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Consumer Case Law Update

Case Law Update (2020 Midwestern Virtual Bankruptcy Institute)

Frank W. Koger Memorial Lecture: Bankruptcy as a Social Safety Net: Policy Considerations in a Time of Pandemic

‘13’ Plans Already in Default on March 27 May Be Extended Under the CARES Act

Judge Grabill finds nothing in Section 1329(d) to preclude extending the duration of a plan if payments were already in default when the CARES Act was enacted on March 27.

Chapter 13 Debtors Retain Appreciation in Property After Conversion or Plan Amendment

On an issue where the courts are split, the Tenth Circuit BAP sides with debtors and allows them to retain postpetition appreciation in the value of assets that were in the estate on filing.

Fourth Circuit Stands Alone in Limiting Chapter 13 Plan Modifications

Eleventh Circuit joins the majority of circuits by holding that unforeseen, changed circumstances are not required to modify a chapter 13 plan.

Seven-Year Chapter 13 Stretchout Isn’t Available for Plans Confirmed After March 27

Two judges agree that the CARES Act amendment allowing chapter 13 plans to run for seven years is applicable only to plans confirmed before March 27.

Consumer Panel: Hot Topics & More

Reversing the BAP, Ninth Circuit Allows Chapter 13 Plans with Estimated Durations

The Ninth Circuit allows chapter 13 debtors on their own to accelerate payments to creditors and secure their discharges more quickly without modifying their plans.

Fifth Circuit Bans Molina Provisions in Chapter 13 Plans

Court cannot impose a nonstatutory provision on a chapter 13 ‘full payment’ plan that restricts the debtor’s right to modify a confirmed plan.