Detroit District Judge Includes Social Security Benefits in the Chapter 13 ‘Abuse’ Test
Although Social Security benefits are not subject to the “operation of any bankruptcy or insolvency law,” judge says they can be considered in deciding whether someone should be allowed to confirm a chapter 13 plan or have a chapter 7 case dismissed for ‘abuse.’
Seven-Year Chapter 13 Stretchout Isn’t Available for Plans Confirmed After March 27
Two judges agree that the CARES Act amendment allowing chapter 13 plans to run for seven years is applicable only to plans confirmed before March 27.
Judge Shefferly Confines Viegelahn to Its Facts
If a chapter 13 plan isn’t confirmed, the debtor’s counsel is paid.
HAVEN Act May Be Employed to Reduce Payments Under a Confirmed Chapter 13 Plan
Judge Shefferly writes a complicated opinion on the retroactivity of the HAVEN Act to cases filed prior to enactment.
Courts Deeply Split on Social Security Benefits in the Chapter 13 ‘Abuse’ Test
Michigan judges disagree about the court’s ability to consider Social Security benefits in deciding whether a chapter plan was proposed in good faith.
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.