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ABI Journal

July 15, 2022

Change in Decisional Law Requires Plan Amendment in One Year, Seventh Circuit Says

To take advantage of a change in decisional law, a plan must be modified within the time limits imposed by Federal Rule 60(c), the Seventh Circuit says.

7th Circuit

July 12, 2022

Third Circuit Sets the Standard for Qualification of a Future Claimants’ Representative

A representative of future claimants must meet a higher standard than disinterestedness, the Third Circuit said, but technical conflicts may not be disqualifying.

3rd Circuit

July 07, 2022

May a Judge Revoke a Small Business Designation under Subchapter V of Chapter 11?

Bankruptcy Judge Gunn found the power to revoke a small business designation and proceed under ‘traditional’ chapter11 in lieu of dismissing or converting to chapter 7.

D.C. Circuit

July 06, 2022

Parties May Not Consent for Magistrate Judge to Decide a Bankruptcy Appeal

Fifth Circuit holds that 28 U.S.C. § 158 requires district judges or BAPs to decide bankruptcy appeals.

5th Circuit

July 05, 2022

District Judge Effectively Bars a Short Sale Without Paying the Homestead Exemption

Reversing, a Long Island district judge credits value to a homeowner’s ability to delay foreclosure, taking a position contrary to a recent decision from a Ninth Circuit B.A.P.

2nd Circuit, New York, New York Eastern District

June 29, 2022

Lender Defaulted on the Merits for ‘Prolonged, Extraordinary’ Discovery Violations

Despite contrary Second Circuit dicta, retiring Judge Robert Drain certified a nationwide class in a suit for violation of the discharge injunction.

2nd Circuit, New York, New York Southern District

June 28, 2022

Supreme Court to Decide Whether Section 363(m) Is a Jurisdictional Bar to Appeal

The Supreme Court now has two bankruptcy cases on the calendar for argument in the term to begin in October.

Supreme Court

June 27, 2022

A Deceased Chapter 13 Debtor Can Still Obtain a Discharge, Judge Parker Says

Death is a reason for waiving the requirement for completing a financial management course.

5th Circuit, Texas, Texas Western District

June 23, 2022

Chapter 7 Debtors Have No Appellate Standing to Challenge a Short Sale, BAP Says

BAP doesn’t allow debtors to appeal when a trustee sells their home out from underneath them in a short sale.

9th Circuit

June 21, 2022

Judge Walrath Describes Due Diligence to Plead After the Amendment to Section 547(b)

The amendment to Section 547(b) does not require a preference complaint to explain why the defendant doesn’t have affirmative defenses, Judge Walrath says.

3rd Circuit, Delaware