Wisconsin

When Inherited Property Becomes Property of the Debtor’s Bankruptcy Estate

Being an heir by itself doesn’t bring a decedent’s estate into the heir’s bankruptcy estate.

Chapter 13 Debtor Can’t Sue to Avoid an Unperfected Mortgage, District Judge Says

Wisconsin district judge implies that a chapter 13 debtor might obtain ‘derivative standing’ to avoid an unperfected mortgage.

Plans Longer than 5 Years Can’t Be Amended Now Because Section 1329(d) Has Expired

A plan longer than five years must revert to a five-year plan now that Congress has allowed Section 1329(d) to expire, Judge Hanan says.

Courts Split on Whether Bankruptcy Discharges Future Liability on a Guarantee

Milwaukee district judge rules that bankruptcy does not cut off future liability on a personal guarantee issued before bankruptcy.

Objections to Priority Claims May Follow Confirmation of a Chapter 13 Plan

Confirming a chapter 13 plan on the assumption that a claim was entitled to priority didn’t bar the debtors from later objecting to the priority of the claim.

Discharge Cuts Off Future Liability on a Guaranty, Some Courts Hold on a Split

The ‘conduct’ test in the Seventh Circuit, not the ‘accrual test,’ determines when a claim arose and whether it was discharged.

Costs of a Disciplinary Proceeding Held Nondischargeable Under Section 523(a)(7)

Another court strains to explain why costs incurred by disciplinary authorities were not in compensation for “actual pecuniary loss.”

Courts Are Split on Whether Counsel Fees Are Considered in the Chapter 13 Best Interests Test

Deferred payments to unsecured creditors in a chapter 13 plan must equal the present value of the distributions required by the best interests test, Judge Halfenger says.

Espinosa Doesn’t Forgive All Procedural Defects in Confirmation, Judge Ludwig Says

To sell free and clear, someone with an interest in the property must receive the notice required for service of a summons and complaint. Actual notice doesn’t suffice.

Chapter 12 Farmer Plan May Pay Impaired Secured Creditors Directly

The lender’s consent to direct payments by the family farmer persuaded Judge Furay to overrule the chapter 12 trustee’s objection to the plan.

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