October 02, 2024
A Vote for a Plan After the Deadline Won’t Be Counted, Judge Blise Says
Because ‘excusable neglect’ won’t allow a late vote to be counted, counsel must solicit votes on a plan before the voting deadline.
7th Circuit, Wisconsin, Wisconsin Eastern DistrictOctober 01, 2024
Delaware Judge Sets the Standards for Nondebtor Releases Following Purdue
Nondebtor releases are valid whether the creditor votes for or against the plan, as long as notice to opt out was clear and conspicuous.
3rd Circuit, DelawareSeptember 13, 2024
Sub V Trustee May Be Discharged When the Debtor Makes Plan Payments
Bankruptcy Judge Larson administratively closed a Sub V case after substantial consummation.
5th Circuit, Texas, Texas Northern DistrictSeptember 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, MassachusettsAugust 15, 2024
Another Bankruptcy Judge Decided that Sub V Classes with No Votes Aren’t Accepting
Bankruptcy Judge Paul Bonapfel differed with two judges in Houston by holding that a nonaccepting class in Subchapter V means that a plan must be confirmed in cramdown.
11th Circuit, Georgia, Georgia Northern DistrictAugust 09, 2024
Nondischargeability Is a ‘Thing’ for Corporate Subchapter V Debtors, Judge Thorne Says
The tide is turning against corporate Sub V debtors. Two bankruptcy judges now side with two circuits in holding that debts of corporate debtors can be nondischargeable.
7th Circuit, Illinois, Illinois Northern DistrictJuly 16, 2024
An Order Finding Ineligibility for Sub V Is a Final, Appealable Order
A decision by a district judge in Idaho may or may not be irreconcilable with a Ninth Circuit BAP decision that a finding of eligibility for Sub V is interlocutory and not appealable.
9th Circuit, IdahoJuly 08, 2024
Courts Are Now Split on Ignoring Nonvoting Classes in Subchapter V Plans
Disagreeing with two bankruptcy courts in Houston, Miami’s Judge Isicoff holds that a Sub V plan with a nonvoting class can be confirmed only as a nonconsensual plan.
11th Circuit, Florida, Florida Southern DistrictJuly 05, 2024
A Claim Is Unliquidated if It Requires the Exercise of Judgment or Discretion
Tort claims are usually unliquidated, but a contract claim is liquidated if it’s precisely determinable by agreement or operation of law, Judge Lori Vaughan says.
11th Circuit, Florida, Florida Middle DistrictJune 20, 2024
Corporate Debts in Sub V Can Be Nondischargeable, Judge Says, Differing with His BAP
Bankruptcy Judge Hercher agreed with the results in the Fourth and Fifth Circuits but disagreed with some of the appeals courts’ logic.
9th Circuit, Oregon