Converting from Chapter 7 to Sub V to Liquidate Is Ok, Judge Cleary Says
A corporate debtor with no income and no operating business could convert an involuntary chapter 7 case to Subchapter V of chapter 11.
A Judgment Lien Isn’t Created by Filing a UCC Financing Statement, Judge Furay Says
To obtain a judgment lien, filing a UCC financing statement is no substitute for docketing a judgment.
Chicago District Judge Decides that Sub V Debtors Can Have Nondischargeable Debts
Reversing the bankruptcy court, the Chicago district judge follows the Fourth and Fifth Circuits and rejects a contrary holding by the Ninth Circuit BAP.
Judge Thorne Describes the Quantum of Evidence Needed to Show a Plan Is Fair and Equitable
Although a ‘true-up’ cannot be imposed, a debtor could employ a ‘true-up’ to confirm an otherwise nonconfirmable plan.
Seventh Circuit Dismisses Based on ‘Person Aggrieved’ Without Citing Truck Insurance
A per curiam decision from the Seventh Circuit raises the question of whether Truck Insurance overruled ‘person aggrieved’ sub silentio.
Court:
Releasing a Lien Under Section 1325(a)(5)(B) Is Different When There Are Co-Debtors
Despite Section 1325(a)(5)(B), an auto lender was entitled to retain a lien when there were co-debtors.
Bankruptcy Court Can’t Have Exclusive Jurisdiction over Disputes from a Sale Order
A district judge in Indiana says that a bankruptcy court cannot have exclusive jurisdiction over disputes in the future except in the circumstances specified in Section 1334.
A Vote for a Plan After the Deadline Won’t Be Counted, Judge Blise Says
Because ‘excusable neglect’ won’t allow a late vote to be counted, counsel must solicit votes on a plan before the voting deadline.
Judge Barnes Explained Why Bankruptcy Stays Don’t Require Personal Jurisdiction
Chicago’s Bankruptcy Judge Timothy Barnes explained eight years ago why bankruptcy stays do not require personal jurisdiction, unlike injunctions in receiverships.
Nondischargeability Is a ‘Thing’ for Corporate Subchapter V Debtors, Judge Thorne Says
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.