Large Medical Bills Held Not to Be ‘Consumer’ Debts
Courts are split on whether large medical bills are consumer debts that invoke the means test and can bar relief in chapter 7.
Courts Deeply Split on Social Security Benefits in the Chapter 13 ‘Abuse’ Test
Michigan judges disagree about the court’s ability to consider Social Security benefits in deciding whether a chapter plan was proposed in good faith.
Another Court Approves an Arrangement for Paying Most Chapter 7 Fees After Filing
Careful drafting and copious documentation are required for a bifurcated fee arrangement to pass muster in chapter 7.
Circuit Judge Questions Applicability of Veil Piercing and Alter Ego to Trusts
Sixth Circuit upholds dismissal of claims for reverse veil piercing and reverse alter ego.
Court:
Sixth Circuit Gives Primacy to the Bankruptcy Court in Rejecting Power Contracts
Over a dissent, the Sixth Circuit holds that FERC may offer its opinion but may not bar a bankruptcy court from rejecting a power purchase agreement after considering the public interest.
Court:
Case Shows How Taggart Tilted the Scale Toward Lenders Accused of Contempt
An ambiguous demand letter violated the discharge injunction, but the lender was not held in contempt in light of Taggart.
Sixth Circuit Might Rule on Deductions for Contributions to Retirement Accounts
Courts are split on whether chapter 13 debtors may deduct voluntary contributions to retirement accounts from ‘disposable income.’
Another Judge Clamps Down on Third-Party Releases in a Major Reorganization
Extinguishing contingent environmental claims doesn’t comply with the Sixth Circuit’s Dow Corning test, Judge Koschik says.
Insurance Policy Excluding Coverage for Causing Bankruptcy Is Unenforceable
A ‘runoff’ policy purchased after filing is a continuation of a pre-bankruptcy policy, district judge says.
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.