5th Circuit

Two Judges Agree: A Class with No Votes Isn’t Considered in Confirming a Sub V Plan

One month apart, two Houston bankruptcy judges held that a non-voting class is not deemed to have voted against a plan.

A Debtor Can’t Assign Only Part of an Executory Contract, Fifth Circuit Says

Indemnification rights in an executory contract can’t be assigned without assuming and assigning the entire contract.

Issue Preclusion Saddles Alex Jones with $1.2 Billion in Nondischargeable Debt

Bankruptcy Judge Christopher Lopez of Houston will hold trials that could result in more nondischargeable debt for Alex Jones.

In Sub V, a Class with No Votes Isn’t Considered in Confirming a Chapter 11 Plan

Former Bankruptcy Judge David R. Jones disagreed with a colleague, who had held that a non-voting class is considered as having voted against a plan.

Fifth Circuit Expands Bartenwerfer to Saddle Alter Egos with Nondischargeable Debts

An alter ego may be of the same ilk as a partnership or agency, so there may be no inconsistency between the Fifth Circuit opinion and the Bartenwerfer concurrence.

28 U.S.C. § 1961(a) Requires Post-Judgment Interest, the Fifth Circuit Holds

As a unit of the district courts, bankruptcy courts are required to grant post-judgment interest in adversary proceedings under 28 U.S.C. § 1961(a).

Glomming On to an Entire Insurance Policy Can Be a Voidable Preference, Circuit Says

The insured’s bankruptcy can allow other claimants to recover a preference from one claimant who drew down the policy limit.

Student Loans Consolidated After Filing Can’t Be Discharged, Even for Undue Hardship

Consolidating student loans after filing creates a post-petition debt that can’t be discharged without filing bankruptcy again.

Nonpurchase Money Debt Service on a Car Isn’t a Deductible ‘Ownership’ Cost in ‘13’

Courts aren’t fully in agreement, but most hold that non-purchase money debt service on a car isn’t an ‘ownership cost’ deducted from current monthly income to arrive at disposable income in chapter 13.

Payments Were Preferences Even Though They Were Made with Insurance Proceeds

A preference opinion from Houston counsels creditors to be cautious when they are expecting payment from insurance.