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6th Circuit

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.

Filed and Unfiled Claims Not Aggregated for Chapter 12 Eligibility, BAP Holds

Courts are split on aggregating filed and non-filed claims in calculating chapter 12 eligibility.

Kentucky Judge Refuses to Approve a ‘No Seal, No Deal’ Settlement

The parties’ wishes are insufficient to justify sealing.