‘Related To’ Jurisdiction Is Measured When the Suit Is Filed, Not Later, Circuit Says
Even though subject matter jurisdiction persists when there is no longer an effect on the estate, the court may exercise discretion to dismiss, the Fifth Circuit says.
Absolute Priority Doesn’t Require an Individual Debtor to Pay for Exempt Property
BAP holds that an individual in chapter 11 isn’t required to contribute new value to retain exempt property.
Homestead Exemption Upheld on a House Neither Taxed nor Zoned for Residential Use
Occupancy and intent to be a permanent residence are all that’s needed for a homestead exemption, even if the house violates local ordinances.
District Court Overrides Arbitration on Disputes Regarding Defective Proofs of Claim
Someday, the Supreme Court will decide whether bankruptcy has an exemption from arbitration not available in ordinary commercial litigation.
Default Judgments Are (Sometimes) Nondischargeable Under Issue Preclusion
If the parties litigate but the defendant eventually defaults, the default judgment can result in nondischargeability via issue preclusion, Eleventh Circuit holds.
Michigan Court Allows Curing a Chapter 13 Payment Default After Five Years
Some lower courts don’t allow chapter 13 plan payments after five years, but two circuits do.