Michigan Western District

Michigan Judge Prefers Dismissal if Conversion Won’t Benefit Unsecured Creditors

The parties judged the chapter 11 case a success, even though unsecured creditors got zilch.

Case Shows How Taggart Tilted the Scale Toward Lenders Accused of Contempt

An ambiguous demand letter violated the discharge injunction, but the lender was not held in contempt in light of Taggart.

Wildcard Exemption Covered a Prepetition Malpractice Claim

Judge Dales explains how Section 522(g) does not limit, but rather expands, a debtor’s exemptions.

PACA Trust Claims Don’t Defeat the Power to Use Cash Collateral

PACA trust creditors can’t hold a chapter 11 debtor hostage, judge rules.

Fee Application After Completion of Plan Payments Comes Too Late

Fees awarded after discharge are wiped out like everything else.

Courts Split on Allowing Creditors to Sue on Claims Covered by D&O Policy

Insured vs. insured exclusion bars suit by creditors, but not by chapter 11 trustee.