Deeply Subordinated Creditor Barred from Voting or Objecting to Plan Confirmation
Subordination agreement did not transfer voting rights, but prudential standing nevertheless barred the subordinated creditor from participating in confirmation, Judge Somers says.
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Personal Injury Settlement Not Included in Calculating Projected Disposable Income
Judge McNamara of Denver allowed chapter 13 debtors to keep all of a $46,500 personal injury settlement received before filing.
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Inability to Cover Accruing Interest Was Pivotal on Discharging Student Loans
Eligibility for an income-based repayment program is relevant only on the third Brunner test regarding good faith.
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Amount of an Exemption Isn’t Required to Make an Order Final, Circuit Majority Says
Tenth Circuit majority believes that the grant or denial of an exemption is sufficient to make the order final, even if the bankruptcy court hasn’t ruled on the extent or amount of the exemption.
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Ponzi-Schemer’s Assistant Liable Under UFTA Even Without Knowledge of Fraud
Providing a necessary service for a Ponzi-schemer was enough to make an employee liable to return compensation as a fraudulent transfer.
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Automatic Stay Applies Automatically to the Archbishop of a Bankrupt Archdiocese
Although a lawsuit against the archbishop violated the automatic stay, Judge Thuma of Albuquerque declined to impose sanctions because precedent was ‘spotty or nonexistent.’
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The Circuits Are Split: Are Referral Fees Paid by a Ponzi Scheme Avoidable?
Utah district judge decides that referral fees paid by a Ponzi scheme aren’t avoidable unless the recipient had reason to suspect there was fraud.
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Federal Credit Union Held to Be a ‘Governmental Unit’ for All Purposes
Although federal credit unions are not controlled by the government, they are governmental units under the Bankruptcy Code, Judge Jacobvitz says.
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Deceased Chapter 13 Debtor Excused from Taking Financial Management Course
Courts are split on whether the estate of a deceased chapter 13 debtor can receive a discharge if the debtor had not completed a financial management course.
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Bankruptcy Judge Won’t Follow BAP Authority on Derivative Standing for Creditors
Bankruptcy Judge Thuma admonishes the parties to settle and not waste money on litigation that should go to sexual abuse victims.
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