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Delaware and New York District Courts Split on Permissibility of Non-Debtor Releases

Upholding confirmation of the Boy Scouts’ chapter 11 plan, the district judge in Delaware disagreed with his counterpart in New York who found no statutory power to impose non-consensual, non-debtor third-party releases.

Proceeds from Post-Petition Sales Aren’t to Be Turned Over to the Chapter 13 Trustee

Before confirmation, district judge says that a chapter 13 debtor is only required to turn over disposable income to a trustee, not proceeds from a post-petition sale of property.

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