Washington

Chapter 13 Debtors Lost Appreciation in Property After Conversion to ‘7’

On an issue where the courts are split, a judge in Washington State says that the debtors lose the post-petition appreciation in the value of estate property when a chapter 13 case converts to chapter 7.

Promising Payment in Full to Everyone Doesn’t Warrant Confirmation by Itself

Chapter 11 can’t modify a nondebtor’s guarantee of a debtor’s obligations, absent consent from the lender.

District Judge Finds No Loopholes in Ninth Circuit Aversion to Third-Party Releases

Free-and-clear sale won’t evade the Ninth Circuit’s rule against third-party, non-debtor releases.

There Are No Fractions of a Household in Tacoma, Washington

Judge Lynch of Tacoma follows Idaho’s Judge Pappas in determining the size of a ‘household’ when someone is a part-time resident.

Courts Split on Arbitration over Dischargeability of Student Loans

Seattle judge disagrees with Florida judge on arbitration over bar study loans, while Second Circuit ponders the issue.

Involuntary Servitude Claim Raised in Involuntary Chapter 11

Did Congress make another constitutional mistake in BAPCPA?

Successor Liability Overrides Sale Free and Clear on Labor Law Claim

363 sale provides no protection from a union’s claim for successor liability.