February 12, 2020

May a Chapter 13 Plan Pay a Larger Percentage Toward Student Loans?

Since Congress has made student loans virtually nondischargeable, why can’t a chapter 13 plan discriminate in favor of paying more toward student loans?

2nd Circuit, New York, New York Northern District

February 03, 2020

Courts Deeply Split on Social Security Benefits in the Chapter 13 ‘Abuse’ Test

Michigan judges disagree about the court’s ability to consider Social Security benefits in deciding whether a chapter plan was proposed in good faith.

6th Circuit, Michigan, Michigan Eastern District

January 21, 2020

Chapter 13 Debtor Keeps Postpetition Appreciation in Nonexempt Property, BAP Says

Courts are split on whether creditors in chapter 13 are entitled to the postpetition appreciation in a debtor’s property.

9th Circuit

January 16, 2020

A Chapter 11 Filing Can Extend an Inflexible Closing Date by 60 Days

Filing a chapter 11 petition to obtain an automatic 60-day extension of a closing date is not a bad faith filing, Judge Bernstein says.

2nd Circuit, New York, New York Southern District

January 15, 2020

A Prior BAP Opinion Is Virtually Binding on a Later BAP Panel

A later First Circuit BAP panel should follow BAP authority unless the prior opinion seems “dead wrong.”

1st Circuit

January 07, 2020

Second Circuit Again Applies the ‘Safe Harbor’ to Protect Selling Shareholders in an LBO

The Supreme Court’s Merit Management opinion fails to persuade the Second Circuit to change the result in Tribune.

2nd Circuit

December 23, 2019

Third Circuit Finds Constitutional Power to Grant Releases in Confirmation Orders

Third Circuit emphasizes the limitation of nonconsensual, third-party releases to ‘exceptional’ cases.

3rd Circuit

December 10, 2019

Opting Out Won’t Justify Imposing Third-Party Releases, Delaware Judge Says

Saying she is in the minority in her district, a new Delaware judge ruled that allowing creditors to opt out won’t permit a plan to impose nonconsensual, third-party releases.

3rd Circuit, Delaware

December 03, 2019

Fifth Circuit Revokes a Controversial Opinion with Dicta on the Solvent-Debtor Exception

Fifth Circuit upholds its prior ruling that disallowing part of a claim under the Bankruptcy Code does not render the claim ‘impaired’ to allow voting on a chapter 11 plan.

5th Circuit

November 27, 2019

Support for Indigent Extended Family Cut Off in Chapter 13, but Life Insurance Wasn’t

Chapter 13 forces judges to micromanage the lives of debtors.

4th Circuit, Virginia, Virginia Eastern District