September 27, 2023
A Settlement Term Sheet Signed After Mediation Was an Enforceable Contract
The state law standards for creation of a contract governed enforceability of a term sheet signed after mediation.
3rd Circuit, Pennsylvania, Pennsylvania Eastern DistrictSeptember 25, 2023
Nonpurchase Money Debt Service on a Car Isn’t a Deductible ‘Ownership’ Cost in ‘13’
Courts aren’t fully in agreement, but most hold that non-purchase money debt service on a car isn’t an ‘ownership cost’ deducted from current monthly income to arrive at disposable income in chapter 13.
5th Circuit, Louisiana, Louisiana Western DistrictSeptember 20, 2023
Personal Injury Settlement Was Not ‘Income’ Payable to Creditors in Chapter 13
Memphis Bankruptcy Judge Denise Barnett reads the BAPCPA amendments as excluding personal injury settlements from the calculation of ‘projected disposable income.’
6th Circuit, Tennessee, Tennessee Western DistrictSeptember 15, 2023
Chapter 7 Debtors Have No Appellate Standing to Challenge a Short Sale, Circuit Says
Ninth Circuit doesn’t allow debtors to appeal when a trustee sells their home out from underneath them in a short sale.
9th CircuitSeptember 14, 2023
College Tuition Made a Debtor Ineligible for Chapter 7
Chapter 7 can be inaccessible for a married debtor living in the same household with a nonfiling spouse who has substantial income.
1st Circuit, MassachusettsSeptember 13, 2023
Rising Home Values and Chapter 13: A Deepening Split
When, post-confirmation, a chapter 13 debtor sells his or her home, who gets the benefit of the appreciation: the debtor, or his or her creditors? Judge Randon in Michigan adopted the so-called “estate replenishment approach” and held that sale proceeds derived from post-confirmation appreciation of a home belong to the debtor.
6th Circuit, Michigan, Michigan Eastern DistrictSeptember 11, 2023
Sixth Circuit Holds that Constitution Requires Hearing Within Two Weeks of Vehicle Seizure
In addressing Michigan county’s car-seizure and forfeiture practices, Sixth Circuit sets a clear benchmark for debtors.
6th CircuitSeptember 07, 2023
Stop Punishing the Innocent: Congress Should Fix the Doll/Evans Problem
What will become of the chapter 13 system if standing trustees must refund all fees collected in cases dismissed before confirmation? The answer is perhaps unexpected: Unsecured creditors in confirmed chapter 13 cases will pay the administrative expenses of cases that fail.
9th CircuitAugust 30, 2023
First Circuit Describes How to Value an Interest in Entireties Property
The value of a debtor’s interest in entireties property isn’t necessarily 50% of the value of the entire property.
1st CircuitAugust 29, 2023
Eleventh Circuit Narrowly Reads a State Fee-Shifting Statute
The lawsuit was under federal law, not state law, even though Section 544(b)(1) incorporated state fraudulent transfer law.
11th Circuit