In Insight Terminal Solutions, LLC v. Cecelia Financial Management (In re Insight Terminal Solutions, LLC), 148 F.4th 869 (6th Cir. 2025), the Sixth Circuit reversed a bankruptcy court’s exclusion of deposition testimony in a debt-versus-equity recharacterization dispute. While the majority resolved the appeal on evidentiary grounds, Judge Eric Murphy’s concurrence questioned whether bankruptcy courts have any federal authority to recharacterize loans as equity.