Plan Confirmation

Split Grows on Whether a Subchapter V Debtor Must Be ‘Currently’ Engaged in Business

The owner of defunct businesses was held ineligible to be a small business debtor because he was no longer the owner of an operating business. Being a non-owner executive of an operating business didn’t qualify him.

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.

Tempnology Didn’t Undercut the Validity of Equitable Mootness, First Circuit Says

Confirmation appeals in two big cases are dismissed on the same day for equitable mootness.

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.

Third Circuit Upholds Equitable Mootness over a Dissent

Dissenter would have upheld horizontal gifting on the merits.

Another Court Lets the Debtor Keep Appreciation in a Home on Conversion from 13 to 7

Where the courts are split, Idaho judge sides with the Tenth Circuit BAP and allows a chapter 13 debtor to retain post-petition appreciation in the value of a homestead following conversion to chapter 7.