In ‘13,’ a Motion to Dismiss Must Precede Entry of a Conversion Motion, Circuit Says
The Sixth Circuit majority and dissent have an intriguing debate over appellate jurisdiction.
If Personal Liability on a Mortgage Was Discharged, Is Confirmation Possible in ‘13’?
When there was a prior discharge of personal liability on a mortgage note, what’s the theory for confirming a plan in a subsequent chapter 13 case?
Two BAPs Now Uphold Sanctions Alongside Voluntary Dismissals Under Section 1307(b)
The Tenth Circuit BAP holds that dismissal is not automatic and immediate when a chapter 13 debtor moves to dismiss voluntarily under Section 1307(b).
Bifurcated Fee Arrangements Nixed on Appeal in Chicago
Parroting a local rule made the retention agreement more confusing, not less.
Creditor With a Derivative Claim Has Standing to Sue, Fifth Circuit Says
Embezzlement from an LLC conferred standing to sue on an owner, not only on the LLC.
$12 Million in Gambling Losses Made Taxes Nondischargeable for Five Years
Circuits are split on whether nonpayment of taxes alone establishes the ‘conduct’ requirement making taxes nondischargeable for having evaded payment of taxes.
Legislative Highlights February 2026
Congress Passes “Bankruptcy Administration Improvement Act” The House of Representatives passed (voice vote) S. 3424, the “Bankruptcy Administration Improvement Act of 2025,” 1 to double the compensation payable to chapter 7 trustees in no-asset cases, extend the sunset
Congress Needs to Fix the Mess Created by the Supreme Court in Lamie
Unlike debtors in chapter 13, chapter 7 debtors cannot pay counsel with estate property. There may be no workaround allowing chapter 7 debtors to pay counsel before filing for services to be performed after filing.
Collecting a Sanction May Be Enforced by Contempt Rather than Writ of Execution
A district court in New York affirmed Bankruptcy Judge Paek by holding that collection of a sanction for a stay violation doesn’t require a writ of execution under Federal Rule 69(a).
No Loopholes in Section 362(b)(21) Allowing Foreclosure Against an Ineligible Debtor
Even if a debtor is ineligible to file again under Section 109(g), another filing does create a stay, but it’s not applicable to enforcement of a lien against real property.