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ABI Journal

September 10, 2021

Civil Penalties for Defrauding Consumers Weren’t Discharged Under Section 1141(d)(6)(A)

Reversing the bankruptcy court, a district judge in New York held that a civil penalty wasn’t discharged even though the fraud wasn’t committed against the government.

2nd Circuit, New York, New York Southern District

September 07, 2021

Chapter 11 Plans May Discharge Post-Confirmation ‘Admin’ Claims, Third Circuit Says

Although Section 1141(d)(1) sets a default rule only discharging claims that arose before confirmation, Circuit Judge Ambro says that a plan may alter the default rule and allow discharge of administrative claims arising after confirmation.

3rd Circuit

August 24, 2021

Who Gets Insurance Proceeds When a Car Is ‘Totaled’ in Chapter 13?

Judge Callaway explains when a debtor keeps insurance proceeds and when it goes to creditors under a chapter 13 plan.

11th Circuit, Alabama, Alabama Southern District

August 23, 2021

Sixth Circuit Erects Barriers to FDCPA Suits by Consumers in a 2/1 Opinion

A statutory violation by itself won’t necessarily give a plaintiff constitutional standing.

6th Circuit

August 18, 2021

Debtors Can’t Easily Glom Uncashed Distribution Checks

Just because a creditor doesn’t cash a distribution check doesn’t mean it’s abandoned and reverts to the debtor.

9th Circuit, California, California Eastern District

August 16, 2021

A Trustee Can’t Always Avoid and Preserve an Unrecorded Mortgage for the Estate

Here’s an example of how state law prevents bankruptcy law from being uniform throughout the U.S.

1st Circuit

August 13, 2021

In ‘Chapter 20,’ Discharged Mortgage Claim Resurrects as Unsecured, EDNY Judge Says

Judge Grossman didn’t abolish ‘chapter 20’ entirely. He required the debtor to treat the subordinate mortgage lender like all other unsecured creditors, even though the debtor’s personal liability to the lender had been discharged in the prior chapter 7 case.

2nd Circuit, New York, New York Eastern District

August 09, 2021

‘Cert’ Petitions Raise Equitable Mootness and Federal Preemption in the Supreme Court

‘Cert’ petitions presenting two bankruptcy issues worthy of review by the Supreme Court will be considered by the justices at the ‘long conference’ on September 27.

Supreme Court

July 30, 2021

Cap on Employee Benefit Claims Is Per Plan, Not Per Debtor, Seventh Circuit Says

The $13,650 cap on priority claims for each employee under an ‘employee benefit plan’ applies to each benefit plan, not to all of an employer’s benefit plans added together, the Seventh Circuit says.

7th Circuit

July 14, 2021

Being an ‘Officer’ Disqualifies Someone from a KERP, New York District Judge Says

Officers are presumptively disqualified from KERPs, “absent a strong showing that they do not perform any significant role in management,” a district judge in New York says.

2nd Circuit, New York, New York Southern District