October 21, 2019

‘Disinterestedness’ Governs Approval of a Future Claimants’ Representative

Negotiating a prepackaged asbestos plan and having been paid by the debtor does not disqualify a future claimants’ representative under the disinterestedness standard.

3rd Circuit, New Jersey

October 07, 2019

Debtors’ Attorneys Are Paid in Chapter 13 Before Secured Creditors

Indiana bankruptcy and district judges rule that secured lenders are only entitled to ‘adequate protection’ until the debtor’s counsel’s allowed fees have been paid in full.

7th Circuit, Indiana, Indiana Southern District

October 04, 2019

Separate Classification of a Child’s Student Loan Barred in a Chapter 13 Plan

Factors in permitting separate classification of debts include moral obligation and tangible benefit.

4th Circuit, North Carolina, North Carolina Eastern District

September 26, 2019

Another Court Limits ‘Related To’ Jurisdiction Based on Indemnification Claims

W.R. Grace makes more law on channeling injunctions.

3rd Circuit, Delaware

September 25, 2019

Sixth Circuit Might Rule on Deductions for Contributions to Retirement Accounts

Courts are split on whether chapter 13 debtors may deduct voluntary contributions to retirement accounts from ‘disposable income.’

6th Circuit, Michigan, Michigan Eastern District

September 04, 2019

Another Judge Clamps Down on Third-Party Releases in a Major Reorganization

Extinguishing contingent environmental claims doesn’t comply with the Sixth Circuit’s Dow Corning test, Judge Koschik says.

6th Circuit, Ohio, Ohio Northern District

September 03, 2019

Section 363 Doesn’t Apply to Asset Sales in a Chapter 11 Plan, Judge Garrity Rules

Section 363(o) claims nonetheless must be counted in deciding whether a chapter 11 plan passes the best interests test.

August 26, 2019

Absolute Priority Doesn’t Require an Individual Debtor to Pay for Exempt Property

BAP holds that an individual in chapter 11 isn’t required to contribute new value to retain exempt property.

9th Circuit

August 23, 2019

Debt Discharged in Prior Chapter 7 Isn’t Counted in Later Chapter 13 Eligibility

In calculating eligibility for chapter 13, Judge Nevins in Connecticut differs from some other bankruptcy judges in the Second Circuit.

August 13, 2019

Eighth Circuit Upholds Backstopped Rights Offerings for Chapter 11 Plans

Appeals court laudably provides guidance for lower courts by ruling on the merits of a chapter 11 plan and not dismissing an appeal for being equitably moot.

8th Circuit