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ABI Journal

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 District

September 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 District

September 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 District

September 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 Circuit

September 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, Massachusetts

September 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 District

September 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 Circuit

September 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 Circuit

August 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 Circuit

August 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