Louisiana

Additional Committee for Commercial Creditors Appointed in Archdiocese Bankruptcy

Judge Grabill would have given commercial creditors either their own committee or special counsel given the different interests of sexual abuse claimants.

Defenses to Preferences Are Considered in Counting an Involuntary Debtor’s Creditors

A former bankruptcy judge, now a district judge, makes important law on involuntary petitions.

‘13’ Plans Already in Default on March 27 May Be Extended Under the CARES Act

Judge Grabill finds nothing in Section 1329(d) to preclude extending the duration of a plan if payments were already in default when the CARES Act was enacted on March 27.

Surety Bonds Aren’t Executory Contracts and Can’t Be Assumed Even if They Are

Insurance companies must nail down the treatment of performance bonds before plan confirmation.

Increasingly Popular SBRA Permits Restructuring Personal Guarantees of Corporate Debt

More than 600 cases have already been filed under the SBRA since subchapter V of chapter 11 became effective in February.

Fifth Circuit’s Seminal Reed Decision Not Followed in Chapter 13

Bankruptcy judge finds no statutory power for a chapter 13 trustee to prosecute a lawsuit that the debtor was judicially estopped for pursuing.

Appellate Jurisdiction Doesn’t Terminate on Dismissal of the Underlying Bankruptcy

New Orleans district judge finds discretion in Fifth and Ninth Circuit authority for jurisdiction over an appeal after dismissal of the underlying bankruptcy case.

Sanctions Upheld Against ‘Nationwide’ Law Firm for Violating Section 526

Law firm suspended 90 days for multiple violations of rules of professional conduct.

Specific Request Required for ‘Admin’ Claim after Contract Rejection

A creditor’s expenses in removing its equipment after contract rejection is not entitled to administrative status.

District Court Allows 401(k) Contributions in Chapter 13 Up to the IRS Limits

Lower courts split three ways on 401(k) contributions and the calculation of disposable income in chapter 13.

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