September 17, 2020

District’s Model Chapter 13 Plan Violates the Code by Requiring More than 60 Payments

Detroit’s Judge Randon holds that a chapter 13 plan’s five-year duration begins to run from the first payment, not from confirmation.

6th Circuit, Michigan, Michigan Eastern District

September 15, 2020

New York Judge Nixes $2.45 Billion in DIP Financing as a Sub Rosa Plan

Even though the price and terms were ‘entirely fair,’ Bankruptcy Judge Garrity disapproved DIP financing that would have locked in the right of controlling shareholders to purchase new stock at a 20% discount.

2nd Circuit, New York, New York Southern District

September 14, 2020

University Medical Unscathed After Denby-Peterson, Delaware District Judge Says

The government lost a winnable appeal by failing to present evidence in bankruptcy court.

3rd Circuit, Delaware

September 08, 2020

Ninth Circuit: Government Doesn’t Pay Counsel Fees on Reversal of Sua Sponte Actions

Will there be occasions where the government must pay a debtor’s counsel’s fees when a U.S. Trustee unsuccessfully opposes a debtor’s initiative?

9th Circuit

September 02, 2020

Trustee Ordered to Disgorge Fees for Failing to Pay the U.S. Trustee’s Fees

The power to order disgorgement of fees arose under Section 105(a), not from Sections 330 or 331.

2nd Circuit, New York, New York Eastern District

September 01, 2020

An Undersecured Lender Can Indirectly Waive the Right to an 1111(b) Election

Agreeing to bidding procedures can waive the right to make the Section 1111(b) election, Judge Hoffman says.

6th Circuit, Ohio, Ohio Southern District

August 31, 2020

Cramdown Doesn’t Require Strict Enforcement of Subordination, Third Circuit Says

Pragmatic opinion by Circuit Judge Ambro allows cramdown to achieve ‘rough justice.’

3rd Circuit

August 31, 2020

Fifth Circuit Invalidates Local Chapter 13 Plan Regarding Tax Refunds

Below median debtors are no longer required to turn over tax refunds in excess of $2,000.

5th Circuit

August 27, 2020

Fourth Circuit Stands Alone in Limiting Chapter 13 Plan Modifications

Eleventh Circuit joins the majority of circuits by holding that unforeseen, changed circumstances are not required to modify a chapter 13 plan.

11th Circuit

August 24, 2020

Parental Support Isn’t Counted on Discharge of Student Loans, Judge Kendig Says

Private charity is not considered to be part of a debtor’s income under the first part of the Brunner test.

6th Circuit, Ohio, Ohio Northern District