A Plan Appeal Wasn’t Equitably Moot, Even Though Reversal Might Rejigger New Equity
A district court in Houston denied a motion to dismiss a confirmation appeal as equitably moot, although reversal might alter ownership of the reorganized debtor.
Sufficiency of Preference and Fraudulent Transfer Complaints Described by Judge Goldblatt
To defeat motions to dismiss, preference and fraudulent transfer complaints need not contain all the information to be learned in discovery, Bankruptcy Judge Craig Goldblatt says.
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.
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.
Substantive Consolidation May Proceed by Motion, District Judge Says
A district court in Florida upheld Bankruptcy Judge Peter Russin in holding that substantive consolidation does not require an adversary proceeding, a summons or a complaint.
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.
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.
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.
Judge Goldblatt Engrafts the Standing Rules from Truck Insurance onto Chapter 7
At least with regard to standing for objections to claims, Delaware’s Judge Craig Goldblatt believes that the Truck Insurance standard for chapter 11 also applies in chapter 7.
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.