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ABI Journal

July 10, 2023

Government to Seek Supreme Court Review of Purdue’s Third-Party, Nondebtor Releases

In a motion to stay the issuance of the mandate, the government has announced that it will be filing a petition for certiorari asking the Supreme Court to review the Second Circuit’s Purdue decision allowing bankruptcy courts to issue releases to nondebtors.

Supreme Court

June 28, 2023

Three Circuits Now Require Refunds for Overpayment of U.S. Trustee Fees

The government has filed a petition for certiorari raising the question of whether refunds are the proper remedy following the Supreme Court’s Siegel decision finding that the 2018 increase in U.S. Trustee fees was unconstitutional.

11th Circuit

June 22, 2023

No Bankruptcy Jurisdiction for a Settlement that Contradicts a Chapter 11 Plan

Fifth Circuit finds no bankruptcy jurisdiction to approve a settlement after confirmation that contradicts the chapter 11 plan.

5th Circuit

June 21, 2023

‘13’ Debtors May Deduct their Actual Mortgage Expenses to Arrive at Disposable Income

The Fourth Circuit agreed with the Sixth and Ninth Circuits by allowing chapter 13 debtors to deduct their actual mortgage expenses, not limited by the local standard mortgage deduction.

4th Circuit

June 06, 2023

BAP Gives Post-Petition Appreciation to Chapter 7 Estate on Conversion from Chapter 13

In a rising real estate market, chapter 13 debtors risk losing their homes if they sell or convert to chapter 7.

8th Circuit

June 01, 2023

Courts Split on Plan Amendments Requiring Substantial, Unanticipated Changes

Eighth Circuit BAP ‘at a minimum’ requires substantial changes in financial condition for a debtor to modify a confirmed chapter 12 plan.

8th Circuit

May 31, 2023

Second Circuit Reverses, Reinstates Purdue’s Nondebtor, Third-Party Releases

The concurring opinion, which is really a dissent, urges the Supreme Court to grant certiorari and resolve the split of circuits on nondebtor releases.

2nd Circuit

May 25, 2023

Do Debtors Get to Keep Post-Confirmation Windfalls in Chapter 13?

Chapter 13 scholar Keith Lundin believes that debtors retain inheritances acquired more than 180 days after filing.

9th Circuit, Washington, Washington Western District

May 24, 2023

Find and Fix the Flaws in Appraisals Before They Are Subjected to Cross Examination

An appraisal was rejected entirely as being ‘inherently unreliable’ when it gave the client the value that the client wanted.

9th Circuit, California, California Eastern District

May 23, 2023

Bankruptcy Judges Agree: Later Developments Don’t Undo Subchapter V Eligibility

The $7.5 million debt cap for Subchapter V doesn’t include the debt of affiliates who file later.

4th Circuit, Virginia, Virginia Western District