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ABI Journal

July 07, 2023

No Sales Free and Clear of a Lien on a Nondebtor Co-owner’s Interest

Although a court may sell a nondebtor’s interest in jointly owned property, the Ninth Circuit BAP won’t permit selling free and clear of lien on the nondebtor’s interest in the property being sold.

9th Circuit

June 06, 2023

BAP Gives Post-Petition Appreciation to Chapter 7 Estate on Conversion from Chapter 13

In a rising real estate market, chapter 13 debtors risk losing their homes if they sell or convert to chapter 7.

8th Circuit

June 02, 2023

District Judge Reads the Safe Harbor Broadly to Immunize a Leveraged Buyout

Although a stock purchase and a loan payoff were one month apart, a district judge in Indiana found a sufficient nexus to invoke the safe harbor and dismiss a fraudulent transfer suit.

7th Circuit, Indiana, Indiana Southern District

April 21, 2023

A Buyer Is in Good Faith Despite Using Economic Leverage, Fifth Circuit Says

Supposedly nefarious facts aren’t evidence of bad faith if they were disclosed to the bankruptcy judge who nevertheless made a finding of good faith.

5th Circuit

March 30, 2023

Proceeds from Post-Petition Sales Aren’t to Be Turned Over to the Chapter 13 Trustee

Before confirmation, district judge says that a chapter 13 debtor is only required to turn over disposable income to a trustee, not proceeds from a post-petition sale of property.

2nd Circuit, New York, New York Southern District

March 21, 2023

Another Court Won’t Permit a Structured Sale to Eradicate a Homestead Exemption

Subordinated lenders can’t take a ‘haircut,’ give a ‘tip’ to the trustee, sell a home and eradicate the debtor’s homestead exemption.

4th Circuit, North Carolina, North Carolina Western District

February 13, 2023

Sixth Circuit: Nondebtor Releases Are Ok in Chapter 11 but Not in Receiverships

Bound by Dow Corning, which permitted nondebtor releases, the Sixth Circuit had to explain why the same releases are not permissible in equity receiverships.

6th Circuit

February 01, 2023

A UCC Lien on ‘Accounts’ Won’t Attach to a Postpetition Sale of Real Property

Although a UCC lien on ‘accounts’ would attach outside of bankruptcy to proceeds from the sale of real property, Section 552(b) cuts off attachment if the sale occurs after filing

5th Circuit, Texas, Texas Southern District

January 26, 2023

Post-Petition Appreciation in the Value of a Home Goes to Creditors in Chapter 13

Courts are deeply split on a chapter 13 debtor’s ability to keep the appreciation in an exempt home, whether or not the case converts to chapter 7.

8th Circuit, Missouri, Missouri Western District

January 10, 2023

Crypto Customers Don’t Own Their Deposits with Celsius Network, Judge Glenn Says

Applying ordinary contract law, New York judge rules that customers are bound by contracts they haven’t read.

2nd Circuit, New York, New York Southern District