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ABI Journal

November 05, 2024

Fully Secured, Nonrecourse Creditors Can Be Involuntary Petitioners, BAP Says

An involuntary petitioner whose claim was paid after filing is still counted as an involuntary petitioner, the Ninth Circuit BAP says.

9th Circuit

November 04, 2024

Releasing a Lien Under Section 1325(a)(5)(B) Is Different When There Are Co-Debtors

Despite Section 1325(a)(5)(B), an auto lender was entitled to retain a lien when there were co-debtors.

7th Circuit, Illinois, Illinois Southern District

October 31, 2024

A Chapter 13 Plan Amended Today Cannot Have an 84-Month Duration

The expiration of Section 1329(d) in March 2022 means that 84-month chapter 13 plans amended now must revert to 60-month plans.

9th Circuit, Oregon

October 30, 2024

A Retirement Plan that’s Not ‘Tax-Qualified’ Is Still Excluded from Estate Property

Declining to create a circuit split, Third Circuit Judge Thomas Ambro held that a retirement plan structured according to ERISA is excluded from estate property even if transactions by the trust violated ERISA or IRS Code regulations.

3rd Circuit

October 29, 2024

Aggressive Bankruptcy Planning Didn’t Result in the Loss of Discharge

Sixth Circuit held that preferring one creditor with a nondischargeable claim before bankruptcy isn’t intent to hinder, delay or defraud.

6th Circuit

October 25, 2024

Receipt of a Chapter 7 Discharge Doesn’t Preclude Conversion to Chapter 13

Small state exemptions mean that some low-income debtors can lose their homes in chapters 7 and 13 if there is equity.

8th Circuit, Missouri, Missouri Eastern District

October 24, 2024

On Conversion to ‘7,’ Admin Expenses in ‘13’ Must Be Paid, Harris Notwithstanding

When chapter 13 cases are converted to chapter 7 before confirmation, bankruptcy courts are split on whether the broad language in Harris v. Viegelahn bars chapter 13 trustees from paying administrative expenses incurred before conversion.

1st Circuit, Puerto Rico

October 23, 2024

Equitable Tolling Can Extend Statutes of Limitations Under Section 546(a)

Dilatory actions by a debtor tolled statutes of limitations for a trustee’s suit against a third party.

3rd Circuit, Pennsylvania, Pennsylvania Eastern District

October 22, 2024

Child Tax Credits: Are They Fully or Partially Exempt Under State Law?

Tenth Circuit will be deciding whether an entire child tax credit is exempt or only a pro rata portion.

10th Circuit, Colorado

October 21, 2024

Trustees’ Commissions Are Based on Distributions Made to Co-Owners of Property Sold

Bankruptcy courts are divided on whether the calculation of a trustee’s commissions includes distributions made to co-owners of property that the trustee has sold.

4th Circuit, Maryland