Harris Expanded to Bar Paying Debtor’s Counsel After Conversion from ‘13’
Harris v. Viegelahn bars any payment by a chapter 13 trustee after conversion, not just payments to creditors, Judge LaShonda Hunt says.
Courts Split on Whether Bankruptcy Discharges Future Liability on a Guarantee
Milwaukee district judge rules that bankruptcy does not cut off future liability on a personal guarantee issued before bankruptcy.
Property Held in a Joint Tenancy Leaves the Estate on the Debtor’s Death
If a debtor owns property as a joint tenant with right of survivorship, the trustee has nothing to sell if the debtor dies.
Seventh Circuit Limits a U.S. Court’s Jurisdiction over Creditors Abroad
Foreign creditors not subject to ‘specific personal jurisdiction’ in the U.S. can violate the automatic stay with impunity.
Court:
Indiana Bankruptcy Judge Narrowly Reads the Section 546(e) Safe Harbor
Although a stock purchase and a loan payoff were only one month apart, the two transactions lacked a sufficient nexus to invoke the safe harbor, Bankruptcy Judge James Carr said.
Judge Predicts Seventh Circuit Wouldn’t Halt Earplug Lawsuits Against Nondebtor 3M
Judge Graham in Indianapolis sees the Seventh Circuit as interpreting ‘related to’ jurisdiction narrowly and not inclined to halt lawsuits against nondebtors without a direct effect on the bankrupt estate.
A Solvent Estate Must Be ‘Likely’ to Confer Standing on an Individual Chapter 7 Debtor
The Seventh Circuit doesn’t accept a debtor’s asset schedules as gospel in deciding whether there is appellate standing.
Court:
Assets Sold Free and Clear of a Multi-Employer Pension Plan’s Withdrawal Liability
The Seventh Circuit has yet to rule precisely on whether the bankruptcy court can sell assets free and clear of successor liability.
Change in Decisional Law Requires Plan Amendment in One Year, Seventh Circuit Says
To take advantage of a change in decisional law, a plan must be modified within the time limits imposed by Federal Rule 60(c), the Seventh Circuit says.
Court:
Plan Amendment Barred When Just a Few Claims Had Been Paid After Confirmation
Substantial consummation under Section 1193(b) was defined by the bankruptcy court to mean commencement of distributions to some but not all creditor classes.