Courts Split on Modifying a ‘13’ Plan to Surrender a Car with the Deficiency Unsecured
Bankruptcy Judge Hunt in Salt Lake City split with the Sixth Circuit, which held that a debtor can’t modify a plan by surrendering a car but must continue paying the auto lender in full.
Bad Faith Chapter 13 Debtor Permitted to Dismiss Is Tagged with a 2-Year Bar to Refiling
Bankruptcy Judge Meisel implores the Third Circuit to follow other circuits on dismissing bad faith debtors’ chapter 13 petitions but with bars to refiling.
A Deceased Debtor’s Survivor Can Make Chapter 13 Plan Payments from Her Income
Even though a deceased chapter 13 debtor has no regular income, the plan can still be confirmed.
Eleventh Circuit: Chapter 13 Debtor Keeps Settlement of a Personal Injury Claim
What’s a settlement of a personal injury claim? Is it income earmarked for creditors in chapter 13?
The New Value Corollary to the Absolute-Priority Rule Codified for Individuals in Chapter 11
The New Value Corollary to the Absolute-Priority Rule Codified for Individuals in Chapter 11 By Donald L. Swanson The absolute-priority rule has always prevented individuals from reorganizing under chapter 11. The absolute-priority rule is a chapter 11 plan-confirmation
Unexpected Income Required Modification of a Chapter 13 Plan
Judge Rebecca B. Connelly allowed a debtor couple to retain enough unexpected income to pay deferred maintenance on the debtors’ home.
Sixth Circuit Restricts Ability to Surrender Collateral and Modify a Chapter 13 Plan
Once a chapter 13 plan is confirmed, a debtor in the Sixth Circuit may not surrender collateral and treat the deficiency as an unsecured claim.
Benchnotes August 2025
Benchnotes By Aaron M. Kaufman, Bradley D. Pack and Christina Sanfelippo 1 Ninth Circuit: Section 1322(c)(2) Allows Bifurcation of Short-Term Loans Secured Against Debtors’ Primary Residences In Mission Hen LLC v. Lee, 2 the Ninth Circuit considered whether the debtor’s