Westlaw Topical Highlights: Bankruptcy, July 8, 2013

July 8, 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.

Case Administration: Court did not abuse its discretion in dismissing Chapter 7 case as abusive.  In re Weixel 2013 WL 3243563 (6th Cir.BAP (Ohio))  A bankruptcy court did not abuse its discretion in dismissing the debtors’ Chapter 7 case as abusive based upon the totality of circumstances of their financial situation, given the debtors’ failure to make any effort to adjust their upscale lifestyle as demonstrated, inter alia, by their failure to seek more affordable housing and continued expenditures on entertainment. The bankruptcy case was not filed in response to any unforeseen calamity but to deal with debtors’ significant accumulation of consumer debt. 2013 WL 3243563  (The full-text of the rest of the Topical Highlights are available within Westlaw Next, subscription required)

Debtor Protections: Debtor stated claim against university for its alleged stay violation in refusing to release her educational transcript.  In re Aleckna 2013 WL 3291812 (Bkrtcy.M.D.Pa.)

Plans: Statute dealing with disposition of undistributed plan payments had to be interpreted narrowly.  In re Clements 2013 WL 3270422 (Bkrtcy.E.D.Pa.)

Plans: Social Security income must be considered in the evaluation of the feasibility of a Chapter 13 plan.  Mort Ranta v. Gorman 2013 WL 3286252 (C.A.4 (Va.))

Case Administration: Second, successive Chapter 11 case could be dismissed as “bad faith” filing.  In re PM Cross, LLC 2013 WL 3188726 (Bkrtcy.D.N.H.)

Professionals: doctrine precluded lawsuit against Chapter 7 trustees brought by debtors’ son.  Alexander v. Hedback 2013 WL 3242189 (C.A.8 (Minn.))

Claims: Proposed compromise was fair and equitable and in estate’s best interests, warranting its approval.  In re Fundamental Long Term Care, Inc. 2013 WL 3185075 (Bkrtcy.M.D.Fla.)

Debtor Protections: Cause existed for bankruptcy court to modify stay sua sponte so as to allow pending actions against debtor to proceed.  In re Concepcion 2013 WL 3291816 (Bkrtcy.D.Puerto Rico)

Avoidance: Debtor seeking to avoid fixing of judicial liens on her residence could not deduct liquidation cost from value of property.  In re Wolmer 2013 WL 3297989 (Bkrtcy.D.Conn.)

Discharge: Court lacked equitable power to grant relief from rule setting deadline for filing challenge to dischargeability of debts.  Anwar v. Johnson 2013 WL 3306327 (C.A.9 (Ariz.))

Avoidance: Contract assumption defense barred trustee’s pursuit of preference action.  In re MPF Holding U.S. LLC 2013 WL 3096979 (Bkrtcy.S.D.Tex.)

Avoidance: Debtor’s estimated withdrawal liability had to included in insolvency analysis for constructive fraudulent transfer claims.  In re Checker Motors Corp. 2013 WL 3279791 (Bkrtcy.W.D.Mich.)