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ABI Journal

April 15, 2021

Holding Impounded Cars Still Might Violate the Automatic Stay, Seventh Circuit Says

Seventh Circuit says that Fulton left open the question of whether holding an impounded car violates Sections 362(a)(4) or (a)(6).

7th Circuit

April 14, 2021

Fourth Circuit Seems to Give the Government a Pass for Violating the Stay

Fourth Circuit expands federal government’s setoff rights under the Treasury Offset Program.

4th Circuit

April 13, 2021

Alabama Judges Narrow Northington to Aid Owners of Pawned Automobiles

Whether there had been a default before the chapter 13 filing was pivotal to the debtor’s right to retain a pawned car.

11th Circuit, Alabama, Alabama Middle District

April 08, 2021

Deeply Subordinated Creditor Barred from Voting or Objecting to Plan Confirmation

Subordination agreement did not transfer voting rights, but prudential standing nevertheless barred the subordinated creditor from participating in confirmation, Judge Somers says.

10th Circuit, Kansas

April 07, 2021

Creditor Filing Time-Barred Claims Is Hit with Debtor’s Attorneys’ Fees

The Supreme Court’s Midland Funding opinion was no defense to invocation of a Nevada statute shifting fees and compelling the creditor to pay the debtor’s costs in expunging stale claims.

9th Circuit, Nevada

April 06, 2021

Undisclosed Assets Revest in the Debtor After Dismissal but Not After Closing, BAP Says

If a case is dismissed, all assets revest in the debtor and nothing remains in the bankruptcy estate, not even undisclosed assets.

9th Circuit

March 23, 2021

Third Circuit Rejects Triangular Setoffs and Adopts Rationale by Judge Shannon

A triangular setoff valid under state law does not satisfy the mutuality requirement in Section 553(a).

3rd Circuit

March 04, 2021

Courts Are Split on Whether Counsel Fees Are Considered in the Chapter 13 Best Interests Test

Deferred payments to unsecured creditors in a chapter 13 plan must equal the present value of the distributions required by the best interests test, Judge Halfenger says.

7th Circuit, Wisconsin, Wisconsin Eastern District

March 03, 2021

Second Circuit Ducks a Critical Vendor Appeal

An appeal from a critical vendor order was dismissed as equitably moot.

2nd Circuit

February 24, 2021

Bankruptcy Settlement Didn’t Discharge All Environmental Claims, New York Judge Says

Due process considerations persuaded District Judge Oetken to conclude that a creditor’s claims, unknown at the time, were not barred by a settlement.

2nd Circuit, New York, New York Southern District