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ABI Journal

January 12, 2022

Supreme Court to Resolve Circuit Split on the 2018 Increase in U.S. Trustee Fees

The Supreme Court granted certiorari to decide whether the 2018 increase in U.S. Trustee fees violated the Bankruptcy Clause because it was not immediately applicable in two states with Bankruptcy Administrators.

Supreme Court

January 11, 2022

Purdue District Judge Authorizes Appeal to the Second Circuit on Non-Debtor Releases

The district judge who overturned confirmation of Purdue’s chapter 11 plan is requiring the debtor to expedite the appeal to the Second Circuit.

2nd Circuit

January 06, 2022

Majority of Courts Use Confirmation Date to Value a Lender’s Collateral in Cramdown

Courts are split when it comes to deciding whether the confirmation date or the filing date should be used to value a secured lender’s collateral in cramdown.

10th Circuit, New Mexico

December 28, 2021

Delaware Judge Issues Comprehensive Opinion on Makewholes and Unmatured Interest

Split grows on allowance of makewholes and what constitutes disallowed, unmatured interest.

3rd Circuit, Delaware

December 20, 2021

Third-Party, Non-Consensual Releases Nixed in the Purdue ‘Opioid’ Reorganization

Manhattan district judge vacated confirmation of Purdue Pharma’s chapter 11 plan because the court had no statutory power to impose non-consensual releases of creditors’ direct claims against non-debtors.

2nd Circuit

December 09, 2021

Interest Not Required on 100% ‘13’ Plans that Don’t Commit All Disposable Income

Treaties disagree on whether interest is required in 100% chapter 13 plans when the debtor is not devoting all disposable income to the plan.

4th Circuit, South Carolina

December 09, 2021

Government Urges Supreme Court to Review Constitutionality of the 2018 Increase in U.S. Trustee Fees

The U.S. Solicitor General wants the Supreme Court to resolve a circuit split and decide whether the increase in U.S. Trustee fees violated the Bankruptcy Clause because it was not immediately applicable in two states with bankruptcy administrators.

Supreme Court

November 19, 2021

Res Judicata Limits an Objection to a Claim Allowed in a Prior Bankruptcy

Reducing a claim between the first and second bankruptcy didn’t prevent the Fifth Circuit from employing res judicata.

5th Circuit

November 18, 2021

Reducing a Personal Guarantee Under a Plan Isn’t a Discharge, Fifth Circuit Says

The appeals court barred the holder of a personal guarantee from launching a collateral attack on a confirmed chapter 11 plan.

5th Circuit

November 17, 2021

Circuit Expands Espinosa to Include Failure to Give Notice of Third-Party Releases

Eleventh Circuit holds that the lack of notice required by Bankruptcy Rule 2002(c)(3) did not result in the invalidity of non-debtor, third-party releases in a chapter 11 plan.

11th Circuit