Rochelle's Daily Wire

A corporate debtor with no income and no operating business could convert an involuntary chapter 7 case to Subchapter V of chapter 11.

Reversing the bankruptcy court, the Chicago district judge follows the Fourth and Fifth Circuits and rejects a contrary holding by the Ninth Circuit BAP.

Although a ‘true-up’ cannot be imposed, a debtor could employ a ‘true-up’ to confirm an otherwise nonconfirmable plan.

Despite Section 1325(a)(5)(B), an auto lender was entitled to retain a lien when there were co-debtors.

Chicago’s Bankruptcy Judge Timothy Barnes explained eight years ago why bankruptcy stays do not require personal jurisdiction, unlike injunctions in receiverships.

The tide is turning against corporate Sub V debtors. Two bankruptcy judges now side with two circuits in holding that debts of corporate debtors can be nondischargeable.

After Purdue, two bankruptcy judges now say that preliminary injunctions protecting nondebtors are permissible to foster successful chapter 11 reorganizations.

Circuits are split on whether claims for contempt of the discharge injunction must be brought in the bankruptcy court that issued the discharge.

Courts are split on whether the confirmation requirements in Section 1325(b)(1) apply when a debtor seeks confirmation of an amended plan.

Nondischargeability for Sub V corporate debtors is sub judice in the Fifth Circuit.