Equitable mootness prevents an appellate court from reaching the merits of an appeal. It is a judicially created, prudential doctrine unique to bankruptcy appeals. Specifically, the doctrine applies to appeals from orders confirming chapter 11 reorganization plans (but the circuits are even split on that point).

The outcome of this circuit split will have large implications not only for the creditors filing these stale claims but also for the debtors.

If the Eleventh Circuit’s reasoning is followed, then not only will creditors miss out on an opportunity to be repaid, but the debtor will now have a civil cause of action against the holder the debt.

On the other hand, if the Fourth, Seventh, and Eighth Circuits are followed, holders of time barred debt will be able to continue to assert claims and hope to receive payment. And if this riveting split wasn’t reason enough to follow this case, the Supreme Court just granted cert to Johnson v. Midland.

It’s always a terrible feeling to be late. It can incite panic as you rush to finish a task. Being late by just one day has disqualified mayoral and Presidential candidates from making it onto the ballot. In the bankruptcy context, being a day late can prevent you from escaping from sizable debts. If only you had one day more!