Nonpurchase Money Debt Service on a Car Isn’t a Deductible ‘Ownership’ Cost in ‘13’
Courts aren’t fully in agreement, but most hold that non-purchase money debt service on a car isn’t an ‘ownership cost’ deducted from current monthly income to arrive at disposable income in chapter 13.
Defenses to Preferences Are Considered in Counting an Involuntary Debtor’s Creditors
A former bankruptcy judge, now a district judge, makes important law on involuntary petitions.
‘13’ Plans Already in Default on March 27 May Be Extended Under the CARES Act
Judge Grabill finds nothing in Section 1329(d) to preclude extending the duration of a plan if payments were already in default when the CARES Act was enacted on March 27.
Fifth Circuit’s Seminal Reed Decision Not Followed in Chapter 13
Bankruptcy judge finds no statutory power for a chapter 13 trustee to prosecute a lawsuit that the debtor was judicially estopped for pursuing.
Sanctions Upheld Against ‘Nationwide’ Law Firm for Violating Section 526
Law firm suspended 90 days for multiple violations of rules of professional conduct.
District Court Allows 401(k) Contributions in Chapter 13 Up to the IRS Limits
Lower courts split three ways on 401(k) contributions and the calculation of disposable income in chapter 13.
Prefiling Expenses Can’t Be Reimbursed in a Chapter 13 Plan in Western Louisiana
Debtor’s counsel can’t recover prefiling expenses in a ‘no money down’ bankruptcy in the W.D. La.
Interim Fee Awards in Chapter 13 Are OK Before Conversion
District judge changes local practice in the bankruptcy court on interim awards in chapter 13.
Failing to Purchase Health Insurance Won’t Result in a Priority Tax Claim
The exaction for failure to purchase health insurance under the ACA is a tax for constitutional purposes but not a tax under the Bankruptcy Code, New Orleans judge rules.
Counsel Must Eat Filing Fees in ‘No-Money-Down’ Chapter 13s
Lawyers can’t be reimbursed for advancing filing fees through fee applications or ‘no-look’ fees.