Fourth Circuit says there’s nothing in the Bankruptcy Code requiring ‘anti-fraud’ provisions in a mass tort chapter 11 plan. The appeals court also holds that an ‘asbestos’ plan isn’t filed in bad faith when the plan gives an insurer no more rights than the insurer has under its policy.
A homeowners’ association is not a single asset real estate debtor because the HOA’s income doesn’t come from the common areas but from assessments paid by unit owners.
Bankruptcy Judge Paul Black was affirmed in district court for holding that arbitration of claims for violating the automatic stay would conflict with the centrality of administration in bankruptcy cases.
On a question where the courts are split, Bankruptcy Judge Pamela McAfee sides with the majority and holds that a chapter 13 debtor can’t sell co-owned property.
Long Island’s Judge Grossman warns lawyers that they may be paid nothing if they file chapter 11 cases just to delay a secured creditor, with no legitimate strategy for selling the property, refinancing or confirming a plan.
Bankruptcy courts are divided on whether the calculation of a trustee’s commissions includes distributions made to co-owners of property that the trustee has sold.
