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ABI Journal

January 29, 2025

Debtors Have a Narrow Window in ‘13’ to Redeem Foreclosed Property, BAP Says

Because a right of redemption does not give rise to a claim, Section 1322(b) doesn’t enable a debtor to redeem foreclosed property when the right of redemption has expired.

9th Circuit

January 14, 2025

Fifth Circuit Holds that Equitable Mootness Doesn’t Protect Parties to the Appeal

Fifth Circuit didn’t permit plan proponents to structure a chapter 11 plan so that an appeal would be equitably moot.

5th Circuit

January 13, 2025

Fifth Circuit Bans Uptier Financings for Violating the Principle of Ratable Treatment

The Fifth Circuit declines to adopt a securities industry guidebook for what’s a permissible financing.

5th Circuit

December 18, 2024

Debtor’s Appeal from Chapter 13 Plan Confirmation Held Equitably Moot

District court equates distribution to creditors in chapter 13 to substantial consummation of a chapter 11 plan.

4th Circuit, Virginia, Virginia Eastern District

December 16, 2024

Constitutional and Prudential Standing Survived Truck Insurance, Judge Kinsella Says

Did the notion of ‘prudential standing’ in bankruptcy cases survive Truck Insurance?

2nd Circuit, New York, New York Northern District

December 11, 2024

Bankruptcy Courts Don’t Agree on What’s a ‘Consensual’ Nondebtor Release

Bankruptcy Judge Paul Baisier of Atlanta disagreed with Bankruptcy Judge Craig Goldblatt of Delaware about requiring creditors to vote before they are saddled with nondebtor releases in chapter 11 plans.

11th Circuit, Georgia, Georgia Northern District

December 06, 2024

Giving the Debtor a Grace Period to Cure Isn’t Extending a Plan Beyond Five Years

In the Third Circuit, it’s possible to cure a payment default under a chapter 13 play beyond five years, district judge says in affirming the bankruptcy court.

3rd Circuit, New Jersey

December 03, 2024

Purdue Preliminary Injunction Protecting Nondebtors Upheld on Appeal

The same district judge who correctly predicted that Purdue’s nonconsensual releases were prohibited has nonetheless upheld a preliminary injunction barring suits against nondebtors.

2nd Circuit, New York, New York Southern District

December 02, 2024

A Business that Never Generated Income Is Eligible for Subchapter V, Judge Norman Says

The definition of ‘small business’ uses the word ‘activities,’ not ‘operations,’ making nonoperating small business eligible for Subchapter V.

5th Circuit, Texas, Texas Southern District

November 27, 2024

Creating a Circuit Split, Ninth Circuit Allows Retirement Contributions in Chapter 13

The Ninth Circuit split with the Sixth Circuit in the interpretation of the ‘hanging paragraph’ in Section 541(b)(7). Courts are divided four ways on whether or how much a ‘13’ debtor may contribute to voluntary retirement plans after filing.

9th Circuit