September 25, 2018

District Court Finds Constitutional Power to Grant Releases in Confirmation Orders

Delaware district judge rules that the bankruptcy court has final adjudicatory power to include third-party releases in confirmation orders.

3rd Circuit, Delaware

September 24, 2018

Makewhole Premium Disallowed When the Debt Had Been Accelerated

Judge Flatley avoids taking sides in the Second/Third Circuit split.

4th Circuit, West Virginia, West Virginia Northern District

September 21, 2018

Chicago Judge Refuses to Confirm a ‘Step’ Chapter 13 Plan

Judge Barnes won’t allow a chapter 13 debtor’s counsel to be paid at the expense of secured creditors.

7th Circuit, Illinois, Illinois Northern District

September 20, 2018

Courts Split over Interest on Unsecured Claims in 100% Chapter 13 Plans

‘Value’ doesn’t mean ‘present value’ in Section 1325(b)(1)(A), Judge Lorch says.

7th Circuit, Indiana, Indiana Southern District

September 13, 2018

Requiring Conduit Mortgage Payments Is Ok Despite Costing the Debtor $5,300

Bankruptcy judge says a chapter 13 debtor receives ‘several benefits’ from paying 8% in commissions on mortgage payments through the trustee.

4th Circuit, North Carolina, North Carolina Eastern District

September 10, 2018

Fourth Circuit Is Strict on ‘Person Aggrieved’ and Equitable Mootness

Fourth Circuit disposes of a high-stakes appeal without oral argument in a terse, per curiam opinion incorporating the ‘reasons stated by the district court.’

4th Circuit

September 06, 2018

Delaware District Judge Upholds Horizontal ‘Gifting’ in a Chapter 11 Plan

Narrow reading of ‘equitable mootness’ in Tribune is limited to cases involving a dispute between two classes.

3rd Circuit, Delaware

August 27, 2018

A Plan Can Release Claims for Post-Confirmation Conduct, Third Circuit Says

Third Circuit leaves open the question of whether distributions to shareholders in chapter 11 must follow FINRA rules.

3rd Circuit

August 20, 2018

Eleventh Circuit Endorses the Applicability of ‘Equitable Mootness’ in Chapter 9

Two circuits and a BAP now invoke ‘equitable mootness’ to dismiss appeals from orders confirming chapter 9 municipal debt adjustment plans.

11th Circuit

August 17, 2018

Third Circuit Explores the Limits of Channeling Injunctions Protecting Insurers

Caution: Do not use heavy machinery. Reading this story may induce drowsiness.

3rd Circuit