⚖ Oral Arguments, with Context

The Ninth Circuit Bankruptcy Appellate Panel hears an appeal arising from the bankruptcy of Ashley Aarons. Patch made a three-million-dollar loan secured by her family trust’s Bel Air property. After default, a Chapter 11 restructuring, conversion to Chapter 7, and foreclosure, the remaining dispute concerned insurance proceeds connected to the property. Under the proposed settlement, the senior lenders would give up one hundred fifty thousand dollars of their claimed first-priority lien for the bankruptcy estate. Ashley said some proceeds covered exempt personal property; the final order required seven thousand five hundred dollars for her. Her father, Julius Aarons, said his junior lien might reach the proceeds and needed a separate lawsuit. The bankruptcy court approved the deal. The questions on appeal are whether Ashley or Julius has standing and whether the court could approve the settlement without first resolving Julius’s lien.

In re Aarons (No. 25-1113) — United States Bankruptcy Appellate Panel of the Ninth Circuit, argued September 10, 2026.