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ABI Journal

Michigan Eastern District

Detroit Judge Criticizes the Second Circuit’s Tribune Decision on the Safe Harbor

The Supreme Court is considering whether to review another case defining the safe harbor in Section 546(e).

Substituting a Trustee as the Party in Interest Isn’t Amending the Complaint

Even after the statute of limitations has run, a trustee may be substituted for the debtor as the real party in interest, Michigan district judge says.

District’s Model Chapter 13 Plan Violates the Code by Requiring More than 60 Payments

Detroit’s Judge Randon holds that a chapter 13 plan’s five-year duration begins to run from the first payment, not from confirmation.

Detroit District Judge Includes Social Security Benefits in the Chapter 13 ‘Abuse’ Test

Although Social Security benefits are not subject to the “operation of any bankruptcy or insolvency law,” judge says they can be considered in deciding whether someone should be allowed to confirm a chapter 13 plan or have a chapter 7 case dismissed for ‘abuse.’

Seven-Year Chapter 13 Stretchout Isn’t Available for Plans Confirmed After March 27

Two judges agree that the CARES Act amendment allowing chapter 13 plans to run for seven years is applicable only to plans confirmed before March 27.

Judge Shefferly Confines Viegelahn to Its Facts

If a chapter 13 plan isn’t confirmed, the debtor’s counsel is paid.

HAVEN Act May Be Employed to Reduce Payments Under a Confirmed Chapter 13 Plan

Judge Shefferly writes a complicated opinion on the retroactivity of the HAVEN Act to cases filed prior to enactment.

Courts Deeply Split on Social Security Benefits in the Chapter 13 ‘Abuse’ Test

Michigan judges disagree about the court’s ability to consider Social Security benefits in deciding whether a chapter plan was proposed in good faith.

Sixth Circuit Might Rule on Deductions for Contributions to Retirement Accounts

Courts are split on whether chapter 13 debtors may deduct voluntary contributions to retirement accounts from ‘disposable income.’

Insurance Policy Excluding Coverage for Causing Bankruptcy Is Unenforceable

A ‘runoff’ policy purchased after filing is a continuation of a pre-bankruptcy policy, district judge says.