April 19, 2021
A District Court Rules that the U.S. Trustee Fee Increase Isn’t Retroactive
California district judge sides with the dissenter in the Fifth Circuit in saying that the parallel systems of U.S. Trustees and Bankruptcy Administrators violates the Bankruptcy Clause of the Constitution.
9th Circuit, California, California Central DistrictApril 08, 2021
Deeply Subordinated Creditor Barred from Voting or Objecting to Plan Confirmation
Subordination agreement did not transfer voting rights, but prudential standing nevertheless barred the subordinated creditor from participating in confirmation, Judge Somers says.
10th Circuit, KansasApril 02, 2021
Personal Injury Settlement Not Included in Calculating Projected Disposable Income
Judge McNamara of Denver allowed chapter 13 debtors to keep all of a $46,500 personal injury settlement received before filing.
10th Circuit, ColoradoMarch 08, 2021
Split Grows on Whether a Subchapter V Debtor Must Be ‘Currently’ Engaged in Business
The owner of defunct businesses was held ineligible to be a small business debtor because he was no longer the owner of an operating business. Being a non-owner executive of an operating business didn’t qualify him.
5th Circuit, Texas, Texas Northern DistrictMarch 04, 2021
Courts Are Split on Whether Counsel Fees Are Considered in the Chapter 13 Best Interests Test
Deferred payments to unsecured creditors in a chapter 13 plan must equal the present value of the distributions required by the best interests test, Judge Halfenger says.
7th Circuit, Wisconsin, Wisconsin Eastern DistrictFebruary 11, 2021
Tempnology Didn’t Undercut the Validity of Equitable Mootness, First Circuit Says
Confirmation appeals in two big cases are dismissed on the same day for equitable mootness.
1st CircuitJanuary 20, 2021
Promising Payment in Full to Everyone Doesn’t Warrant Confirmation by Itself
Chapter 11 can’t modify a nondebtor’s guarantee of a debtor’s obligations, absent consent from the lender.
9th Circuit, Washington, Washington Eastern DistrictJanuary 15, 2021
Third Circuit Upholds Equitable Mootness over a Dissent
Dissenter would have upheld horizontal gifting on the merits.
3rd CircuitJanuary 13, 2021
Another Court Lets the Debtor Keep Appreciation in a Home on Conversion from 13 to 7
Where the courts are split, Idaho judge sides with the Tenth Circuit BAP and allows a chapter 13 debtor to retain post-petition appreciation in the value of a homestead following conversion to chapter 7.
9th Circuit, IdahoJanuary 05, 2021
Chapter 12 Farmer Plan May Pay Impaired Secured Creditors Directly
The lender’s consent to direct payments by the family farmer persuaded Judge Furay to overrule the chapter 12 trustee’s objection to the plan.
7th Circuit, Wisconsin, Wisconsin Western District