District court rules that proceeds from a postpetition personal injury claim are ‘additional disposable income’ that ordinarily goes to creditors in a chapter 13 plan.
Although the Supreme Court will soon rule on the permissibility of nonconsensual releases, Bankruptcy Judge Sigler approved a plan with nondebtor releases under existing Eleventh Circuit precedent.
Bankruptcy Judge Russin declines to follow the Third Circuit and adopts the conclusion of bankruptcy courts holding that Sub S status is estate property.