A Bankrupt Defendant Complicates Filing an Appeal Against Everyone Else
The Sixth Circuit explains how to appeal when the automatic stay prevents an order in a multi-defendant suit from becoming a final order.
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A Stipulated Dismissal Won’t Serve as the Basis for Res Judicata, a/k/a Claim Preclusion
A stipulated dismissal, even with prejudice, doesn’t mean that the claims were ‘actually litigated’ for the purpose of claim preclusion, the Sixth Circuit says.
Dispositions of Marital Property Aren’t Always Beyond the Avoiding Powers
A division of marital property on consent to someone other than a spouse might be a fraudulent transfer.
Courts Are Split on Including a Nonfiling Spouse’s Social Security Benefits
Judge Beth Buchanan decided that the ‘totality of the circumstances’ test for ‘abuse’ doesn’t permit disregarding the exemption for Social Security benefits.
U.S. Trustee Dodged Payment of Attorneys’ Fees Under the Equal Access to Justice Act
The Sixth Circuit holds that a debtor cannot recover attorneys’ fees from the U.S. Trustee under the EAJA in a contested matter, but leaves open the possibility of liability for counsel fees in a losing adversary proceeding.
Discharge Isn’t an Automatic Bar to Conversion from ‘7’ to ‘13’
A district court opinion from Michigan raises the question of whether the Supreme Court’s decision in Marrama is still good law after Law v. Siegel.
Bankruptcy Judge Refuses to Enforce an Arbitration Agreement
An exculpation clause in a chapter 11 plan protected the owner’s counsel from a malpractice suit.
Debtors May Avoid Judicial Liens Under Section 522(f) Securing Nondischargeable Debts
Bankruptcy Judge Alan Koschik declined to follow cases decided before Congress amended Section 522(f) to preclude avoiding judicial liens securing domestic support obligations.
Personal Injury Settlement Was Not ‘Income’ Payable to Creditors in Chapter 13
Memphis Bankruptcy Judge Denise Barnett reads the BAPCPA amendments as excluding personal injury settlements from the calculation of ‘projected disposable income.’
Rising Home Values and Chapter 13: A Deepening Split
When, post-confirmation, a chapter 13 debtor sells his or her home, who gets the benefit of the appreciation: the debtor, or his or her creditors? Judge Randon in Michigan adopted the so-called “estate replenishment approach” and held that sale proceeds derived from post-confirmation appreciation of a home belong to the debtor.