Louisiana

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.

Prefiling Expenses Can’t Be Reimbursed in a Chapter 13 Plan in Western Louisiana

Debtor’s counsel can’t recover prefiling expenses in a ‘no money down’ bankruptcy in the W.D. La.

Leased but Unused Personal Property Qualifies for an Administrative Claim

Circuits are split on requiring use of leased equipment before allowing an administrative claim.

Interim Fee Awards in Chapter 13 Are OK Before Conversion

District judge changes local practice in the bankruptcy court on interim awards in chapter 13.