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ABI Journal

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 District

April 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, Kansas

April 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, Colorado

March 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 District

March 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 District

February 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 Circuit

January 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 District

January 15, 2021

Third Circuit Upholds Equitable Mootness over a Dissent

Dissenter would have upheld horizontal gifting on the merits.

3rd Circuit

January 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, Idaho

January 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