December 20, 2022

Arguments Both Ways, Power to De-Designate from Subchapter V Left Undecided

Although deposed as debtor in possession, the Subchapter V debtor retains the sole power to file a chapter 11 plan.

3rd Circuit, Delaware

December 02, 2022

Current IRS Expense Standards Used When Modifying a Chapter 13 Plan

Bankruptcy Judge Robert Mark used common sense and logic to answer a question where the statute has no ready answer.

11th Circuit, Florida, Florida Southern District

November 22, 2022

Chapter 7 Estate Takes Post-Petition Appreciation on Conversion from Chapter 13

Joining the ‘slight minority,’ Judge Fenimore rules that post-petition appreciation in the value of a homestead goes to the chapter 7 estate when the chapter 13 case converts.

8th Circuit, Missouri, Missouri Western District

November 15, 2022

Employer-Paid Health Insurance Is Held to Be Income in Chapter 13

Should the cost of employer-provided health care insurance be considered income for lower-income Americans?

9th Circuit, Idaho

November 14, 2022

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

The Second Circuit essentially reissued its original decision from last year by again requiring the U.S. Trustee to refund the overpayment of unconstitutional fees.

2nd Circuit

November 09, 2022

Plans Longer than 5 Years Can’t Be Amended Now Because Section 1329(d) Has Expired

A plan longer than five years must revert to a five-year plan now that Congress has allowed Section 1329(d) to expire, Judge Hanan says.

7th Circuit, Wisconsin, Wisconsin Eastern District

November 08, 2022

Claiming ‘100% of FMV,' Debtors Keep Postpetition Appreciation in Exempt Assets

Ninth Circuit BAP interprets Taylor and Schwab to mean that a trustee cannot revisit the value of an exempt asset if the debtor claimed ‘100% of FMV’ and there was no timely objection.

9th Circuit

October 31, 2022

‘Economic Unit Approach’ Best Fixes the Size of a ‘Household,’ Judge Larson Says

The IRS and Census methods for determining the size of a ‘household’ undercount or overcount economic realities, judge says.

5th Circuit, Texas, Texas Northern District

October 21, 2022

Second Circuit Says Orderly Liquidation Value Is Proper for a Retailer in Chapter 11

The Second Circuit adapts Rash to value the lender’s collateral in chapter 11 where there was a going-concern sale.

2nd Circuit

October 20, 2022

Possibly Dicta, the Fifth Circuit Disallows Make-Wholes

Creating a circuit split, the Fifth Circuit holds that the solvent-debtor exception to the allowance of post-petition interest survived adoption of the Bankruptcy Code.

5th Circuit