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ABI Journal

November 28, 2023

Ninth Circuit: State Law Can’t Require More than What Rule 3001 Requires for Claim Validity

Reversing the BAP, the Ninth Circuit (erroneously) holds that state law cannot demand more documentation for a proof of claim than Bankruptcy Rule 3001 requires for prima facie validity.

9th Circuit

November 10, 2023

Georgia Judge Approves a Chapter 11 Plan with Nonconsensual, Nondebtor Releases

Although the Supreme Court will soon rule on the permissibility of nonconsensual releases, Bankruptcy Judge Sigler approved a plan with nondebtor releases under existing Eleventh Circuit precedent.

11th Circuit, Georgia, Georgia Northern District

October 27, 2023

Filing Bankruptcy After Renewing a Title Loan Again Found Not to Be Bad Faith

Title lenders continue losing battles to take cars away from debtors, but the lenders have yet to plead and prove their best cases.

11th Circuit, Alabama, Alabama Middle District

October 19, 2023

State Law Lines Up with Federal Judicial Estoppel When Assets Aren’t Scheduled

Oregon Supreme Court allows substitution of a bankruptcy trustee as the real party in interest because denial would chiefly punish the debtor’s creditors.

9th Circuit, Oregon

October 18, 2023

Bankruptcy Courts Have Statutory Power to Remove Voided Liens

Bankruptcy Rule 7070, incorporating Federal Rule 70 along with 28 U.S.C. § 1655, gives bankruptcy courts power to remove liens of record when the lenders don’t do so voluntarily.

9th Circuit, California, California Eastern District

October 10, 2023

Consent to a Sale for Less than the Mortgage Debt Doesn’t Waive a Deficiency Claim

A secured lender need not obtain a deficiency judgment to retain a claim against an insurer for a shortfall in a bankruptcy sale, Bankruptcy Judge Grossman says.

2nd Circuit, New York, New York Eastern District

October 06, 2023

Debtors May Avoid Judicial Liens Under Section 522(f) Securing Nondischargeable Debts

Bankruptcy Judge Alan Koschik declined to follow cases decided before Congress amended Section 522(f) to preclude avoiding judicial liens securing domestic support obligations.

6th Circuit, Ohio, Ohio Northern District

September 27, 2023

A Settlement Term Sheet Signed After Mediation Was an Enforceable Contract

The state law standards for creation of a contract governed enforceability of a term sheet signed after mediation.

3rd Circuit, Pennsylvania, Pennsylvania Eastern District

September 20, 2023

Personal Injury Settlement Was Not ‘Income’ Payable to Creditors in Chapter 13

Memphis Bankruptcy Judge Denise Barnett reads the BAPCPA amendments as excluding personal injury settlements from the calculation of ‘projected disposable income.’

6th Circuit, Tennessee, Tennessee Western District

August 30, 2023

First Circuit Describes How to Value an Interest in Entireties Property

The value of a debtor’s interest in entireties property isn’t necessarily 50% of the value of the entire property.

1st Circuit