Michigan Eastern District

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).

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Noncompete and Confidentiality Agreements Can’t Be Rejected as Executory Contracts

If a breach results only in a right to equitable relief, there is no ‘claim’ and thus no executory contract.

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Evidence of Intent to ‘Hinder’ Wasn’t Sufficient to Deny Discharge, District Judge Says

The bankruptcy court’s inference of intent to hinder the trustee wasn’t supported by the evidence, the district judge says in reversing a denial discharge.

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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.

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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.

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The Refund of an Early Withdrawal Penalty from an IRA Was Held Exempt

Although not held in an IRA, a refund by the IRS of a withdrawal penalty was exempt because state law permits tracing proceeds of exemptions, Judge Opperman says.

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