Seven-Year Chapter 13 Stretchout Isn’t Available for Plans Confirmed After March 27
Two judges agree that the CARES Act amendment allowing chapter 13 plans to run for seven years is applicable only to plans confirmed before March 27.
Reversing the BAP, Ninth Circuit Allows Chapter 13 Plans with Estimated Durations
The Ninth Circuit allows chapter 13 debtors on their own to accelerate payments to creditors and secure their discharges more quickly without modifying their plans.
Fifth Circuit Bans Molina Provisions in Chapter 13 Plans
Court cannot impose a nonstatutory provision on a chapter 13 ‘full payment’ plan that restricts the debtor’s right to modify a confirmed plan.
Eleventh Circuit Holds that a Chapter 13 Plan Alone Can’t Assume a Lease or Contract
In the first court of appeals decision on the topic, the Eleventh Circuit holds that the chapter 13 trustee alone has power to assume a lease or contract.
Sixth Circuit Allows Chapter 13 Debtors to Continue Retirement Plan Contributions
Sixth Circuit is the first court of appeals to take sides on a lower court split and opine that continuing to make voluntary contributions to retirement plans is excluded from ‘disposable income.’
An Exempt Asset Effectively Loses Its Exemption in Chapter 13
Lower courts are split on whether an exempt asset is included in the calculation of “projected disposable income” in chapter 13.
Chapter 13 Debtor Can’t Keep Postpetition Appreciation in Value of Stock Options
Two recent decisions by the 9th Circuit BAP seem in conflict on a chapter 13 debtor’s ability to retain appreciation in the value of assets.
Mortgage Servicer Hit with $300,000 in Actual and Punitive Damages for Stay Violation
The creditor was guilty of an automatic stay violation, but Taggart insulated the creditor from liability for a discharge violation for continuation of the same conduct.