Congress Must Decide: May Chapter 13 Debtors Contribute to 401(k) Plans?
Courts are split on whether chapter 13 effectively prohibits debtors from making voluntary contributions to 401(k) plans.
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Circuit Split on U.S. Trustee Fees Likely Won’t Reach the Supreme Court Until Fall 2022
Judge Hoffman sets up Sixth Circuit to opine on the circuit split regarding the constitutionality of the 2018 increase in fees for the U.S. Trustee system.
Publication Notice Won’t Suffice for Creditors with Recorded Property Interests
Actual notice is required even for contingent liabilities not shown on financial statements, the Sixth Circuit holds.
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Sixth Circuit Creates a Split by Requiring Dismissal of an Abusive Chapter 13 Filing
Disagreeing with two other circuits, the Sixth Circuit finds no power in the bankruptcy court to avoid dismissing a chapter 13 case even if the debtor filed repeatedly in bad faith to avoid foreclosure.
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Having Nondischargeable Debts Doesn’t Entitle a Chapter 7 Debtor to Object to Claims
Courts are split on whether having nondischargeable debts gives an individual chapter 7 debtor standing to object to claims.
Sixth Circuit Permits Nondebtor Family Members to Continue the Family Business
Circuit Judge Sutton shied away from making a wife liable for her husband’s debts, even though the wife carried on the husband’s farming business.
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BAP Adheres to ‘Person Aggrieved’ Despite Dicta from the Sixth Circuit
The Supreme Court and the Sixth Circuit both questioned the continuing validity of doctrines of prudential standing, such as ‘person aggrieved.’
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Judge Kendig Implies that Failure to Run a Lien Search is Tantamount to Malpractice
The debtors’ lawyer’s lack of diligence allowed the creditor to invoke laches and beat a belated motion to avoid a lien that impaired a homestead exemption.
‘Accrual Test’ Survives to Say Whether the Debtor or the Estate Owns a Claim
Are there two tests for the existence of a claim, one test for claims against the debtor and another for claims by the debtor?
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Entire Garnishment Is a Preference, Even What the Creditor’s Lawyer Keeps
The appeals court sticks to basics and rejects several clever arguments to beat a preference.
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