February 17, 2022
Ordinary Excuses Won’t Justify Plan-Filing Delays in Subchapter V
A fight between creditors justifies granting a Subchapter V debtor more time to file a plan, Judge Lane says.
2nd Circuit, New York, New York Southern DistrictFebruary 16, 2022
Consent Orders Strictly Enforced in the Fifth Circuit, Even if the Result Is Unreasonable
Although averse to third-party releases in chapter 11 plans, the Fifth Circuit will allow bankruptcy courts to enforce releases given by one third party to another.
5th CircuitFebruary 15, 2022
District Court Says Chapter 13 Trustee Is Paid Even if Dismissal Precedes Confirmation
District judge in Idaho finds no ambiguity in a statute that doesn’t explicitly say whether a chapter 13 trustee is paid if the case is dismissed before confirmation.
9th CircuitFebruary 14, 2022
Chapter 13 Can Shield Preferences from Recovery
So long as the debtor is paying unsecured creditors what chapter 13 requires, the debtor is not obliged to pursue preferences.
7th Circuit, Illinois, Illinois Southern DistrictFebruary 11, 2022
Chapter 13 Plan that Cures Arrears Pays Interest on Unpaid Principal, Judge Faris Says
Interest, if any, due on arrears cured under a plan derives from the loan documents and state law.
9th Circuit, HawaiiFebruary 10, 2022
Costs of a Disciplinary Proceeding Again Held Nondischargeable Under Section 523(a)(7)
Seventh Circuit says that costs incurred by disciplinary authorities are not in compensation for ‘actual pecuniary loss.’
7th CircuitFebruary 09, 2022
Horizontal ‘Gifting’ Approved in Mallinckrodt’s Confirmed Chapter 11 Plan
Mallinckrodt’s nondebtor releases didn’t have the defects that infected Purdue and Patterson.
3rd Circuit, DelawareFebruary 08, 2022
How the Ordinary Course Defense Works When the Supplier Doesn’t ‘Hound’ for Payment
The ‘average-lateness’ test reveals payments that were not made in the ‘ordinary course.’
2nd Circuit, New York, New York Eastern DistrictFebruary 07, 2022
Supplier Socked for $3.5 Million in Preferences Although All Bills Were Paid on Time
Hounding a debtor for payment and shortening credit terms defeated an ‘ordinary course’ defense to a preference.
7th Circuit, Indiana, Indiana Southern DistrictFebruary 04, 2022
Opinion Shows the Fault in Barring Barton Protection When a Case Is Closed
The Eleventh Circuit has subjected its trustees to the risk of expensive litigation in a faraway court unfamiliar with what happened in the bankruptcy case.
11th Circuit, Florida, Florida Southern District