6th Circuit

Sixth Circuit Allows Chapter 13 Debtors to Continue Retirement Plan Contributions

Sixth Circuit is the first court of appeals to take sides on a lower court split and opine that continuing to make voluntary contributions to retirement plans is excluded from ‘disposable income.’
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Judge Shefferly Confines Viegelahn to Its Facts

If a chapter 13 plan isn’t confirmed, the debtor’s counsel is paid.

‘Snapshot’ Rule for Valuation Doesn’t Apply to Compelling Abandonment, Circuit Says

Equity in property at the time of a hearing, not at filing, decides whether the court should compel abandonment, Sixth Circuit says.
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HAVEN Act May Be Employed to Reduce Payments Under a Confirmed Chapter 13 Plan

Judge Shefferly writes a complicated opinion on the retroactivity of the HAVEN Act to cases filed prior to enactment.

Bankruptcy Discharge Cuts Off Future Liability on a Guaranty

Courts are split on whether a personal guaranty survives bankruptcy.
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Large Medical Bills Held Not to Be ‘Consumer’ Debts

Courts are split on whether large medical bills are consumer debts that invoke the means test and can bar relief in chapter 7.

Courts Deeply Split on Social Security Benefits in the Chapter 13 ‘Abuse’ Test

Michigan judges disagree about the court’s ability to consider Social Security benefits in deciding whether a chapter plan was proposed in good faith.

Another Court Approves an Arrangement for Paying Most Chapter 7 Fees After Filing

Careful drafting and copious documentation are required for a bifurcated fee arrangement to pass muster in chapter 7.

Circuit Judge Questions Applicability of Veil Piercing and Alter Ego to Trusts

Sixth Circuit upholds dismissal of claims for reverse veil piercing and reverse alter ego.
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Sixth Circuit Gives Primacy to the Bankruptcy Court in Rejecting Power Contracts

Over a dissent, the Sixth Circuit holds that FERC may offer its opinion but may not bar a bankruptcy court from rejecting a power purchase agreement after considering the public interest.
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