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ABI Journal

September 07, 2021

Chapter 11 Plans May Discharge Post-Confirmation ‘Admin’ Claims, Third Circuit Says

Although Section 1141(d)(1) sets a default rule only discharging claims that arose before confirmation, Circuit Judge Ambro says that a plan may alter the default rule and allow discharge of administrative claims arising after confirmation.

3rd Circuit

August 31, 2021

Gerrymandering to Create an Accepting Class Didn’t Pass Muster in Orlando, Fla.

Paying more to the sole creditor in the only accepting class unfairly discriminated against other unsecured creditors, Judge Jennemann said.

11th Circuit, Florida, Florida Middle District

August 24, 2021

Who Gets Insurance Proceeds When a Car Is ‘Totaled’ in Chapter 13?

Judge Callaway explains when a debtor keeps insurance proceeds and when it goes to creditors under a chapter 13 plan.

11th Circuit, Alabama, Alabama Southern District

August 17, 2021

Congress Must Decide: May Chapter 13 Debtors Contribute to 401(k) Plans?

Courts are split on whether chapter 13 effectively prohibits debtors from making voluntary contributions to 401(k) plans.

6th Circuit

August 13, 2021

In ‘Chapter 20,’ Discharged Mortgage Claim Resurrects as Unsecured, EDNY Judge Says

Judge Grossman didn’t abolish ‘chapter 20’ entirely. He required the debtor to treat the subordinate mortgage lender like all other unsecured creditors, even though the debtor’s personal liability to the lender had been discharged in the prior chapter 7 case.

2nd Circuit, New York, New York Eastern District

August 10, 2021

Eighth Circuit Comes Near to Abolishing Equitable Mootness

Circuit Judge Loken predicts the Supreme Court will abolish equitable mootness if the lower courts don’t cut back and start reviewing the merits of confirmed chapter 11 plans.

8th Circuit

August 09, 2021

‘Cert’ Petitions Raise Equitable Mootness and Federal Preemption in the Supreme Court

‘Cert’ petitions presenting two bankruptcy issues worthy of review by the Supreme Court will be considered by the justices at the ‘long conference’ on September 27.

Supreme Court

July 29, 2021

Circuits Split on Allowing Debtors to Cure Chapter 13 Plan Defaults After Five Years

Tenth Circuit splits with the Third and Seventh Circuits on allowing a debtor to cure defaults after a five-year plan has ended.

10th Circuit

July 28, 2021

Chapter 13 Debtors Keep Windfalls with No Connection to Assets on the Filing Date

Taking sides with the minority on a split, bankruptcy judges in Kansas allow chapter 13 debtors to retain windfalls acquired after filing.

10th Circuit, Kansas

July 21, 2021

Circuit Split on U.S. Trustee Fees Likely Won’t Reach the Supreme Court Until Fall 2022

Judge Hoffman sets up Sixth Circuit to opine on the circuit split regarding the constitutionality of the 2018 increase in fees for the U.S. Trustee system.

6th Circuit, Ohio, Ohio Southern District