Alabama Southern District

Alabama Judge Gives a Mixed Message on Who Gets Postpetition P.I. Settlements

District court rules that proceeds from a postpetition personal injury claim are ‘additional disposable income’ that ordinarily goes to creditors in a chapter 13 plan.

Recoveries on Postpetition Tort Recoveries Do (Do Not) Belong to Creditors in ‘13’

Rather than invoking the best interests and disposable income tests for plan confirmation, the Eleventh Circuit may have departed from the statute by ruling that the ‘ability to pay’ gives postpetition tort claims to creditors in chapter 13.

Who Gets Insurance Proceeds When a Car Is ‘Totaled’ in Chapter 13?

Judge Callaway explains when a debtor keeps insurance proceeds and when it goes to creditors under a chapter 13 plan.