Glomming On to an Entire Insurance Policy Can Be a Voidable Preference, Circuit Says
The insured’s bankruptcy can allow other claimants to recover a preference from one claimant who drew down the policy limit.
Court:
Student Loans Consolidated After Filing Can’t Be Discharged, Even for Undue Hardship
Consolidating student loans after filing creates a post-petition debt that can’t be discharged without filing bankruptcy again.
Nonpurchase Money Debt Service on a Car Isn’t a Deductible ‘Ownership’ Cost in ‘13’
Courts aren’t fully in agreement, but most hold that non-purchase money debt service on a car isn’t an ‘ownership cost’ deducted from current monthly income to arrive at disposable income in chapter 13.
Payments Were Preferences Even Though They Were Made with Insurance Proceeds
A preference opinion from Houston counsels creditors to be cautious when they are expecting payment from insurance.
Government Bar Date Applies to DOE Loans Even When the Servicer Is Private
As long as the student loan is owing to the government, the Fifth Circuit holds that the government bar date applies even when the servicer is a private company.
Court:
Fifth Circuit Adheres to ‘Person Aggrieved’ for Appellate Standing in Bankruptcy
Bankruptcy courts can have subject matter jurisdiction to approve settlements between nondebtors.
Court:
A Suit to Impose a Prepetition Policy Didn’t Violate the Automatic Stay, District Judge Says
Seeking attorneys’ fees from the debtor did not by itself make a postpetition lawsuit subject to the automatic stay.
Fifth Circuit Approves Breakup Fees as ‘Admin’ Expenses or Costs of Sale
The Fifth Circuit avoided deciding whether approval of breakup fees is judged by the more lenient Section 363(b) or the more exacting standard for administrative expenses under Section 503(b).
Court:
Fifth Circuit Reaffirms ‘Person Aggrieved’ as the Standard for Appellate Standing
The Fifth Circuit declined to follow the Ninth Circuit in questioning ‘person aggrieved’ as being inconsistent with recent Supreme Court authority.
Court:
Debt for Selling a Gun Used in a Mass Killing Was Dischargeable
Congress might want to consider closing a dischargeability loophole when it comes to injuries indirectly resulting from commission of a felony.