Issue Preclusion Saddles Alex Jones with $1.2 Billion in Nondischargeable Debt
Bankruptcy Judge Christopher Lopez of Houston will hold trials that could result in more nondischargeable debt for Alex Jones.
In Sub V, a Class with No Votes Isn’t Considered in Confirming a Chapter 11 Plan
Former Bankruptcy Judge David R. Jones disagreed with a colleague, who had held that a non-voting class is considered as having voted against a plan.
Student Loans Consolidated After Filing Can’t Be Discharged, Even for Undue Hardship
Consolidating student loans after filing creates a post-petition debt that can’t be discharged without filing bankruptcy again.
Payments Were Preferences Even Though They Were Made with Insurance Proceeds
A preference opinion from Houston counsels creditors to be cautious when they are expecting payment from insurance.
Debt for Selling a Gun Used in a Mass Killing Was Dischargeable
Congress might want to consider closing a dischargeability loophole when it comes to injuries indirectly resulting from commission of a felony.
State Exemption for Life Insurance Policies Continues to Be Under Attack in Texas
Defeated three times, a chapter 7 trustee is appealing to the Fifth Circuit to end the exemption for whole-life policies in Texas.
Judge Isgur Allows 401(k) Contributions in Chapter 13 Up to What the IRS Code Allows
Contributions to 401(k) plans are deducted from ‘projected disposable income,’ even though the debtor was not making contributions before filing
Later Developments Don’t Undo Subchapter V Eligibility, Houston Judge Says
In the Alex Jones corporate Subchapter V case, Bankruptcy Judge Christopher Lopez said that the later chapter 11 filing by Jones himself, with about $1.5 billion in debt, didn’t kick the corporate debtor out of Subchapter V and into ‘ordinary’ chapter 11.
A Trust Didn’t Defeat a Prior, Perfected Security Interest in Accounts Receivable
The district court characterized the agreement not as creating a trust but as a device designed to win priority over a prior, perfected security interest.
State Exemption for Life Insurance Policies Under Attack in Texas
Bankruptcy Judges Gargotta and Davis both held that the amended Texas exemption statute exempts life insurance policies and their cash surrender values.