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New Cases For the Week of March 31,
2003 - April 4, 2003
Brought to you by BKINFORMATION.COM
- The Source for Business Bankruptcy Information on the Internet
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April
2, 2003
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Case
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Court
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Holding
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In
re Crawford
(DBN Subscription Required) |
7th
Cir. |
The
bankruptcy court did not err in denying
confirmation of a Chapter 13 plan that
unfairly discriminated by proposing to
separately classifying nondischargeable
child support arrearages and to shift the
burden of paying 2/3rds of such arrearages
to the debtor's general unsecured
creditors.
However, had the debtor been able to
show that without separate classification
he would have emerged from Chapter 13
bankruptcy with staggering undischarged
debt leading to a Chapter 7, a plan
separately classifying nondischargeable
debt could represent "fair
discrimination." |
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April
1, 2003
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Case
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Court
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Holding
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In
re PPI Enterprises
(DBN Subscription Required) |
3rd
Cir. |
Where
§ 502(b)(6) alters a creditor's
non-bankruptcy claim, there is no
alteration of the claimant's legal,
equitable, and contractual rights for the
purposes of "impairment" under
§ 1124(1).
A security deposit held
by a lessor on a rejected lease must be
applied against the maximum claim for
lease termination damages allowed to the
lessor under § 502(b)(6).
Structuring a security deposit as a letter
of credit does not defeat this rule.
The bankruptcy court did
not err in finding that the filing of the
bankruptcy to utilize section 502(b)(6)
was not bad faith. |
Archer
v. Warner
(DBN Subscription Required) |
Sup.
Crt. |
A
debt for money promised in a settlement
agreement accompanied by the release of
underlying tort claims can amount to a
debt for money obtained by fraud, within
the nondischargeability statute's terms. |
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