Legislative Highlights June 2025
Legislative Highlights N.Y. Fed: U.S. Household Debt Increased 1 Percent in Q1 2025; Student Loan Delinquencies Rise Sharply The Federal Reserve Bank of New York’s Center for Microeconomic Data on May 13 1 issued its Quarterly Report on Household Debt and Credit, which
Segal v. Rochelle May Remain Good Law Only in Limited Circumstances
The elaborate definition of ‘estate property’ in Section 541(a) may have superseded the 1966 ‘sufficiently rooted’ analysis in Segal.
No Circuit Split: 4 Circuits Say No ‘13’ Trustee Fees if Dismissal Precedes Confirmation
Although lower courts have disagreed, the Second Circuit joined three other circuits in holding that a standing trustee may not retain the percentage fee when chapter 13 cases are dismissed before confirmation. Consequently, ‘13’ debtors with confirmed plans pay standing trustees’ fees.
A Chapter 11 Debtor May Sometimes Prosecute an Appeal After Conversion to Chapter 7
After conversion, the debtor was entitled to prosecute an appeal at the debtor’s expense when the appeal involved the debtor’s personal liability.
The ‘Domestic Violence’ Stay Exception Applies to Sexual Violence Decades Earlier
Bankruptcy Judge Robert Mark held that the Section 362(b)(2)(A)(v) exception to the automatic stay covers more than imminent or ongoing sexual abuse.
In ‘13,’ a Creditor Wanted Debtors’ Counsels’ Fees to Come Last, Not First
Chicago’s Bankruptcy Judge Donald Cassling nixed an idea that would have made chapter 13 unpalatable for debtors’ counsel.
Equity Won’t Extend the Deadline for Filing a Dischargeability Complaint
The circuits are split on whether equity can extend the 60-day deadline for filing dischargeability complaints.
Ninth Circuit BAP Limits Bartenwerfer on Vicarious Liability for Nondischargeability
The Ninth Circuit BAP explains why Bartenwerfer didn’t open the door to vicarious liability for all forms of nondischargeability in Section 523(a).
‘Notice’ in Rule 3002(c)(7) Means Notice of the Bar Date, Not Notice of the Case
Bankruptcy Judge Scott Grossman adopted the analysis by Bankruptcy Judge Brian Walsh in concluding that creditors are entitled to notice of the claims bar date, not just notice of the filing.
Middle Ground on the Circuit Split over Dismissal vs. Conversion in Chapter 13
Bankruptcy Judge Michael Fagone permits dismissal of a chapter 13 case, but with a bar to refiling within two years.