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 DistrictSeptember 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 CircuitAugust 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 DistrictAugust 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 CircuitAugust 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 DistrictAugust 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 CircuitAugust 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 DistrictAugust 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 CourtJuly 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 CircuitJuly 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