Recently in Bankruptcy Law Category

In an appeal from the district court's affirmance of the bankruptcy court's order disqualifying counsel for a creditor, the order is reversed where: 1) the bankruptcy court should have considered counsel's evidence of his lack of involvement with the debtor while at his prior law firm in making its decision; and 2) counsel presented sufficient evidence to demonstrate that he did not operate under a conflict of interest when he undertook the representation of creditor.

Read In the Matter of: Proeducation Int'l. Inc., No. 08-20398

Appellate Information

Filed October 30, 2009

Judges

Opinion by Judge King

In a challenge to a confirmed Chapter 11 reorganization plan, the confirmation of the plan is affirmed in part where: 1) certain noteholders did not preserve their challenge to the plan's treatment of their secured claims; and 2) the plan did not create a substantive consolidation.  However, the order is reversed in part where: 1) the equitable mootness doctrine did not bar review of issues raised on appeal concerning the treatment of noteholders' secured claims, it did not bar re-evaluation of whether their administrative priority claim was correctly calculated, and it did not bar review of the plan's release clauses insulating multiple parties from liability; and 2) the bankruptcy court may have made a mathematical error and deprived noteholders of a post-petition administrative priority claim.

Read In the Matter of: Pac. Lumber Co., No. 08-40746

Appellate Information

Filed September 29, 2009

Judges

Opinion by Judge Jones

In a debtor's appeal from a bankruptcy court's order denying confirmation of her Chapter 13 plan, the order is affirmed where an above-median Chapter 13 debtor's "projected disposable income" presumptively consists of his statutorily defined "disposable income" mechanically projected into the future for the duration of the plan.

Read Nowlin v. Peake, No. 08-20066

Appellate Information

Filed July 17, 2009

Judges

Opinion by Judge Elrod

District court's dismissal of creditors' appeal of a bankruptcy court's approval of a settlement order is reversed where the district court improperly applied the doctrine of equitable mootness because the relief requested would not affect the success of the plan or the rights of parties not before the court.

Read Tech. Lending Ptnrs. LLC v. San Patricio Cty. Cmty. Action Agency, No. 08-40517

Appellate Information

Filed July 14, 2009

Judges

Opinion by Judge Southwick

The dismissal of Debtors' bankruptcy petition for abuse is reversed, where Debtors should have been allowed to deduct a transportation ownership deduction under the plain language of 11 U.S.C. section 707(b), even though they had no loan or lease payment on their vehicle.

Read Tate v. Bolen, No. 08-60953

Appellate Information

Filed June 30, 2009

Judges

Opinion by Judge Davis

ku7tmpgnab