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ABI Journal

April 02, 2018

Chapter 13 Strip-Off Ok Even if Lienholder Does Not File a Claim, Fourth Circuit Holds

A contrary result would have obviated the judicially recognized right to strip off underwater subordinate liens in chapter 13.

4th Circuit

April 02, 2018

Fifth Circuit Adopts Flexible Timing for Section 1111(b) Cramdown Valuation

Fifth Circuit refuses to adopt chapter 13 valuation timing to chapter 11 cramdowns.

5th Circuit

March 27, 2018

SIPA Bars General Unsecured Claims for Failure to Transfer Accounts Before Filing

The trustee for a bankrupt broker can ignore an individual customer’s request to transfer securities to a solvent broker and may instead transfer customer accounts in bulk.

2nd Circuit, New York, New York Southern District

March 27, 2018

Rule 3001(c)(2)(D) Sanction Was 16 Times the Amount in Controversy

Innocent mistake turns into a $6,000 sanction for ‘willful failure to cooperate.’

10th Circuit, Kansas

March 22, 2018

Court May Depart from the Code When the Debtor Consents and No One Objects

Unique facts were again the basis for a result seemingly at odds with the statute.

2nd Circuit, New York, New York Northern District

March 21, 2018

Federal Common Law of Constructive Trust Works When State Law Won’t

Delaware judge shows sympathy for a creditor being stiffed by the debtor.

3rd Circuit, Delaware

March 16, 2018

Judge Harner Pens a Primer on the Elements of an Executory Contract

Unperformed obligations must be ‘material’ for a contract to be executory.

4th Circuit, Maryland

March 15, 2018

Filed and Unfiled Claims Not Aggregated for Chapter 12 Eligibility, BAP Holds

Courts are split on aggregating filed and non-filed claims in calculating chapter 12 eligibility.

6th Circuit

March 14, 2018

Challenging Student Loans Permissible Six Years after Discharge

Destitute debtor allowed to challenge student loans six years after a chapter 7 discharge.

10th Circuit, New Mexico

March 13, 2018

Unlicensed Debt Collectors May File Proof of Claim Despite State Law

Midland Funding expanded to allow unlicensed debt collectors to file claims.

4th Circuit, Maryland