7th Circuit Opinion Summaries courtesy of Justia.com
United States v. Rogan
Bankruptcy, Criminal Law, Government, White Collar Crime
River Road Hotel Partners, LLC v. Amalgamated Bank
Bloomfield State Bank v. United States
Bankruptcy, Real Estate & Property Law, Tax Law
Costello v. Grundon
Bankruptcy, Commercial Law, Securities Law
CDX Liquidating Trust v. Venrock Assocs., et al
Bankruptcy, Business Law, Securities Law
Reedsburg Util. Comm’n v. Grede Foundries, Inc.
Bankruptcy, Utilities Law
Kimbrell v. Brown
Bankruptcy, Injury Law
Posted in 101, 109(h), 11 U.S.C. § 707(b)(3), 11 U.S.C. section 365(a), 1112(b), 1307, 1308, 1322(b)(11), 1325(a)(5), 1325(a)(9), 1325(b), 1326(a)(1)(C), 1328, 15 USC 1692k(c), 2002, 28 U.S.C. 1927, 3017(d), 342, 362(c)(3)(A), 362(c)(3)(B), 362(c)(4)(A)(i), 363, 451, 126.96.36.199, 502(b)(6), 510, 521, 522, 523, 526(a), 527(a)(2), 528(a), 528(a)(4), 528(b)(2)(B), 547(b), 550, 550(a), 707, 727, 9019, 9023, 9037, adequate protection, adversary, amendment, appellate court, assets, attorneys, audit, automatic stay, automobile, avoidance, bad faith, bank, bankruptcy, Bankruptcy Rules, BAPCPA, blogging, blogs, bubble, business, business filings, call, case update, cash collateral, ch 13, ch 7, cir 7, consumer, current-events, IL, individual, ND, small business
Tagged Bankruptcy, Commercial Law, Criminal Law, law, Lawyers and Law Firms, Services, United States, United States bankruptcy court
Ransom v. FIA Card Services, N.A., f/k/a MBNA America Bank, N.A.
Certiorari from the U.S. Court of Appeals for the 9th Cir., Case 09–907
Argued October 4, 2010—Decided January 11, 2011
The Issue: Here the question was whether a Chapter 13 debtor could deduct the allowable auto payment from his monthly budget even though he did not have a car payment (i.e the vehicle was paid for). Put another way, is it fair for all debtors to be entitled to the maximum allowable deduction from their monthly disposable income, or must debtors establish what they actually pay?
The Answer: The Court ruled 8 to 1 (Scalia J. dissenting) that if a debtor makes more than the median income for his State then he must establish that he incurrs the amounts deducted from his monthly living expenses. No more automatic deductions if debtor cannot prove what he pays.
The Gist: To determine “disposable income” BAPCPA gave us the Means Test, which starts with gross monthly income then deducts living expenses – i.e. “amounts reasonably necessary for maintenance or support” of the debtor. In a Chapter 13 case the expenses considered “reasonably necessary” are identified in 11 U.S.C. §1325(b)(2)(A)(i) and include “applicable monthly expense amounts” as specified in National and Local IRS standards. Since BAPCPA was adopted, it has become common practice to include expenses at the maximum allowable level even if the debtor does not have, or pay for, that type of asset. This case appears to say that the party is over for Chapter 13 debtors.
See Also: this post from Chicago Attorney Steve Jacobowski on the Bankruptcy Litigation Blog regarding the Scalia dissent.
Posted in 101, 109(h), 11 U.S.C. § 707(b)(3), 11 U.S.C. section 365(a), 1112(b), 1307, 1308, 1322(b)(11), 1325(a)(5), 1325(a)(9), 1326(a)(1)(C), 1328, 15 USC 1692k(c), 28 U.S.C. 1927, 362(c)(3)(A), 362(c)(3)(B), 362(c)(4)(A)(i), 363, 451, 502(b)(6), 510, 521, 522, 523, 526(a), 527(a)(2), 528(a), 528(a)(4), 528(b)(2)(B), 547(b), 550, 550(a), 707, 727, 9019, 9023, 9037, adequate protection, administrative, Administrative Office of the Courts, amendment, appellate court, Bankruptcy Rules, BAPCPA, ch 13, cir 9, confirmed plan, Congress, consumer, conversion, cramdown, credit, credit card, credit cards, credit counseling, creditor, current affairs, current-events, data, debt, docket, economics, economy, Executive Office of the UST, fair credit reporting act, FDCPA, Fed. R. Bankr. Proc., Fed. R. Civ. P., individual, interest, legislation, means test, median income, memorandum opinion, Middle class, modification, opinion, research
Tagged BAPCPA, disposable income, IRS, J, Kagan, means test, Scalia, SCotUS
To use PACER/RACER you must now agree to be bound by the following redaction policy (Rule 9037. Privacy Protection for Filings Made with the Court)
Rule 9037. Privacy Protection for Filings Made with the Court
a) REDACTED FILINGS. Unless the court orders otherwise, in an electronic or paper filing made with the court that contains an individual’s social-security number, taxpayer-identification number, or birth date, the name of an individual, other than the debtor, known to be and identified as a minor, or a financial-account number, a party or nonparty making the filing may include only:
(1) the last four digits of the social-security number and taxpayer-identification number;
(2) the year of the individual’s birth;
(3) the minor’s initials; and
(4) the last four digits of the financial-account number.
b) EXEMPTIONS FROM THE REDACTION REQUIREMENT. The redaction requirement does not apply to the following:
(1) a financial-account number that identifies the property allegedly subject to forfeiture in a forfeiture proceeding;
(2) the record of an administrative or agency proceeding unless filed with a proof of claim;
(3) the official record of a state-court proceeding;
(4) the record of a court or tribunal, if that record was not subject to the redaction requirement when originally filed;
(5) a filing covered by subdivision (c) of this rule; and
(6) a filing that is subject to § 110 of the Code.
c) FILINGS MADE UNDER SEAL. The court may order that a filing be made under seal without redaction. The court may later unseal the filing or order the entity that made the filing to file a redacted version for the public record.
d) PROTECTIVE ORDERS. For cause, the court may by order in a case under the Code:
(1) require redaction of additional information; or
(2) limit or prohibit a nonparty’s remote electronic access to a document filed with the court.
e) OPTION FOR ADDITIONAL UNREDACTED FILING UNDER SEAL. An entity making a redacted filing may also file an unredacted copy under seal. The court must retain the unredacted copy as part of the record.
f) OPTION FOR FILING A REFERENCE LIST. A filing that contains redacted information may be filed together with a reference list that identifies each item of redacted information and specifies an appropriate identifier that uniquely corresponds to each item listed. The list must be filed under seal and may be amended as of right. Any reference in the case to a listed identifier will be construed to refer to the corresponding item of information.
g) WAIVER OF PROTECTION OF IDENTIFIERS. An entity waives the protection of subdivision (a) as to the entity’s own information by filing it without redaction and not under seal.
Posted in 9037, bankruptcy, ch 11, ch 13, ch 7, cir 7, consumer, current affairs, current-events, data, Fed. R. Bankr. Proc., filings, IL, individual, legislation, ND, notice, opinion, research, right to privacy