Detroit Judge Criticizes the Second Circuit’s Tribune Decision on the Safe Harbor
The Supreme Court is considering whether to review another case defining the safe harbor in Section 546(e).
Substituting a Trustee as the Party in Interest Isn’t Amending the Complaint
Even after the statute of limitations has run, a trustee may be substituted for the debtor as the real party in interest, Michigan district judge says.
Michigan Judge Prefers Dismissal if Conversion Won’t Benefit Unsecured Creditors
The parties judged the chapter 11 case a success, even though unsecured creditors got zilch.
District’s Model Chapter 13 Plan Violates the Code by Requiring More than 60 Payments
Detroit’s Judge Randon holds that a chapter 13 plan’s five-year duration begins to run from the first payment, not from confirmation.
An Undersecured Lender Can Indirectly Waive the Right to an 1111(b) Election
Agreeing to bidding procedures can waive the right to make the Section 1111(b) election, Judge Hoffman says.
Parental Support Isn’t Counted on Discharge of Student Loans, Judge Kendig Says
Private charity is not considered to be part of a debtor’s income under the first part of the Brunner test.
Detroit District Judge Includes Social Security Benefits in the Chapter 13 ‘Abuse’ Test
Although Social Security benefits are not subject to the “operation of any bankruptcy or insolvency law,” judge says they can be considered in deciding whether someone should be allowed to confirm a chapter 13 plan or have a chapter 7 case dismissed for ‘abuse.’
Seven-Year Chapter 13 Stretchout Isn’t Available for Plans Confirmed After March 27
Two judges agree that the CARES Act amendment allowing chapter 13 plans to run for seven years is applicable only to plans confirmed before March 27.
Sixth Circuit Broadly Interprets Section 959(b) to Cover State Pension Plans
A split panel on the Sixth Circuit held that Section 959(b) barred the debtor from halting participation in a state employees’ pension plan.
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Another Workaround Following the Prohibition of Nunc Pro Tunc Orders
The Supreme Court hasn’t prohibited paying counsel fees for services rendered before the entry of a retention order, Judge Preston says.