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ABI Journal

October 16, 2024

Two Courts Rule on Chapter 7 Debtors’ Standing for Objections to Sales and Claims

Virginia’s Judge Keith Phillips sides with courts that bar lenders from cutting deals with trustees to eliminate debtors’ homestead exemptions.

4th Circuit, Virginia, Virginia Eastern District

October 07, 2024

Third Circuit Has a Broad View of ‘Related To’ Jurisdiction After Plan Confirmation

A post-confirmation lawsuit to generate funds to pay a chapter 13 plan establishes ‘related to’ jurisdiction for noncore claims.

3rd Circuit

October 04, 2024

Even if Ineligible for Chapter 13, Ninth Circuit Says the Debtor Can Still Dismiss

In a split decision, the Ninth Circuit majority held that a chapter 13 debtor has the right to dismiss under Section 1307(b) before the bankruptcy court decides whether the filing was in good faith.

9th Circuit

September 10, 2024

Chapter 11 Plan May Impair a Mortgage When the Debtor Is Not Liable on the Debt

A chapter 11 plan may not impair the rights of a mortgage lender against a co-owner who is not in bankruptcy.

1st Circuit, Massachusetts

September 09, 2024

Ninth Circuit BAP Jealously Protects a ‘13’ Debtor’s Right to Dismiss

Debtors paid a high price for their counsel’s inattention to their needs after plan confirmation.

9th Circuit

August 27, 2024

Sovereign Immunity Is Difficult (Impossible?) to Waive in the Ninth Circuit

Reversing the BAP, the Ninth Circuit held that counsel’s oral waiver of sovereign immunity did not bind the state.

9th Circuit

August 26, 2024

A Wholly Unsecured Lien May Be Stripped Off Even if It Predated Ownership

Bankruptcy Judge Michelle Harner held that a wholly unsecured, subordinate lien may be stripped off in chapter 13 even if the lien arose before the debtor owned the property.

4th Circuit, Maryland

August 23, 2024

Chapter 13 Debtors Keep Property that Was Unintentionally Undisclosed

Revesting allowed chapter 13 debtors to retain property that was innocently undisclosed.

1st Circuit, Massachusetts

August 19, 2024

Revesting on Discharge in Chapter 13 Can’t Be Mandated, Fourth Circuit Says

Local rules and local standard plans cannot force a chapter 13 debtor to disregard one of the options in Section 1327 and require revesting of estate assets on discharge.

4th Circuit

August 13, 2024

Denial of a Debtor’s Motion to Dismiss a Petition Isn’t Appealable, Second Circuit Says

In practical effect, the Second Circuit’s opinion means that a chapter 7 debtor may never appeal denial of a motion to dismiss a petition.

2nd Circuit