August 21, 2020
Detroit District Judge Includes Social Security Benefits in the Chapter 13 ‘Abuse’ Test
Although Social Security benefits are not subject to the “operation of any bankruptcy or insolvency law,” judge says they can be considered in deciding whether someone should be allowed to confirm a chapter 13 plan or have a chapter 7 case dismissed for ‘abuse.’
6th Circuit, Michigan, Michigan Eastern DistrictAugust 13, 2020
Florida Judge Bars Redesignation Under the SBRA When Deadlines Have Already Lapsed
With deadlines already elapsed, Judge Grossman disagrees with three judges who allowed redesignation under subchapter V of chapter 11.
11th Circuit, Florida, Florida Southern DistrictAugust 11, 2020
Seventh Circuit Bars ‘Objector Blackmail’ in a Class Settlement
The Seventh Circuit uses broad equitable powers to prevent one member of a class from receiving a settlement when appealing an issue applicable to the entire class.
7th CircuitAugust 06, 2020
Seven-Year Chapter 13 Stretchout Isn’t Available for Plans Confirmed After March 27
Two judges agree that the CARES Act amendment allowing chapter 13 plans to run for seven years is applicable only to plans confirmed before March 27.
6th Circuit, Michigan, Michigan Eastern DistrictJuly 31, 2020
Tenth Circuit BAP Says that Section 364(d)(1) Can’t Be Used for Priming Lien in a Plan
In a SARE case, the BAP says that the bankruptcy court cannot deny a lift-stay motion without finding that confirmation is reasonably possible in a reasonable time.
10th CircuitJuly 24, 2020
Increasingly Popular SBRA Permits Restructuring Personal Guarantees of Corporate Debt
More than 600 cases have already been filed under the SBRA since subchapter V of chapter 11 became effective in February.
5th Circuit, Louisiana, Louisiana Eastern DistrictJuly 13, 2020
Three Judges Permit Redesignation under the SBRA, But with Qualifications
The SBRA can be used to extinguish a creditors’ committee previously appointed in a ‘traditional’ chapter 11 case.
4th Circuit, MarylandJuly 07, 2020
Subchapter V Isn’t Always an Antidote for a Failing Chapter 11 Reorganization
Misconduct in the prior chapter 11 case barred debtors from proceeding as a small business reorganization under subchapter V of chapter 11.
10th Circuit, Oklahoma, Oklahoma Western DistrictJune 25, 2020
Reversing the BAP, Ninth Circuit Allows Chapter 13 Plans with Estimated Durations
The Ninth Circuit allows chapter 13 debtors on their own to accelerate payments to creditors and secure their discharges more quickly without modifying their plans.
9th CircuitJune 17, 2020
Ninth Circuit Now Permits Nonconsensual, Third-Party Releases in Chapter 11 Plans
Aligning with the Third Circuit, the Ninth Circuit says that lower courts were reading its prior decisions too broadly.
9th Circuit