Judge David Thuma explains why a chapter 11 debtor in possession and a subsequent liquidating trust are different clients for the purpose of a conflict analysis, at least when the committee has confirmed a liquidating plan.
Courts are split when it comes to deciding whether the confirmation date or the filing date should be used to value a secured lender’s collateral in cramdown.
Judge Jacobvitz told counsel for chapter 13 debtors how to write their engagement agreements to ensure being paid from funds held by the trustee if the case converts to chapter 7 before confirmation.
A minority of courts hold that a suit in bankruptcy court can violate the automatic stay if based on a claim that could have been brought before bankruptcy and did not arise under the Bankruptcy Code.
Although a lawsuit against the archbishop violated the automatic stay, Judge Thuma of Albuquerque declined to impose sanctions because precedent was ‘spotty or nonexistent.’
