7th Circuit

Chapter 13 Debtor Can’t Sue to Avoid an Unperfected Mortgage, District Judge Says

Wisconsin district judge implies that a chapter 13 debtor might obtain ‘derivative standing’ to avoid an unperfected mortgage.

Plans Longer than 5 Years Can’t Be Amended Now Because Section 1329(d) Has Expired

A plan longer than five years must revert to a five-year plan now that Congress has allowed Section 1329(d) to expire, Judge Hanan says.

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.

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.

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.