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Michigan Eastern District

Sixth Circuit Might Rule on Deductions for Contributions to Retirement Accounts

Courts are split on whether chapter 13 debtors may deduct voluntary contributions to retirement accounts from ‘disposable income.’

Insurance Policy Excluding Coverage for Causing Bankruptcy Is Unenforceable

A ‘runoff’ policy purchased after filing is a continuation of a pre-bankruptcy policy, district judge says.

Michigan Court Allows Curing a Chapter 13 Payment Default After Five Years

Some lower courts don’t allow chapter 13 plan payments after five years, but two circuits do.

Terminating a Lease for Default Doesn’t Invoke the § 362(b)(10) Stay Exception

Lower courts are split on whether terminating a nonresidential lease for default means there is no automatic stay.

A Bogus Claim May Beat Summary Judgment, but It Won’t Reach a Jury

A defense that fails the ‘laugh test’ still beats a summary judgment motion, district judge says.

Sovereign Immunity Fully Insulates a Tribe from Lawsuits

Sovereign immunity protects a tribe even after successful veil piercing.

BAPCPA Limits Remedies Against Debtors Who Don’t Reaffirm or Surrender

‘Stay and pay’ may not be permissible, but the remedies can be toothless.

“Substantial Contribution” Claim Allowed in Chapter 13

Split grows on whether ‘substantial contribution’ claims are limited to chapters 9 and 11.

Plan Modifications Are Timely if Motion Is Filed Before Last Chapter 13 Plan Payment

Date of filing, not date of hearing, is pivotal on timeliness of chapter 13 plan modifications.

Narrow Ipso Facto Clauses Can Be Unenforceable

Code provisions voiding ipso facto clauses are interpreted broadly.

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