Within the next year, four circuits will have ruled on a split where some lower courts pay chapter 13 trustees and others don’t when dismissal precedes confirmation.
The Seventh Circuit explained how preponderance of the evidence became the standard of proof for turnovers and dischargeability when the Bankruptcy Code replaced the Bankruptcy Act.
A secured lender who doesn’t file a claim doesn’t get paid by the chapter 13 plan and keeps its lien, but can’t reclaim the collateral during the life of the plan.
Chicago’s Judge Cleary didn’t compel arbitration of an affirmative counterclaim by the debtor against the creditor that would be determined in the course of passing on the allowance of the creditor’s proof of claim.