On Conversion to ‘7,’ Admin Expenses in ‘13’ Must Be Paid, Harris Notwithstanding
When chapter 13 cases are converted to chapter 7 before confirmation, bankruptcy courts are split on whether the broad language in Harris v. Viegelahn bars chapter 13 trustees from paying administrative expenses incurred before conversion.
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Chapter 11 Plan May Impair a Mortgage When the Debtor Is Not Liable on the Debt
A chapter 11 plan may not impair the rights of a mortgage lender against a co-owner who is not in bankruptcy.
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Chapter 13 Debtors Keep Property that Was Unintentionally Undisclosed
Revesting allowed chapter 13 debtors to retain property that was innocently undisclosed.
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Circuit Says Retaining Jurisdiction Not Required to Impose Fees Under Section 303(i)
Motions for fees must be made within 14 days of the entry of judgment.
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On a Circuit Split, First Circuit BAP Enforces Deadlines for Joining Involuntary Petitions
The circuits are split on whether a creditor has an ‘unfettered’ right to join as an involuntary petitioner.
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Recoupment of Social Security Benefit Overpayments Is Barred as a Setoff
Medicaid overpayments may be recovered as ‘recoupment’ while Social Security overpayments are attempted setoffs barred by discharge, Bankruptcy Judge Harwood says.
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Another Court Holds that PACA Trusts Do Not Give Rise to Nondischargeable Debts
Violating a PACA trust does not result in ‘defalcation while acting in a fiduciary capacity’ that makes a debt nondischargeable, Bankruptcy Judge Panos says, taking sides with the Eleventh Circuit.
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Substantially Equivalent Value Not Required to Defeat Equitable Disgorgement
The standard for defeating equitable disgorgement is lower than the proof required to fend off receipt of a fraudulent transfer.
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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.
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First Circuit Describes How to Value an Interest in Entireties Property
The value of a debtor’s interest in entireties property isn’t necessarily 50% of the value of the entire property.
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