Georgia

Georgia Southern District

Nondischargeability in Sub V Only Applies When It’s a Nonconsensual, Cramdown Plan

A creditor must control a class before its debt can become nondischargeable in Subchapter V.

Court :

Georgia Middle District

Bankruptcy Courts Don’t Agree on What’s a ‘Consensual’ Nondebtor Release

Bankruptcy Judge Paul Baisier of Atlanta disagreed with Bankruptcy Judge Craig Goldblatt of Delaware about requiring creditors to vote before they are saddled with nondebtor releases in chapter 11 plans.

Court :

Another Bankruptcy Judge Decided that Sub V Classes with No Votes Aren’t Accepting

Bankruptcy Judge Paul Bonapfel differed with two judges in Houston by holding that a nonaccepting class in Subchapter V means that a plan must be confirmed in cramdown.

Court :

For ‘Sub V’ Eligibility, Count the Debt of Affiliates Liquidating in Chapter 7

Bankruptcy court disregards SEC regulations defining ‘voting securities’ in deciding whether a Subchapter V debtor has ‘affiliates’ in bankruptcy.

Court :

Georgia Judge Approves a Chapter 11 Plan with Nonconsensual, Nondebtor Releases

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.

Court :

Assets Purchased with Exempt Social Security Benefits Are Not Themselves Exempt

Two judges in Georgia say that personal property is not exempt even if the purchase was traceable to Social Security benefits.

Court :

Georgia Southern District

Lender Was Lucky to Recover Anything on an Unauthorized $5.2 Million Loan

The bankruptcy court was accorded wide discretion in deciding how to treat a $5.2 million loan that was neither disclosed to nor approved by the bankruptcy court.

Court :