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ABI Journal

Tennessee Middle District

Sixth Circuit Restricts Ability to Surrender Collateral and Modify a Chapter 13 Plan

Once a chapter 13 plan is confirmed, a debtor in the Sixth Circuit may not surrender collateral and treat the deficiency as an unsecured claim.

Receivership Didn’t Prevent an LLC’s Manager from Filing Bankruptcy for the LLC

Judge Randal Mashburn described what a state court must do in appointing a receiver that would prevent an LLC’s manager from filing a bankruptcy petition.

Debtor Can’t Compel Arbitration on an Involuntary Petition

A creditor can’t be compelled to arbitrate the validity of a claim before the bankruptcy court decides whether the involuntary petitioner’s claim is subject to a bona fide dispute.

‘Reasonable Possibility’ of a Surplus Gives a Debtor Standing in Chapter 7

Due process considerations mean it’s not harmless error if a debtor was denied standing improperly.

Unclaimed Distributions Go to the Treasury, Not to Other Creditors, Judge Says

Tennessee judge changes a practice established in 1995 regarding unclaimed distributions.

False Claims Suits by Governments Are Not Halted by Bankruptcy

Bankruptcy court held to lack exclusive jurisdiction over exceptions to the automatic stay.

Split Grows on Dischargeability of Tax Liability on Late-Filed Returns

Nashville judge holds that late-filed tax debt can sometimes be discharged.