May 30, 2024

Res Judicata Bars Objections to Plan Amendments that Could Have Been Raised Before

Is feasibility of a plan reviewed for abuse of discretion or clear error? The circuits are split.

3rd Circuit

May 09, 2024

Sub V Plan Doesn’t Require Automatic Increases Based on Actual Disposable Income

Bankruptcy Judge Christopher Bradley disagreed with a district court in Florida that required a ‘true up’ if actual disposable income in Sub V exceeds projected disposable income.

5th Circuit, Texas, Texas Western District

May 06, 2024

After 180 Days, Confirmation Can’t Be Vacated, Even for the Best of Reasons

Federal Rule 60(b) can’t ‘end run’ Section 1144, Bankruptcy Judge Kimball holds.

11th Circuit, Florida, Florida Southern District

April 25, 2024

New York Judge Rejects a ‘Lockup’ Long Before a Plan Is Negotiated

New York’s Judge Martin Glenn disapproved a lockup agreement masquerading as a plan-support agreement that required the creditor to vote for any plan the debtor might propose.

2nd Circuit, New York, New York Southern District

April 12, 2024

Section 1325(b)(1) Held Applicable to Post-Confirmation Amendments to Chapter 13 Plans

Courts are split on whether the confirmation requirements in Section 1325(b)(1) apply when a debtor seeks confirmation of an amended plan.

7th Circuit, Illinois, Illinois Southern District

March 26, 2024

Nonconsensual, Nondebtor Releases Prohibited by a District Court in a Subchapter V Case

A district judge in New York reversed a bankruptcy judge who had permitted a nonconsensual, nondebtor release in a Subchapter V case.

2nd Circuit, New York, New York Southern District

March 22, 2024

Actual Notice Is Required for a Plan Injunction to Bind a Creditor

A creditor’s actual knowledge that a bankruptcy case exists isn’t enough for the creditor to be bound by a plan injunction, Delaware’s Judge Silverstein says.

3rd Circuit, Delaware

March 21, 2024

Supreme Court Hears Argument on Who Has Standing in Bankruptcy Cases

The Supreme Court may decide that standing in bankruptcy cases is more flexible and that Article III standards don’t apply in chapter 11 cases.

Supreme Court

March 12, 2024

Another Circuit Says Creditors Take Appreciation When a ‘13’ Case Converts to ‘7’

The Eighth Circuit aligned with the Ninth Circuit by holding that postpetition appreciation in a home belongs to creditors when a chapter 13 case converts to chapter 7.

8th Circuit

February 27, 2024

Lack of Financial Distress Doesn’t Divest a Court of Subject Matter Jurisdiction

Two North Carolina Courts have held within two months that the Bankruptcy Clause doesn’t demand ‘financial distress’ to establish subject matter jurisdiction.

4th Circuit, North Carolina, North Carolina Western District