July 09, 2021
Amended Chapter 13 Plan Allowed to Cure Post-Petition Mortgage Defaults
Courts are split on whether a debtor may amend a chapter 13 plan to cure post-petition defaults on a principal residence.
3rd Circuit, New JerseyJuly 01, 2021
Judge Sontchi Cuts Off U.S. Trustee Fees on Confirmation of a Chapter 11 Plan
Closing a chapter 11 case after confirmation to avoid U.S. Trustee fees won’t be necessary if the ruling by Judge Sontchi holds up.
3rd Circuit, DelawareJune 01, 2021
Debt from a Defunct Business Can Help to Qualify for Subchapter V
Part-time self-employment, coupled with debt from a defunct business, qualified the debtor for reorganization under Subchapter V of chapter 11.
4th Circuit, North Carolina, North Carolina Middle DistrictMay 27, 2021
Circuits Are Now Split on the Constitutionality of the 2018 Increase in U.S. Trustee Fees
The Second Circuit split with the Fourth and Fifth Circuits by holding that the increase in fees for the U.S. Trustee system was unconstitutional because it was not imposed simultaneously in the two states with bankruptcy administrators.
2nd CircuitMay 25, 2021
Chapter 13 Debtor May (Sometimes) Contribute to Retirement Plans
A chapter 13 debtor was permitted to make a fraction of the pension contributions permitted by the IRS Code.
4th Circuit, South CarolinaMay 19, 2021
West Virginia Judge Allows Conversion to Subchapter V After Deadlines Passed
When drafting a statute, Congress cannot ‘think of every single esoteric possibility,’ Judge Mignault says.
4th Circuit, West Virginia, West Virginia Southern DistrictMay 03, 2021
Another Circuit Upholds the 2018 Increase in U.S. Trustee Fees
Dissenters in the Fourth and Fifth Circuits evidently believe that the dual U.S. Trustee/Bankruptcy Administrator system is unconstitutional.
4th CircuitApril 27, 2021
Corporations Are More Likely Eligible for the SBRA than Owners of Defunct Businesses
Utah’s Judge Thurman says that a corporation liquidating its remaining assets is engaged in business ‘activities’ and is therefore eligible for Subchapter V.
10th Circuit, UtahApril 26, 2021
Faulty Pleading Resulted in Dismissal of a Suit by an ‘Unknown’ Creditor
Third Circuit dicta suggests that failure to create a trust is constitutionally deficient and won’t discharge claims of ‘unknown’ creditors in a chapter 11 plan.
3rd CircuitApril 21, 2021
Denver Judge Opens the SBRA Door Wide for People with Debt from Failed Companies
A fast-food worker can (conceivably) qualify as a small business debtor under Subchapter V, according to Bankruptcy Judge Thomas B. McNamara.
10th Circuit, Colorado