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9th Circuit

A Motion to Dismiss an Involuntary Petition Only Postpones Filing a Creditor List

Ninth Circuit BAP balances the need for quickly dealing with an involuntary petition against the petitioners’ right to discovery and a list of creditors.
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Courts Reject BAP Opinion on Estate Property When Individuals Convert from 11 to 7

Individuals in chapter 11 who convert to chapter 7 come out worse that those who convert from chapter 13.
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If It’s Consensual, a Plan Can Discharge a Nondischargeable Debt

A debt that’s been paid in full under state law is discharged even if the debtor never receives a discharge, Judge Klein says.

BAP Opinion Shows How Taggart Changes the Outcome of Contempt Motions

Ninth Circuit BAP says that payment of a secured claim in full automatically terminates the underlying lien, even if the plan doesn’t say so explicitly.
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Stay Annulment Is Ok Just to Avoid Liability for Willful Stay Violation

The debtors didn’t have a great case for a stay violation after filing six chapter 13 petitions and living rent-free for five years.
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U.S. Trustee May Not Appoint an Unsecured Committee in a Municipal Bankruptcy

California judge sides with former Bankruptcy Judge Steven Rhodes by holding that the U.S. Trustee does not have statutory power to appoint an unsecured committee in a chapter 9 case.

Non-Debtor’s Creditors Must Have Notice of Substantive Consolidation, Circuit Says

Equitable nature of substantive consolidation requires notice to creditors of non-debtors who might be affected.
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Ninth Circuit Sides with the FDIC over Ownership of Tax Refunds

An appeal in the Ninth Circuit did not reach the issue to be decided by the Supreme Court in <em>Rodriguez</em>.
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Absolute Priority Doesn’t Require an Individual Debtor to Pay for Exempt Property

BAP holds that an individual in chapter 11 isn’t required to contribute new value to retain exempt property.
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Ninth Circuit BAP Squarely Upholds ‘Chapter 20’: No Lien and No Claim Survive

BAP reversed the bankruptcy court’s ruling that personal liability on a discharged debt was resurrected in ‘chapter 20.
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