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ABI Journal

December 23, 2024

‘Accrual Test’ Again Survives to Say Whether the Debtor or the Estate Owns a Claim

There are two tests again for the existence of a claim, one test for claims against the debtor and another for claims by the debtor.

11th Circuit, Florida, Florida Middle District

December 18, 2024

Debtor’s Appeal from Chapter 13 Plan Confirmation Held Equitably Moot

District court equates distribution to creditors in chapter 13 to substantial consummation of a chapter 11 plan.

4th Circuit, Virginia, Virginia Eastern District

December 09, 2024

Having Committed Fraud Doesn’t Prevent a Debtor from Vacating a Judicial Lien

If a creditor’s judicial lien is avoided, how can the creditor collect the underlying debt if it’s excepted from discharge?

10th Circuit, New Mexico

December 06, 2024

Giving the Debtor a Grace Period to Cure Isn’t Extending a Plan Beyond Five Years

In the Third Circuit, it’s possible to cure a payment default under a chapter 13 play beyond five years, district judge says in affirming the bankruptcy court.

3rd Circuit, New Jersey

December 04, 2024

For Nondischargeability, a Bankruptcy Court Can Find a Securities Law Violation

A decision from a state or federal court before bankruptcy finding a securities law violation isn’t required for nondischargeability under Section 523(a)(19).

9th Circuit

November 27, 2024

Creating a Circuit Split, Ninth Circuit Allows Retirement Contributions in Chapter 13

The Ninth Circuit split with the Sixth Circuit in the interpretation of the ‘hanging paragraph’ in Section 541(b)(7). Courts are divided four ways on whether or how much a ‘13’ debtor may contribute to voluntary retirement plans after filing.

9th Circuit

November 20, 2024

BAP Rejects Due Process Attack for Denial of ‘13’ Trustee Fees on Dismissal

Ninth Circuit BAP says there is no due process problem with denial of chapter 13 trustee fees if dismissal precedes confirmation.

9th Circuit

November 15, 2024

Sub V Trustee in Chapter 11 Can’t Be Enlisted to Pursue Avoidance Actions

District judge decides that an individual debtor has standing to appeal conversion from Subchapter V of chapter 11 to chapter 7.

2nd Circuit, New York, New York Southern District

November 14, 2024

Barring Use of an Online Payment Platform Was an Automatic Stay Violation

Bankruptcy Judge Michelle Harner decided that a mortgage servicer must allow a chapter 13 debtor’s continued use of an online payment platform.

4th Circuit, Maryland

November 12, 2024

Judicial Immunity Can Protect a Trustee when Barton Doesn’t Apply, Circuit Says

When a trustee mistakenly seizes a nondebtor’s property, the Barton doctrine by itself doesn’t protect the trustee, but judicial immunity does.

11th Circuit