Westlaw Topical Highlights: Bankruptcy, August 19, 2013

August 19, 2013

BankruptcyWestlaw Topical Highlights for Bankruptcy provides summaries of significant federal and state judicial decisions and legislative and administrative activities affecting Bankruptcy law.  A Westlaw subscription is required to access the documents linked from this page.

Plans: Decision denying confirmation of proposed Chapter 11 plan is not final, appealable order.   In re Lindsey 2013 WL 4055273 (C.A.6 (Tenn.)) A decision denying confirmation of a proposed Chapter 11 plan is not a final, appealable order, in that far more than a few ministerial tasks remain to be done after such a decision, the Sixth Circuit Court of Appeals has ruled, noting a split of authority on the issue and following what it characterized as the majority approach. The Court of Appeals noted that it had previously reached the same conclusion in an unpublished decision. (The full-text of the rest of the Topical Highlights is available within Westlaw Next, subscription required)

Bankruptcy Estate: Anti-assignment clause had to be construed narrowly, as inapplicable to claims that trustee sought to assign.  In re MF Global Inc. 2013 WL 3946214 (S.D.N.Y.)

Avoidance: Trustee was entitled to no damages under § 550 despite avoidance of unauthorized postpetition transfer under § 549.  In re Hecker 2013 WL 4017099 (8th Cir.BAP (Minn.))

Discharge: Debt for overpayment of Social Security disability benefits was nondischargeable on “false representation” theory.  In re Pipkin 2013 WL 4038626 (Bkrtcy.W.D.Ark.)

Bankruptcy Estate: Debtor-wife did not have property interest, of kind required to support exemption claim.  In re James 2013 WL 4038716 (Bkrtcy.W.D.Ark.)

Plans: Conditional-payment language of proposed Chapter 13 plan did not satisfy “best interests of creditors” test.  In re Engle 2013 WL 4038625 (Bkrtcy.S.D.Ohio)

Discharge: Reaffirmation of debt on “underwater” motor vehicle was not in debtor’s best interest.   In re Cockrell 2013 WL 4047184 (Bkrtcy.W.D.Ark)

Debtor Protections: Debtor was entitled only to limited damages for willful stay violation.  In re Young 2013 WL 4038717 (Bkrtcy.W.D.Ark.)

Appeals: Creditor’s request for certification of direct appeal to the Court of Appeals would be denied.  In re Alonso 2013 WL 4042241 (Bkrtcy.M.D.Fla.)

Claims: Ex-wife’s claim was “in the nature of support” though not denominated as such in the parties’ prepetition divorce settlement agreement.  In re Bub 2013 WL 3811206 (Bkrtcy.E.D.N.Y.)

Discharge: Former spouse’s actions in case did not result in reduction of, or change nature of, her domestic support obligation (DSO) claim.  In re Talsma 2013 WL 4009026 (Bkrtcy.N.D.Tex.)

Jury: Creditor sued for willfully violating automatic stay had no Seventh Amendment right to jury trial.  In re Calderon 2013 WL 4068213 (Bkrtcy.E.D.Ark.).

Plans: “principal residence” analysis looks to mortgage documents, not to property’s status on petition date.  In re Proctor 2013 WL 3787424 (Bkrtcy.E.D.N.C.)

Avoidance: Deed of trust, which failed to sufficiently describe the obligation secured, could be avoided by Chapter 7 trustee.  In re Skumpija 2013 WL 3897721 (Bkrtcy.E.D.N.C.)

Bankruptcy Estate: Payment from corporation that debtor controlled was not exempt “earnings,” but profits from business.  In re Im 2013 WL 3943280 (Bkrtcy.M.D.Fla.)

Appeals: Dismissal of case mooted debtor’s appeal from order summarily dismissing adversary proceeding.  In re Melo 2013 WL 4082219 (1st Cir.BAP (Mass.))

Claims: Creditor’s obligation to Chapter 7 estate was prepetition debt for setoff purposes.  In re Bolin & Co LLC 2013 WL 2302078 (C.A.2 (Conn.))

Plans: Debtors proposed plans in good faith, even though they paid in five years what they easily could have paid in less than three.  In re McGehan 2013 WL 4069524 (Bkrtcy.D.Colo.)

Avoidance: Debtor’s expulsion from limited liability companies (LLCs) was not “on account of” any antecedent debt.  In re Garcia 2013 WL 4036312 (Bkrtcy.E.D.N.Y.)

Discharge: Reckless, if not fraudulent, intent could be inferred from totality of circumstances.  In re Davis 2013 WL 3923265 (Bkrtcy.D.S.C.)