February 15, 2017

Debtor’s Consent Judgment Doesn’t Result in Automatically Allowed Claim

Clever strategy failed to limit a debtor’s personal liability.

8th Circuit, Missouri, Missouri Western District

February 14, 2017

Action by Three Courts Required to Settle an Appeal in the Circuit Court

Bankruptcy court approval isn’t enough to settle an appeal in the circuit court.

7th Circuit

February 13, 2017

Courts Split on Retention of Property on Individual’s Conversion from Chapter 11 to 7

Ninth Circuit BAP is a better venue for individuals converting from ‘11’ to ‘7.’

5th Circuit, Louisiana, Louisiana Eastern District

February 13, 2017

Judge Finds Several Reasons to Relieve Debtor of Counsel’s Mistake

If a chapter 13 plan was mistakenly five years, no cause is required to shorten it to three years.

6th Circuit, Michigan, Michigan Eastern District

February 10, 2017

Creditors Get Personal Injury Proceeds Although ‘Commitment Period’ Expired

Voluntary five-year commitment period sticks the debtor with its burdens, judge holds.

11th Circuit, Alabama, Alabama Northern District

February 09, 2017

Claim Deadline Also Applies to Secured Creditors in Chapter 13, Judge Holds

Although not required to file claims, secured creditors must comply with the deadline if they do.

6th Circuit, Ohio, Ohio Northern District

February 09, 2017

Breach of Corporate Fiduciary Duty Is Not Automatically Nondischargeable

‘Fiduciary duty’ is more narrowly defined in Section 523(a)(4) than in corporate law.

4th Circuit, North Carolina, North Carolina Eastern District

February 08, 2017

Debtor Still Protected by Automatic Stay Even after Right of Redemption Terminates

Ninth Circuit’s Tracht Gut opinion limited to its facts by the BAP.

9th Circuit

February 02, 2017

Fourth Circuit Follows Pre-Code Law Despite Contrary Legislative History

A bank deposit is only a substitution, not a transfer of property, circuit holds.

4th Circuit

January 31, 2017

A Proper Foreclosure Sale Can Never Be a Preference, Judge Holds

Despite gaining more than through chapter 7, purchasing at foreclosure is no preference.

3rd Circuit, Pennsylvania, Pennsylvania Western District