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ABI Journal

June 12, 2020

Fifth Circuit Bans Molina Provisions in Chapter 13 Plans

Court cannot impose a nonstatutory provision on a chapter 13 ‘full payment’ plan that restricts the debtor’s right to modify a confirmed plan.

5th Circuit

June 08, 2020

Eleventh Circuit Holds that a Chapter 13 Plan Alone Can’t Assume a Lease or Contract

In the first court of appeals decision on the topic, the Eleventh Circuit holds that the chapter 13 trustee alone has power to assume a lease or contract.

11th Circuit

June 03, 2020

Sixth Circuit Allows Chapter 13 Debtors to Continue Retirement Plan Contributions

Sixth Circuit is the first court of appeals to take sides on a lower court split and opine that continuing to make voluntary contributions to retirement plans is excluded from ‘disposable income.’

6th Circuit

May 22, 2020

An Exempt Asset Effectively Loses Its Exemption in Chapter 13

Lower courts are split on whether an exempt asset is included in the calculation of “projected disposable income” in chapter 13.

10th Circuit, Colorado

May 14, 2020

Another Judge Allows Switching to the SBRA When a Pending Chapter 11 Is About to Fail

Judge Jacobvitz allows the debtor to proceed under the SBRA more than a year after the initial chapter 11 filing

10th Circuit, New Mexico

May 12, 2020

Confirmation Barred Claims Against a Coal Producer for Causing Global Warming

Global warming claims were discharged even though the chapter 11 plan did not discharge claims under environmental laws.

8th Circuit

May 08, 2020

Tenth Circuit Applies Equitable Mootness to Appeals from Liquidating Chapter 11 Plans

Circuit says that some factors are more important than others when applying equitable mootness to appeals from liquidating plans.

10th Circuit

April 23, 2020

Chapter 13 Debtor Can’t Keep Postpetition Appreciation in Value of Stock Options

Two recent decisions by the 9th Circuit BAP seem in conflict on a chapter 13 debtor’s ability to retain appreciation in the value of assets.

9th Circuit

April 14, 2020

Stripping Down a Mortgage on a Mixed-Use Property Under the SBRA

A New York court allows a chapter 11 case pending for 15 months to redesignate for treatment under the Small Business Reorganization Act.

2nd Circuit, New York, New York Eastern District

March 31, 2020

Cramdown Must Not Put the Secured Creditor at Risk, Ninth Circuit BAP Says

Permanently reducing the claim by the appraised value without a backstop means the creditor isn’t receiving the ‘indubitable equivalent,’ BAP says.

9th Circuit