December 28, 2020
Absent a Stay, Making Plan Payments for Two Years Renders an Appeal Equitably Moot
In the First Circuit, transferring the business or assets isn’t required before confirmation is equitably moot.
1st CircuitDecember 09, 2020
Courts Are Split on the Interest Rate for Unsecured Creditors of a Solvent Debtor
California judge disagrees with a Texas judge and rules that creditors of a solvent debtor are not entitled to the higher state judgment rate or the higher contract rate.
9th Circuit, California, California Southern DistrictDecember 04, 2020
Court of Claims Upholds Fee Increase for U.S. Trustee System
The Fifth Circuit and now the Court of Claims found no constitutional flaw in the 2017 increase in fees paid by chapter 11 debtors to the U.S. Trustee system.
5th CircuitNovember 06, 2020
Fifth Circuit Upholds Constitutionality of Increase in U.S. Trustee Fees
Dissenter in the Fifth Circuit believes that having both U.S. Trustees and bankruptcy administrators violates the Uniformity Clause.
5th CircuitOctober 27, 2020
Texas Mineral Liens May Be Modified in a Subchapter V Cramdown Plan
A cramdown plan can reduce the collateral coverage for secured creditors.
5th Circuit, Texas, Texas Southern DistrictOctober 14, 2020
‘13’ Plans Already in Default on March 27 May Be Extended Under the CARES Act
Judge Grabill finds nothing in Section 1329(d) to preclude extending the duration of a plan if payments were already in default when the CARES Act was enacted on March 27.
5th Circuit, Louisiana, Louisiana Eastern DistrictOctober 08, 2020
Chapter 13 Debtors Retain Appreciation in Property After Conversion or Plan Amendment
On an issue where the courts are split, the Tenth Circuit BAP sides with debtors and allows them to retain postpetition appreciation in the value of assets that were in the estate on filing.
10th CircuitSeptember 29, 2020
Surety Bonds Aren’t Executory Contracts and Can’t Be Assumed Even if They Are
Insurance companies must nail down the treatment of performance bonds before plan confirmation.
5th Circuit, LouisianaSeptember 25, 2020
Substituting a Trustee as the Party in Interest Isn’t Amending the Complaint
Even after the statute of limitations has run, a trustee may be substituted for the debtor as the real party in interest, Michigan district judge says.
6th Circuit, Michigan, Michigan Eastern DistrictSeptember 23, 2020
A Liquidating Plan Doesn’t Automatically Pass the Best Interests Test, BAP Says
Findings of fact to show satisfaction of the best interests test ordinarily should be numerical comparisons, Ninth Circuit BAP Says
9th Circuit