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.

It’s Not Easy for a Lender to Block an LLC from Filing Bankruptcy

A small business debtor must consent for a case to be converted to Subchapter V, Judge Robert Jones says.

‘Gatekeeping’ in the Fifth Circuit May Be Broader than Exculpations

Bankruptcy Judge Jernigan interprets the Fifth Circuit’s Highland Capital opinion to mean that gatekeeping protections are not limited to parties entitled to exculpation in the Fifth Circuit.

Nonseverability Won’t Make a Confirmation Appeal Equitably Moot in the Fifth Circuit

When it comes to overbroad exculpations and nondebtor releases, a nonseverability clause in a chapter 11 plan won’t invoke equitable mootness to dismiss an appeal from confirmation.

Sometimes, a Settlement with No Admission of Liability Can Be Nondischargeable

To avoid automatic nondischargeability, the debtor in the settlement of a fraud suit must deny liability.

A UCC Lien on ‘Accounts’ Won’t Attach to a Postpetition Sale of Real Property

Although a UCC lien on ‘accounts’ would attach outside of bankruptcy to proceeds from the sale of real property, Section 552(b) cuts off attachment if the sale occurs after filing

Judge Gargotta Splits with the Fourth Circuit on Nondischargeability in Subchapter V

The Fourth Circuit had recently held that both individuals and corporations in subchapter V of chapter 11 are barred from discharging debts that are nondischargeable under Section 523(a).