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ABI Journal

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 Circuit

December 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 District

December 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 Circuit

November 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 Circuit

October 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 District

October 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 District

October 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 Circuit

September 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, Louisiana

September 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 District

September 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