Texas

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.

Barton Doctrine Protected a Receiver from an Automatic Stay Violation

The district court properly reversed and dismissed for lack of subject matter jurisdiction under Barton.

Creditor Hit with $826,000 in Sanctions for Filing a Meritless Proof of Claim

Refusing to withdraw a meritless claim with prejudice contributed to the decision by Judge Jernigan to impose high-six-figure sanctions.

Reference Withdrawal on Houston Ethics Probe Pits UST Against Bankruptcy Judge

Despite consent by the firm to withdraw the reference of motions to disgorge its fees, a bankruptcy judge in Houston recommended against withdrawal to district court and against transfer to another district.

Lender’s Attorneys Paid Twice the Debtor’s Counsel Fees

Unnecessarily holding the lender’s feet to the fire resulted in the allowance of attorneys’ fees to the lender that were twice the debtor’s counsel fees.

Bankruptcy Code Overrides Contrary Delaware Corporate Law, Judge Lopez Says

Whether a creditor violated the automatic stay is not arbitrable in bankruptcy.

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.

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