Bankruptcy Law Section

The Bankruptcy Law Section focuses on issues involving bankruptcy law. The section’s executive committee develops projects for its members ranging from legislative proposals to their annual two-day Bankruptcy Forum and associated social events.

Scarborough & Fulton
701 Market St #1000
Chattanooga, TN 37402
Immediate Past Chair
Sherrard Roe Voigt & Haribson
150 3rd Ave S #1100
Nashville, TN 37201

Court: Bankruptcy No Shield for GM Ignition Switch Claims

The U.S. Second Circuit Court of Appeals today struck down bankruptcy decisions that shielded General Motors from liability related to ignition switch defects, Reuters reports. The court found that a 2009 sale of the automakers’ assets, which provided the company with legal cover, violated potential victims’ rights to due process. The ruling effectively rebuffs GM’s attempts to block hundreds of customer lawsuits over faulty ignition switches that led to criminal charges and prompted the recall of 2.6 million vehicles in 2014.

read more »

Bar Foundation to Get $8.5M from Mortgage Settlement

The Tennessee Bar Foundation is slated to receive $8.5 million as part of the settlement between Bank of America and the U.S. Department of Justice, WMC-TV reports. The funds are to be used to provide legal assistance in foreclosure prevention and community redevelopment. Eric D. Green, the independent monitor of the settlement, announced the news today. The foundation is one of 56 state-based legal-assistance organizations receiving funds under the deal, which settled legal claims arising from mortgage-related activities by Bank of America and its subsidiaries. Learn more about the settlement.

read more »