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6th Circuit

Sixth Circuit Panel Splits on the Attributes of a ‘Governmental Unit’

Sixth Circuit narrowly rules that a community health service is not a governmental unit and is thus eligible for chapter 11.

Sixth Circuit Expounds on a Loophole in the Rooker-Feldman Doctrine

Bankruptcy court may overrule a state court that rules incorrectly on the discharge of a debt.

Terminating a Lease for Default Doesn’t Invoke the § 362(b)(10) Stay Exception

Lower courts are split on whether terminating a nonresidential lease for default means there is no automatic stay.

Appeal from Interpretation of a Prior Sale Order Is Reviewed for Abuse of Discretion

A creditor can’t have derivative standing if the trustee already sold the claim, BAP says.

Mandatory Abstention Applies to an Entire Adversary Proceeding, Not Individual Claims

Abstention can’t be used to peel off some claims from an adversary proceeding, the BAP says.

Penalties for Fraud Are Nondischargeable Despite Chapter 13’s ‘Superdischarge’

Fraudsters get no sympathy from the Sixth Circuit on dischargeability.

Debtors Benefit When Trust Law Meets Bankruptcy Law

A trust designed to defeat the claims of creditors can sometimes hold up in bankruptcy.

Still No Universal Test for Bifurcating an Auto Loan in Chapter 13

Courts are groping to define ‘personal use’ because Congress didn’t.

Nondischargeability Is No Bar to Feasibility in an Individual Chapter 11

Holders of nondischargeable claims can be forced to accept pro rata payments during the life of the plan and collect the remainder only after discharge or dismissal, the BAP rules.

Tennessee Judge Rules Back Child Support Is Not Estate Property

Courts are split on whether child support arrears are estate property.