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ABI Journal

April 19, 2023

A Statement ‘For Informational Purposes’ Can Still Be a Stay Violation, BAP Says

A BAP strictly enforced the stay against a mortgage servicer who improperly listed a pre-petition debt in the portion of the monthly statement showing the next post-petition payment.

9th Circuit

April 14, 2023

Second Circuit Won’t Vacate the Stay Pending Appeal from Voyager’s Confirmation Order

A terse Second Circuit order seems to mean that a stay of a confirmation order pending appeal granted in district court can’t be appealed to the circuit, at least when the appeal is being expedited.

2nd Circuit

April 13, 2023

Judge Isgur Allows 401(k) Contributions in Chapter 13 Up to What the IRS Code Allows

Contributions to 401(k) plans are deducted from ‘projected disposable income,’ even though the debtor was not making contributions before filing

5th Circuit, Texas, Texas Southern District

April 07, 2023

Later Developments Don’t Undo Subchapter V Eligibility, Houston Judge Says

In the Alex Jones corporate Subchapter V case, Bankruptcy Judge Christopher Lopez said that the later chapter 11 filing by Jones himself, with about $1.5 billion in debt, didn’t kick the corporate debtor out of Subchapter V and into ‘ordinary’ chapter 11.

5th Circuit, Texas, Texas Southern District

April 06, 2023

Delaware Judge Explores the Theories Behind ‘Opt-In’ and ‘Opt-Out’ Chapter 11 Plans

Peculiar circumstance compelled a Delaware judge to depart from his usual approval of ‘opt-out’ plans that grant non-debtor releases.

3rd Circuit, Delaware

April 05, 2023

Rebuffed in Bankruptcy Court, the Government Wins a Stay of Voyager’s Confirmation

The U.S. Attorney argued in district court that the Voyager plan would bar the government from enforcing federal regulations and criminal laws.

2nd Circuit, New York, New York Southern District

April 04, 2023

Delaware and New York District Courts Split on Permissibility of Non-Debtor Releases

Upholding confirmation of the Boy Scouts’ chapter 11 plan, the district judge in Delaware disagreed with his counterpart in New York who found no statutory power to impose non-consensual, non-debtor third-party releases.

3rd Circuit, Delaware

March 22, 2023

Renewing a Title Loan Just Before Chapter 13 Didn’t Make the Filing in Bad Faith

Ruling the other way would have barred chapter 13 filings after renewing title loans.

11th Circuit, Alabama, Alabama Middle District

March 14, 2023

Oversecured Creditor Granted ‘Default’ Interest on a Loan Purchased at Discount

District judge in Connecticut upheld an award of ‘default’ interest, even though the fully secured lender had opposed the chapter 11 process and resisted the use of its cash collateral.

2nd Circuit, Connecticut

March 07, 2023

Revlon Says: Creditors Lack Standing to Assert Claims of ‘General Interest to the Estate’

A creditor with ‘derivative’ claims based on preference or fraudulent transfer can’t convert them to ‘direct’ claims by asking for equitable relief.

2nd Circuit, New York, New York Southern District