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ABI Journal

6th Circuit

Sixth Circuit Restricts Ability to Surrender Collateral and Modify a Chapter 13 Plan

Once a chapter 13 plan is confirmed, a debtor in the Sixth Circuit may not surrender collateral and treat the deficiency as an unsecured claim.

When an Objection Is Required for an Exemption Covering ‘100% of FMV’

Judge Hoffman explains when objections are or aren’t required for exemptions covering ‘100% of FMV’ under the current form 106C.

Chapter 13 Plan Modifications Can Reduce the Commitment Period and the Payments

A decision by Bankruptcy Judge Maria Oxholm explains why chapter 13 plan amendments sometimes may be easier after confirmation than before.

Bankruptcy Courts Disagree on Paying a ‘7’ Trustee Who Made No Distributions

Courts are split on whether chapter 7 trustees can be paid on another theory when the trustee had made no distributions to creditors under Section 326(a).

In Stalking Horse Sales, Courts Have Flexibility to Reopen Bidding After the Deadline

The debtor’s duty to land the best price for an asset can overcome the winning bidder’s expectation that sale procedures will be enforced rigorously.

The ‘Probate Exception’ to Federal Subject Matter Jurisdiction Is Narrow

The ‘probate exception’ to federal subject matter jurisdiction does not prevent bankruptcy courts from basing decisions on state trusts and estates law, except in limited circumstances.

A Good Faith Objection to a Sale Cannot Be Raised the First Time on Appeal

The existence of a competing bidder does not put the buyer on notice of an ‘adverse interest’ to avoid dismissal for mootness under Section 363(m), the Sixth Circuit BAP says.

District Courts Disagree on Enforcing an ‘Automatic Stay’ Protecting Nondebtors

A district judge in Ohio declined to sit as an appellate court by deciding whether a bankruptcy court in another state had properly ‘spread’ the automatic stay.

A Consensual Judgment Is a Judgment Lien Subject to Avoidance Under Section 522(f)

‘Obtained by’ legal proceedings, a consent judgment is still a judgment lien that can be avoided if it impairs an exemption.

A Magistrate Judge Refuses to Enforce an Order Staying Actions Against Nondebtors

A magistrate judge decided that a bankruptcy court’s order from another district halting suits against nondebtors was unenforceable because it was not an ‘injunction’ made under Section 105(a).