College Tuition Made a Debtor Ineligible for Chapter 7
Chapter 7 can be inaccessible for a married debtor living in the same household with a nonfiling spouse who has substantial income.
Benchnotes October 2023
By Bradley D. Pack, Aaron M. Kaufman and Christina Sanfelippo Debtor Must Pay Default Rate Interest to Cure Defaulted Debt; Takes Deep Dive into Difficult Issue While plenty has been written on the issue of what a debtor must do to “cure” and reinstate an accelerated
Circuits Are Now Split on Who Gets Appreciation in a Home When a ‘13’ Converts to ‘7’
Splitting with the Tenth Circuit, the Ninth Circuit holds that chapter 13 debtors lose post-petition appreciation in a home if the case converts to chapter 7.
Recoveries on Postpetition Tort Recoveries Do (Do Not) Belong to Creditors in ‘13’
Rather than invoking the best interests and disposable income tests for plan confirmation, the Eleventh Circuit may have departed from the statute by ruling that the ‘ability to pay’ gives postpetition tort claims to creditors in chapter 13.
Benchnotes August 2023
Benchnotes By Aaron M. Kaufman, Bradley D. Pack and Christina Sanfelippo Bankruptcy Court Limits Bartenwerfer to Partnership or Agency Debts, Finding It Inapplicable to Fraudulent-Transferee Liability Can the recipient of a fraudulent transfer discharge the claim in
‘13’ Debtors May Deduct their Actual Mortgage Expenses to Arrive at Disposable Income
The Fourth Circuit agreed with the Sixth and Ninth Circuits by allowing chapter 13 debtors to deduct their actual mortgage expenses, not limited by the local standard mortgage deduction.
BAP Gives Post-Petition Appreciation to Chapter 7 Estate on Conversion from Chapter 13
In a rising real estate market, chapter 13 debtors risk losing their homes if they sell or convert to chapter 7.
Courts Split on Plan Amendments Requiring Substantial, Unanticipated Changes
Eighth Circuit BAP ‘at a minimum’ requires substantial changes in financial condition for a debtor to modify a confirmed chapter 12 plan.