September 14, 2023
College Tuition Made a Debtor Ineligible for Chapter 7
Chapter 7 can be inaccessible for a married debtor living in the same household with a nonfiling spouse who has substantial income.
1st Circuit, MassachusettsSeptember 13, 2023
Rising Home Values and Chapter 13: A Deepening Split
When, post-confirmation, a chapter 13 debtor sells his or her home, who gets the benefit of the appreciation: the debtor, or his or her creditors? Judge Randon in Michigan adopted the so-called “estate replenishment approach” and held that sale proceeds derived from post-confirmation appreciation of a home belong to the debtor.
6th Circuit, Michigan, Michigan Eastern DistrictSeptember 12, 2023
Deferred Settlement Agreements Aren’t Executory Contracts and Can’t Be Assumed
The Ninth Circuit BAP affirms that a deferred settlement agreement can’t be assumed under Section 365.
9th CircuitSeptember 11, 2023
Sixth Circuit Holds that Constitution Requires Hearing Within Two Weeks of Vehicle Seizure
In addressing Michigan county’s car-seizure and forfeiture practices, Sixth Circuit sets a clear benchmark for debtors.
6th CircuitSeptember 08, 2023
Coercive Contempt Sanctions Upheld by Second Circuit Under Inherent Authority
Court’s inherent authority to sanction allows coercive contempt sanctions where rules and statutes are not up to the task.
2nd CircuitSeptember 07, 2023
Stop Punishing the Innocent: Congress Should Fix the Doll/Evans Problem
What will become of the chapter 13 system if standing trustees must refund all fees collected in cases dismissed before confirmation? The answer is perhaps unexpected: Unsecured creditors in confirmed chapter 13 cases will pay the administrative expenses of cases that fail.
9th CircuitSeptember 06, 2023
Contesting the Election of a ‘Permanent’ Trustee Is Compensable, Judge Goldblatt Says
Contesting the election of a chapter 7 trustee isn’t like defending a fee application, which Baker Botts held to be noncompensable.
3rd Circuit, DelawareSeptember 05, 2023
Payments Were Preferences Even Though They Were Made with Insurance Proceeds
A preference opinion from Houston counsels creditors to be cautious when they are expecting payment from insurance.
5th Circuit, Texas, Texas Southern DistrictSeptember 01, 2023
If Bankruptcy Occurs on the Eve of Trial, Is There ‘Cause’ to Modify the Stay?
Delaware’s Judge Craig Goldblatt makes a ‘common-sense judgment’ in deciding whether to allow a prepetition lawsuit to proceed in state court.
3rd Circuit, DelawareAugust 31, 2023
A RICO Case Shows that Final Fee Allowances Don’t Confer Immunity
The RICO suit by Jay Alix Against McKinsey mostly survived a motion to dismiss.
2nd Circuit, New York, New York Southern District