Westlaw Topical Highlights: Bankruptcy, October 21, 2013

October 21, 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: Inheritance received by Chapter 13 debtor postpetition did not provide basis for proposed plan modification.   In re Peebles, 2013 WL 5417135 (Bkrtcy.S.D.Ga.) Non-estate property consisting of an inheritance received by a Chapter 13 debtor more than 180 days postpetition was not included in the debtors’ disposable income. The inheritance thus did not provide a basis for the modification of the debtors’ confirmed plan to increase the plan payments, as proposed by the Chapter 13 trustee.  2013 WL 5417135. (The full-text of the rest of the Topical Highlights is available within Westlaw Next, subscription required).

Discharge: Debtor’s persistent contemptuous behavior resulted in “willful and malicious injury.”  In re Hughes-Birch 2013 WL 5567183 (Bkrtcy.D.Mass.)

Plans: Equitable subordination of claims was not proper remedy for secured creditor’s exclusivity period violation.  In re Charles Street African Methodist Episcopal Church of Boston 2013 WL 5493288 (Bkrtcy.D.Mass.)

 Discharge: Though timing of transfer was suspicious, debtor lacked fraudulent intent as would have warranted denial of discharge.  In re Bowen 2013 WL 5506322 (Bkrtcy.W.D.Va.)

Discharge: Loan agreement between judgment creditors and debtor did not result in partnership or “fiduciary” relationship.  In re Utnehmer 2013 WL 5573198 (9th Cir.BAP (Cal.))

Claims: Whether in pari delicto defense barred trustee’s tort, contract, and other claims could not be decided on motion to dismiss.  In re Infinity Business Group, Inc. 2013 WL 5346415 (Bkrtcy.D.S.C.)

Claims: Proof of claim based on state court judgment had to be allowed.  In re Fundamental Long Term Care, Inc. 2013 WL 3156523 (Bkrtcy.M.D.Fla

Discharge: Conversion claim was prepetition claim, for purposes of debtor’s bankruptcy discharge.  In re Gillespie 2013 WL 4828213 (Bkrtcy.N.D.Cal.)

Bankruptcy Estate: Debtors could not claim exemptions in note payable to their LLC, as opposed to their distributional interests in the LLC.   In re Holt 2013 WL 4864506 (Bkrtcy.D.S.C.)

Case Administration: Chapter 13 case could be converted based on debtor’s bad faith in concealing assets and asset transfers.  In re Killian 2013 WL 5434640 (C.D.Ill.)

Avoidance: There is no general Ponzi-scheme exception to the “safe harbor” provision of bankruptcy avoidance law.  In re Arbco Capital Management, LLP 2013 WL 5346090 (Bkrtcy.S.D.N.Y.)

Plans: Prepetition arrearage under agreement for deed could be cured over time under cure-and-maintenance plan.   In re Curtis 2013 WL 5310472 (Bkrtcy.N.D.Ala.)

Debtor Protections: Foreclosing creditor had standing to move for stay relief in order to evict debtor.

In re Danastorg 2013 WL 5217692 (Bkrtcy.D.Mass.)

Bankruptcy Estate: No exemption fraud existed, such as would relieve trustee of deadline on challenging exemptions claimed. In re James 2013 WL 5574986 (Bkrtcy.E.D.Tenn.)

Avoidance: Transfer of mortgage property at foreclosure sale was not actually or constructively fraudulent. Tow v. Amegy Bank N.A. 2013 WL 5515777 (S.D.Tex.)

Claims: Evidentiary hearing was needed to decide whether electricity qualified as “good” under administrative expense statute.   In re Great Atlantic & Pacific Tea Co., Inc. 2013 WL 5212141 (S.D.N.Y.)

Discharge: Repayment of student loan would impose “undue hardship” on debtor.  In re Smith 2013 WL 5488714 (Bkrtcy.D.Mass.)

Debtor Protections: Defendants willfully violated provision of automatic stay statute proscribing acts to exercise control over estate property.   In re Stewart 2013 WL 5592899 (Bkrtcy.E.D.Mich.)

Plans: Debtors showed sufficient cause to modify confirmed Chapter 13 plan and eliminate balloon payment thereunder.  In re Campbell 2013 WL 5308261 (Bkrtcy.D.N.M.)

Debtor Protections: Court could find bad faith warranting stay relief, even though debtor’s prior filings occurred before movant became creditor.  In re Gray 2013 WL 5272281 (E.D.Pa.)