:

Prior to the filing by Circuit City of a Chapter 11  bankruptcy, Gentry commenced a class action lawsuit against Circuit City, but the class certification was pending at the time the bankruptcy was commenced.  (Three other Named Claimants/Appellants were similarly situated with undecided class certifications.)  The Named Claimants then filed Proof of Claim on behalf of themselves and  “all those similarly situated.”  Circuit City and the Trustee objected to these claims on the basis that the Named Claimants had failed to seek authorization from the court under Rules 914 and 7023 to certify a class and act as the agent for the unnamed class members.… Read More

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