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ABI Journal

July 19, 2023

A Trustee Receives Statutory Commissions Unless the Amount Is ‘Offensive’

A trustee’s commissions can’t be based on a percentage of disbursements to the trustee’s own counsel, so says a New Jersey district judge.

3rd Circuit, New Jersey

July 18, 2023

Connecticut Supreme Court: Increased Homestead Exemption Applies to Existing Debts

Even under an unfavorable choice of law, a debtor in Connecticut was allowed to enjoy the state’s new $250,000 homestead exemption, even though her debts had accrued before the increase went into effect.

2nd Circuit, Connecticut

July 17, 2023

Lack of Creditor Opposition Isn’t Grounds for Extending an Expiring Automatic Stay

A repeat filer in chapter 13 must show ‘clear and convincing evidence’ of improved financial condition to warrant an extension of the automatic stay under Section 362(c)(3)(B), Chief Judge Taddonio says.

3rd Circuit, Pennsylvania, Pennsylvania Western District

July 13, 2023

Equitable Tolling Cannot Extend the Deadline for a Dischargeability Objection

The Third Circuit lauded Bankruptcy Judge Craig Goldblatt for a ‘well-reasoned’ opinion correctly interpreting Supreme Court authority.

3rd Circuit

July 12, 2023

Bartenwerfer Doesn’t Apply if the Debtor Isn’t a Partner or Agent, Bankruptcy Judge Says

Bankruptcy Judge Klinette H. Kindred declined to expand Bartenwerfer by imputing fraud or larceny when the debtor wasn’t a partner or agent.

4th Circuit, Virginia, Virginia Eastern District

July 10, 2023

Judge Kathryn Ferguson Evokes Bob Dylan with Regard to Changing Rules on Setoff

Times are a-changin’ when it comes to setoff against exempt assets.

3rd Circuit, New Jersey

June 26, 2023

Sixth Circuit Staunches the Spread of Equitable Mootness to Chapter 7

Two judges on the Sixth Circuit cast doubt on the validity of the doctrine of equitable mootness, even in chapter 11 reorganizations.

6th Circuit

June 21, 2023

‘13’ Debtors May Deduct their Actual Mortgage Expenses to Arrive at Disposable Income

The Fourth Circuit agreed with the Sixth and Ninth Circuits by allowing chapter 13 debtors to deduct their actual mortgage expenses, not limited by the local standard mortgage deduction.

4th Circuit

June 20, 2023

Trustee Admonished for Filing Suit Reflecting a ‘Disturbing Lack of Judgment’

Providing an adult child with room and board in the family home is not a fraudulent transfer.

2nd Circuit, New York, New York Eastern District

June 16, 2023

Supreme Court: The Bankruptcy Code Waived Tribes’ Sovereign Immunity

The Supreme Court resolved a split of circuits in an opinion that could give support to the notion that arbitration agreements are not enforceable in bankruptcy.

Supreme Court