September 28, 2018

Security Interest Perfected on the Filing Date Remains Valid if It Lapses Later

The addition of Section 362(b)(3) is held not to affect the ‘freeze rule’ with regard to lapsing security interests.

4th Circuit, Maryland

September 24, 2018

Chapter 7 Trustee Is Paid in a Case Converted to Chapter 13

Courts split on allowing compensation to a chapter 7 trustee when the case is converted to chapter 13 before distributions were made.

1st Circuit, Massachusetts

September 21, 2018

Chicago Judge Refuses to Confirm a ‘Step’ Chapter 13 Plan

Judge Barnes won’t allow a chapter 13 debtor’s counsel to be paid at the expense of secured creditors.

7th Circuit, Illinois, Illinois Northern District

September 20, 2018

Courts Split over Interest on Unsecured Claims in 100% Chapter 13 Plans

‘Value’ doesn’t mean ‘present value’ in Section 1325(b)(1)(A), Judge Lorch says.

7th Circuit, Indiana, Indiana Southern District

September 19, 2018

Being Employed Isn’t Enough to Salvage an Individual’s Chapter 11 Discharge

Appeals court talks about discharging a debt when the issue is denial of discharge.

9th Circuit

September 14, 2018

Exemption Claim Overrides the Government’s Right of Setoff, District Judge Says

Courts are divided when an exemption claim collides with the government’s right of setoff.

4th Circuit, Virginia, Virginia Eastern District

September 13, 2018

Requiring Conduit Mortgage Payments Is Ok Despite Costing the Debtor $5,300

Bankruptcy judge says a chapter 13 debtor receives ‘several benefits’ from paying 8% in commissions on mortgage payments through the trustee.

4th Circuit, North Carolina, North Carolina Eastern District

September 12, 2018

Major Automatic Stay Issue Inches Toward the Supreme Court

Chicago parking ticket cases to be resolved in the Seventh Circuit.

7th Circuit, Illinois, Illinois Northern District

September 11, 2018

Raising a Circuit Split, Ninth Circuit’s Taggart Opinion Heads for a ‘Cert’ Petition

BAP opinion shows that contempt is virtually impossible to prove in the Ninth Circuit following Taggart.

9th Circuit

September 05, 2018

Chicago District Judge Reestablishes Chapter 13 Debt Limits on Student Loans

Debtors with too much student loan debt are functionally ineligible for any form of bankruptcy relief.

7th Circuit, Illinois, Illinois Northern District