A Business that Never Generated Income Is Eligible for Subchapter V, Judge Norman Says
The definition of ‘small business’ uses the word ‘activities,’ not ‘operations,’ making nonoperating small business eligible for Subchapter V.
Jackson Walker May Depose the U.S. Trustee in the Fee Dispute over Nondisclosure
The bankruptcy judge in Houston denied the U.S. Trustee’s motion to quash deposition subpoenas in the fight over disgorgement of fees for failure to disclose an allegedly close relationship between the judge and a firm lawyer.
A Plan Appeal Wasn’t Equitably Moot, Even Though Reversal Might Rejigger New Equity
A district court in Houston denied a motion to dismiss a confirmation appeal as equitably moot, although reversal might alter ownership of the reorganized debtor.
The ‘Insured vs. Insured’ Exclusion in a D&O Policy Doesn’t Apply to a DIP
When a DIP sues a former officer, the bankruptcy ‘exception’ in a D&O policy provides coverage when the ‘insured vs. insured’ exclusion would otherwise deny coverage.
Sub V Trustee May Be Discharged When the Debtor Makes Plan Payments
Bankruptcy Judge Larson administratively closed a Sub V case after substantial consummation.
Houston Judge Confirms an ‘Opt-Out’ Plan with Nondebtor Releases
In the first opinion on the issue after Purdue, Bankruptcy Judge Christopher Lopez holds that Purdue did not change Fifth Circuit law where ‘hundreds’ of ‘opt-out’ plans have been confirmed with nondebtor releases.
Payments Made with Insurance Nevertheless Were Preferences, District Judge Says
Payments from insurance must be properly structured to avoid preference liability.
Three Years Is the ‘Default’ Duration for a Subchapter V Plan, Judge Robinson Says
The Code doesn’t contain any rules specifying when a Subchapter V plan should have a five-year duration rather than three years.
Sub V Trustee Lacks Standing to Pursue an Adversary Proceeding for the Debtor
Bankruptcy Judge Eduardo Rodriguez of Houston opined on the limited powers of a Subchapter V trustee.
Sub V Plan Doesn’t Require Automatic Increases Based on Actual Disposable Income
Bankruptcy Judge Christopher Bradley disagreed with a district court in Florida that required a ‘true up’ if actual disposable income in Sub V exceeds projected disposable income.