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The Seventh Circuit Considers Whether a Chapter 13 Trustee May Take A Fee If the Case is Dismissed Pre-Confirmation
The Seventh Circuit, in the case of In re Johnson, Case No. 23-2212 (7th Cir. 2023), accepted a direct appeal from the Bankruptcy Court for the Northern District of Illinois. The bankruptcy court held that a chapter 13 trustee may not deduct her fee if a chapter 13 case is dismissed without having a plan confirmed. The court […]
Tags: bankruptcy, dismissal prior to confirmation, trustee fees
November 14, 2023
The Fourth Circuit Rules That Parties in an Adversary Proceeding Cannot Manufacture a Final Judgment
In Kiviti v. Bhatt, No. 22-1216, 2023 U.S. App. LEXIS 24415 (4th Cir. Sep. 14, 2023), the court ruled that the parties in an adversary proceeding cannot manufacture a final judgment to appeal an otherwise interlocutory order. Further, the mootness doctrine employed by Article III courts to determine whether a case or controversy exists does not […]
Tags: appeal, bankruptcy, finality of judgment, Section 157(b)(1)
September 20, 2023
The 8th Circuit Considers Whether Post-Petition Equity Increases During a Chapter 13 Are Part of The Bankruptcy Estate in a Converted Chapter 7
UPDATE: This 8th Circuit has since issued a decision on this case. Click here to view our article discussing their ruling. The 8th Circuit Court of Appeals is considering the issue whether the increased value of the debtor’s residence during a chapter 13 bankruptcy is part of the chapter 7 estate upon conversion. This is […]
Tags: bankruptcy, post-petition increase in equity
September 19, 2023
The Ninth Circuit Reviews Whether an Exemption of “100% of FMV” Protects the Entire Value of the Property Including any Post-Petition Appreciation
UPDATE: The Ninth Circuit has since decided this case. Click here to read our article discussing their ruling. The Ninth Circuit Court of Appeals is considering whether an exemption of “100% of FMV” protects all the equity in the property, over and above the allowable exemption, and any appreciation in value post-petition. The Ninth Circuit […]
Tags: 100% of FMV, bankruptcy, homestead exemption
The 9th Circuit Considers Whether a Chapter 13 Debtor Has A Statutory Right to Dismiss
UPDATE: The Ninth Circuit has since decided this case. Click here to read our article discussing their ruling. The Ninth Circuit is considering whether a chapter 13 debtor’s statutory right to dismiss his bankruptcy is precluded by bad faith or ineligibility under section 109(e). Judgment creditor TICO Construction Company, Inc. (“TICO”) objecte to the debtor’s […]
The Supreme Court Rules Native American Tribes Do Not Have Sovereign Immunity From The Bankruptcy Code.
On June 15, 2023, the court ruled that Native American tribes are subject to the automatic stay and discharge injunction of the Bankruptcy Code. “We conclude that the Bankruptcy Code unequivocally abrogates the sovereign immunity of any and every government that possesses the power to assert such immunity. Federally recognized tribes undeniably fit that description; […]
Tags: bankruptcy, governmental unit, native tribes, sovereign immunity
June 15, 2023
The 9th Circuit Adopts NCBRC and NACBA’s Amici Argument Holding A Chapter 13 Trustee May Not Collect A Percentage Fee If A Chapter 13 Case Is Dismissed Before Confirmation
On June 12, 2023, the Ninth Circuit Court of Appeals held that 11 U.S.C. § 1326(b) requires a Chapter 13 trustee to turnover all plan payments to the Debtor upon dismissal before confirmation, without deducting her statutory fee. See Steedman v. McCallister (In re Evans), No. 22-35216, 2023 U.S. App. LEXIS 14571 (9th Cir. June 12, […]
Tags: bankruptcy, pre-confirmation dismissal
June 13, 2023
The Fourth Circuit Examines Whether a Local Rule Can Mandate The Timing When Property Vests in Chapter 13 Cases
UPDATE: The Fourth Circuit has since decided this case. Click here to read our article discussing their ruling. The Fourth Circuit is considering the issue whether a local bankruptcy rule can dictate the timing of vesting of estate property in chapter 13 cases. This is an appeal from the United States District Court in Trantham v. Tate, 647 […]
Tags: bankruptcy, local form plan, permissive provisions, vesting
June 4, 2023
The Supreme Court Takes the Issue of Tribal Immunity Under Consideration
UPDATE: The Supreme Court has since ruled on this case. Click here to read our discussion of their ruling. On April 24, 2023, the Supreme Court heard oral arguments in the case of In re Coughlin, Case No. 22-227. The question presented is whether the Bankruptcy Code expresses unequivocally Congress’s intent to abrogate the sovereign […]
Tags: bankruptcy, governmental unit, native tribes, sovereign immunity
The Fourth Circuit Considers Whether Restitution Ordered by a Maryland Court Upon is Non-Dischargeable
UPDATE: The Fourth Circuit has since issued a decision on this case. Click here to read our article discussing their ruling. The Fourth Circuit is considering whether restitution included in a “probation before judgment” is non-dischargeable in Chapter 13 under 11 U.S.C. §1328 (a)(3). Section 1328(a)(3) provides that “the court shall grant the debtor a […]
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