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.
Court:
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.
Court:
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).
Court:
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.
Court:
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.