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ABI Journal

October 18, 2019

Courts Split on Allowing a Late Claim if the Creditor Was Not Listed

Bankruptcy Judge Elizabeth Brown of Denver differs with Bankruptcy Judge Michelle Harner of Baltimore on the interpretation of Bankruptcy Rule 3002(c)(6).

10th Circuit, Colorado

October 17, 2019

In Chapters 7 and 13, ‘Excusable Neglect’ Won’t Always Justify Filing a Late Claim

A creditor without knowledge of bankruptcy isn’t always entitled to file a late claim in chapters 7, 12, and 13, Judge Harner says.

4th Circuit, Maryland

October 11, 2019

‘Holder Rule’ Protects Debtors from Claims by Subsequent Holders of Consumer Paper

Holder in due course of consumer paper remains subject to the debtor’s claims against the originator of the paper.

5th Circuit, Texas, Texas Northern District

October 07, 2019

Debtors’ Attorneys Are Paid in Chapter 13 Before Secured Creditors

Indiana bankruptcy and district judges rule that secured lenders are only entitled to ‘adequate protection’ until the debtor’s counsel’s allowed fees have been paid in full.

7th Circuit, Indiana, Indiana Southern District

October 04, 2019

Separate Classification of a Child’s Student Loan Barred in a Chapter 13 Plan

Factors in permitting separate classification of debts include moral obligation and tangible benefit.

4th Circuit, North Carolina, North Carolina Eastern District

September 30, 2019

First Circuit PROMESA Opinion Addresses the Automatic Stay and Trust Funds

Appeals court says that the bankruptcy court must always address the existence of a trust when ruling on a motion to modify the automatic stay.

1st Circuit, Puerto Rico

September 26, 2019

Another Court Limits ‘Related To’ Jurisdiction Based on Indemnification Claims

W.R. Grace makes more law on channeling injunctions.

3rd Circuit, Delaware

September 24, 2019

Section 505(a) Doesn’t Confer Jurisdiction to Determine Amount of a Tax, Circuit Says

Seventh Circuit splits with other circuits on basis for jurisdiction to determine the amount of a tax.

7th Circuit

September 20, 2019

BAP Decision Previews Issues Confronting the Supreme Court in Ritzen

Professing to follow Ritzen, Sixth Circuit BAP reverts to a more pragmatic approach to ‘finality.’

Supreme Court

September 19, 2019

Sometimes, a Claim Purchaser Can’t File a Claim, Delaware Judges Say

Judges Stark and Carey from Delaware distinguish between prohibiting the power and the right to assign a claim.

3rd Circuit, Delaware