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ABI Journal

Rochellel's Daily Wire

November 06, 2020

Fifth Circuit Upholds Constitutionality of Increase in U.S. Trustee Fees

Dissenter in the Fifth Circuit believes that having both U.S. Trustees and bankruptcy administrators violates the Uniformity Clause.

5th Circuit

November 02, 2020

Debt of an Ineligible Affiliate Is Included in the $7.5 Million Cap for Subchapter V

Although ineligible on its own to be a debtor under subchapter V of chapter 11, the debt of the ineligible company is nonetheless aggregated with the debts of its affiliates to determine whether affiliates are eligible for subchapter V.

5th Circuit, Mississippi, Mississippi Northern District

October 30, 2020

Judge Isgur Sides with the Third Circuit and Allows Makewhole Premiums

Creditors are entitled to ‘default interest’ when the debtor is solvent.

5th Circuit, Texas, Texas Southern District

October 29, 2020

Houston Judge Rejects Tenth Circuit Opinion Immunizing Subsequent Transferees

Proceeds from fraudulently transferred property can be recovered from subsequent transferees, Judge Rodriguez says, differing with the Tenth Circuit’s Generation Resources opinion.

5th Circuit, Texas, Texas Southern District

October 28, 2020

Fifth Circuit Allowed an Extension of the Discharge Deadline After the Deadline Had Passed

The equitable power under Section 105(a) permits extending the discharge objection deadline when the court makes a mistake.

5th Circuit

October 27, 2020

Texas Mineral Liens May Be Modified in a Subchapter V Cramdown Plan

A cramdown plan can reduce the collateral coverage for secured creditors.

5th Circuit, Texas, Texas Southern District

October 15, 2020

Fifth Circuit Again Says: No ‘Futility Defense’ Under the Texas UFTA

Following the answer by the Texas Supreme Court to a certified question, the Fifth Circuit again rules that an inability to discover fraud won’t absolve a transferee from the duty to investigate suspicions of fraud.

5th Circuit

October 14, 2020

‘13’ Plans Already in Default on March 27 May Be Extended Under the CARES Act

Judge Grabill finds nothing in Section 1329(d) to preclude extending the duration of a plan if payments were already in default when the CARES Act was enacted on March 27.

5th Circuit, Louisiana, Louisiana Eastern District

September 29, 2020

Surety Bonds Aren’t Executory Contracts and Can’t Be Assumed Even if They Are

Insurance companies must nail down the treatment of performance bonds before plan confirmation.

5th Circuit, Louisiana

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 District