Michigan

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.

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Michigan Court Allows Curing a Chapter 13 Payment Default After Five Years

Some lower courts don’t allow chapter 13 plan payments after five years, but two circuits do.

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Wildcard Exemption Covered a Prepetition Malpractice Claim

Judge Dales explains how Section 522(g) does not limit, but rather expands, a debtor’s exemptions.

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Michigan Western District

Terminating a Lease for Default Doesn’t Invoke the § 362(b)(10) Stay Exception

Lower courts are split on whether terminating a nonresidential lease for default means there is no automatic stay.

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A Bogus Claim May Beat Summary Judgment, but It Won’t Reach a Jury

A defense that fails the ‘laugh test’ still beats a summary judgment motion, district judge says.

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Sovereign Immunity Fully Insulates a Tribe from Lawsuits

Sovereign immunity protects a tribe even after successful veil piercing.

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BAPCPA Limits Remedies Against Debtors Who Don’t Reaffirm or Surrender

‘Stay and pay’ may not be permissible, but the remedies can be toothless.

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“Substantial Contribution” Claim Allowed in Chapter 13

Split grows on whether ‘substantial contribution’ claims are limited to chapters 9 and 11.

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PACA Trust Claims Don’t Defeat the Power to Use Cash Collateral

PACA trust creditors can’t hold a chapter 11 debtor hostage, judge rules.

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