August 26, 2021
Subchapter V Trustee Removed for an Undisclosed Conflict of Interest
Although disqualified and removed for an undisclosed conflict, the trustee was not removed in all other cases.
11th Circuit, Florida, Florida Middle DistrictAugust 25, 2021
Selling Assets of a Defunct Business Is a Legitimate Activity in ‘Sub V,’ Florida Judge Says
The oversight of a distribution by a chapter 7 trustee (and the attendant expense) isn’t required when a debtor liquidates the assets in Subchapter V of chapter 11.
11th Circuit, Florida, Florida Middle DistrictAugust 24, 2021
Who Gets Insurance Proceeds When a Car Is ‘Totaled’ in Chapter 13?
Judge Callaway explains when a debtor keeps insurance proceeds and when it goes to creditors under a chapter 13 plan.
11th Circuit, Alabama, Alabama Southern DistrictAugust 23, 2021
Sixth Circuit Erects Barriers to FDCPA Suits by Consumers in a 2/1 Opinion
A statutory violation by itself won’t necessarily give a plaintiff constitutional standing.
6th CircuitAugust 20, 2021
A Lender Is Entitled to Demand a Change in Management, Fifth Circuit Says
It isn’t duress when a lender threatens to take action that the loan agreement allows, the circuit court says.
5th CircuitAugust 19, 2021
First Circuit Dismisses as Moot Even Though the Appeal Dealt with Payment of Money
Dismissal of a chapter 13 case moots an appeal regarding an allegedly erroneous order directing payment of money.
1st CircuitAugust 18, 2021
Debtors Can’t Easily Glom Uncashed Distribution Checks
Just because a creditor doesn’t cash a distribution check doesn’t mean it’s abandoned and reverts to the debtor.
9th Circuit, California, California Eastern DistrictAugust 17, 2021
Congress Must Decide: May Chapter 13 Debtors Contribute to 401(k) Plans?
Courts are split on whether chapter 13 effectively prohibits debtors from making voluntary contributions to 401(k) plans.
6th CircuitAugust 16, 2021
A Trustee Can’t Always Avoid and Preserve an Unrecorded Mortgage for the Estate
Here’s an example of how state law prevents bankruptcy law from being uniform throughout the U.S.
1st CircuitAugust 13, 2021
In ‘Chapter 20,’ Discharged Mortgage Claim Resurrects as Unsecured, EDNY Judge Says
Judge Grossman didn’t abolish ‘chapter 20’ entirely. He required the debtor to treat the subordinate mortgage lender like all other unsecured creditors, even though the debtor’s personal liability to the lender had been discharged in the prior chapter 7 case.
2nd Circuit, New York, New York Eastern District