June 10, 2019

Bankruptcy Judge Says Espinosa Overrules Eleventh Circuit Precedent

A chapter 13 plan that improperly modifies a home mortgage remains binding unless the lender has objected to confirmation.

11th Circuit, Florida, Florida Southern District

June 06, 2019

Electric Utility’s Customers Denied Official Committee Status in Chapter 11

Are utility customers entitled to an official committee because they will fund the reorganization plan? Judge Montali says ‘no.’

9th Circuit, California, California Northern District

May 29, 2019

Fourth Circuit Eliminates a Split on Modifying Short Term Mortgages in Chapter 13

Joining two other circuits, the Fourth Circuit now permits a chapter 13 debtor to strip down a short term home mortgage to the value of the property.

4th Circuit

May 23, 2019

Reconstructed Time Records Are Ok in a POC for Pre-Filing Attorneys’ Fees

Rule 3001 doesn’t require time records in a mortgage lender’s proof of claim, Judge Loyd says.

10th Circuit, Oklahoma, Oklahoma Western District

May 22, 2019

‘Earmarking’ Only Applies When a Debtor Receives a Loan from a Third Party

Money taken from a debtor’s own retirement account to pay a creditor does not qualify for the earmarking defense, Chief Judge Fehling says.

3rd Circuit, Pennsylvania, Pennsylvania Eastern District

May 21, 2019

Supreme Court Agrees to Rule on What Is or Is Not a ‘Final, Appealable’ Order

For now, the high court ducks an important automatic stay question for chapter 13 debtors.

Supreme Court

May 13, 2019

Malicious Theft of Trade Secrets Doesn’t Result in Nondischargeability, Circuit Says

Egregious behavior doesn’t always result in nondischargeability for willful and malicious injury.

4th Circuit

May 10, 2019

Disclosing an Asset in the Wrong Place Won’t Invoke Judicial Estoppel, Circuit Says

Second Circuit won’t give a defendant a windfall if the debtor scheduled the lawsuit in the wrong place but told the trustee and the court.

2nd Circuit

May 03, 2019

A Cash Collateral Carveout Doesn’t Automatically Make a Bank Liable for Fees

Bankruptcy Judge Lloyd limits a recent Sixth Circuit opinion to its facts in holding that a bank was not liable to pay professional fees from a cash collateral carveout.

6th Circuit, Kentucky, Kentucky Western District

April 29, 2019

Disciplinary Sanctions Held Nondischargeable Even Though Not Paid to the State

The Ninth Circuit BAP follows Kelley, even though the panel implies that the Supreme Court tortured the language in Section 523(a)(7).

9th Circuit