Courts Are Split on Counting Future Rent Toward the $7.5 Million Debt Cap in Sub V
If future liability on unexpired leases and executory contracts is counted, many companies will be ineligible for Subchapter V of chapter 11.
Debtor May Amend a ‘13’ Plan to Modify the Treatment of a Secured Creditor’s Claim
Chicago Bankruptcy Judge David Cleary followed a decision by then-district Judge David Hamilton and “respectfully” disagreed with decisions by two predecessors on the same bankruptcy bench.
Scheduling a Home with a Low Value Didn’t Protect a ‘13’ Debtor When It Was Sold
In the Fourth Circuit, creditors are compensated when there is a ‘substantial improvement’ in a chapter 13 debtor’s financial condition.
Supreme Court Seems Dubious About Purdue’s Nonconsensual, Nondebtor Releases
At oral argument, the justices were focused on whether the word “appropriate” in Section 1123(b)(6) allows chapter 11 plans to include nonconsensual, nondebtor third-party releases.
A Refinanced Consumer Loan Might Not Be a ‘Consumer Debt,’ Ninth Circuit Says
Refinancing a consumer loan to obtain a lower interest rate might make an individual debtor eligible for chapter 7.
Sub V Plan with Nondebtor Release Approved over Opposition from the Affected Class
A decision from a New York bankruptcy court makes nondebtor releases easier to obtain in Subchapter V than in large, mass tort chapter 11 cases.
Willful Breach of Contract Doesn’t Result in Section 523(a)(6) Nondischargeability
Without allegations of an intentional tort, a willful breach of contract can’t be nondischargeable as a ‘willful and malicious’ injury.
Dispute over Part of a Claim Disqualifies an Involuntary Petitioner
The 2005 amendment to Section 303(b)(1) disqualifies an involuntary petitioner if there is a dispute as to even part of the creditor’s claim.
Ninth Circuit: State Law Can’t Require More than What Rule 3001 Requires for Claim Validity
Reversing the BAP, the Ninth Circuit (erroneously) holds that state law cannot demand more documentation for a proof of claim than Bankruptcy Rule 3001 requires for prima facie validity.
Tenth Circuit BAP Disagrees with the Fourth Circuit on Inapplicability of Article III
The split deepens on whether the jurisdiction of bankruptcy courts is limited by Article ‘case or controversy’ requirements.