September 03, 2020
Caution: Trusts Under a Plan Might Dissolve Automatically If Not Extended
Language in the documents prevented trusts from dissolving automatically when the trustee missed a deadline for extending the duration of the trusts, Judge Isgur said.
5th Circuit, Texas, Texas Southern DistrictSeptember 02, 2020
Claims Discharged in Chapter 7 Revive If the Case Is Converted to Chapter 13
Courts are split over the effect on claims discharged in chapter 7 if the debtor converts the case to chapter 13.
7th Circuit, Illinois, Illinois Southern DistrictSeptember 02, 2020
Trustee Ordered to Disgorge Fees for Failing to Pay the U.S. Trustee’s Fees
The power to order disgorgement of fees arose under Section 105(a), not from Sections 330 or 331.
2nd Circuit, New York, New York Eastern DistrictSeptember 01, 2020
An Undersecured Lender Can Indirectly Waive the Right to an 1111(b) Election
Agreeing to bidding procedures can waive the right to make the Section 1111(b) election, Judge Hoffman says.
6th Circuit, Ohio, Ohio Southern DistrictAugust 31, 2020
Cramdown Doesn’t Require Strict Enforcement of Subordination, Third Circuit Says
Pragmatic opinion by Circuit Judge Ambro allows cramdown to achieve ‘rough justice.’
3rd CircuitAugust 31, 2020
Fifth Circuit Invalidates Local Chapter 13 Plan Regarding Tax Refunds
Below median debtors are no longer required to turn over tax refunds in excess of $2,000.
5th CircuitAugust 28, 2020
Third Circuit Backtracks; Malice Not Required for Punies on a Dismissed Involuntary
Even when after a finding of bad faith, the court retains discretion to deny punitive damages, Third Circuit says. Compensatory damages are not available if the debtor was failing anyway.
3rd CircuitAugust 27, 2020
Fourth Circuit Stands Alone in Limiting Chapter 13 Plan Modifications
Eleventh Circuit joins the majority of circuits by holding that unforeseen, changed circumstances are not required to modify a chapter 13 plan.
11th CircuitAugust 26, 2020
Tenth Circuit Panel Splits on a Triangular Preference
Tenth Circuit and its BAP follow the same controlling authority but reach opposite results.
10th CircuitAugust 25, 2020
Sanctions of $150,000 Upheld Against Nationwide Consumer Firm
When $50,000 in sanctions were not enough to coerce compliance with the Code and Rules, the Eleventh Circuit upheld $150,000 in sanctions for a second violation.
11th Circuit