Plan Confirmation

Debtors Can Have Their Cake and Eat It, Too

April 2021

Promising Payment in Full to Everyone Doesn’t Warrant Confirmation by Itself

Chapter 11 can’t modify a nondebtor’s guarantee of a debtor’s obligations, absent consent from the lender.

Third Circuit Upholds Equitable Mootness over a Dissent

Dissenter would have upheld horizontal gifting on the merits.

Another Court Lets the Debtor Keep Appreciation in a Home on Conversion from 13 to 7

Where the courts are split, Idaho judge sides with the Tenth Circuit BAP and allows a chapter 13 debtor to retain post-petition appreciation in the value of a homestead following conversion to chapter 7.

Chapter 12 Farmer Plan May Pay Impaired Secured Creditors Directly

The lender’s consent to direct payments by the family farmer persuaded Judge Furay to overrule the chapter 12 trustee’s objection to the plan.

Fraud and the Implications for Claims Trading and Plans