Claims

This session will highlight particularly interesting case law developments to date in 2017 and their impact on bankruptcy law and practice.

This panel will examine the strategies for dealing with unknown claims in chapter 11, the limits that due process places on those strategies, and the impact that the Second Circuit’s recent decision in In re Motors Liquidation may have on those strategies going forward.

Equal Monthly Payments; Consequences of Surrender and Pay Direct; Rule 3001(c) issues; Fee-Shifting under Rule 3002.1; Circuit Splits on Service of Objections to Claims and Bar Dates for Secured Creditors; Unscheduled Claims

This must-attend annual favorite will cover all recent current bankruptcy law decisions and consumer bankruptcy law issues.

Mortgage escrow accounts remain a mystery in many cases as debtors’ and creditors’ attorneys both struggle to understand the calculations set forth in them and the effect they have on chapter 13 cases. This panel will focus on escrow accounts, as well as new proof-of-claim forms and how they treat escrow accounts.

Consumer Debate Resolved: An out-of-statute proof of claim violates the FDCPA. Business Debate Resolved: Assets can be sold free and clear of liens in state court receiverships. Judges Debate Resolved: Third-party releases should not be allowed in chapter 11 plans.

A seldom-used, and even lesser-understood, provision of the Bankruptcy Code, the 1111(b) election can provide substantial leverage to a secured creditor in a bankruptcy case. This session will detail what the election is and why — as either a creditors’ or debtors’ attorney — you should understand the ramifications it can have on your case.

John W. Lucas, Moderator Pachulski Stang Ziehl & Jones LLP; San Francisco Judicial Debate Resolved: Structured dismissals of chapter 11 cases must always follow the Bankruptcy Code's priority structure. Pro: Hon. August B. Landis U.S. Bankruptcy Court (D. Nev.); Las Vegas Con: Hon. Deborah L. Thorne U.S. Bankruptcy Court (N.D. Ill.); Chicago Business Debate Resolved, a company deriving income indirectly from marijuana sales that are legal under state law should be eligible for relief under the Bankruptcy Code. Pro: Daniel J. Garfield McAllister Law Office P.C.; Denver Con: Candace C. Carlyon Morris Polich & Purdy LLP; Henderson, Nev. Consumer Debate Resolved: The filing of a Proof of Claim, for a debt on which the statute of limitations has run, is a violation of the FDCPA. Pro: Stephen E. Berken Berken and Associates; Denver Con: Alane A. Becket Becket & Lee, LLP; Malvern, Pa.

In the first decision addressing the point, the Ninth Circuit held that there’s a difference between an insider and a claim held by an insider. The ruling blessed an insider’s sale of a claim, relieving the claim of any taint and allowing the new holder to vote on confirmation. The panel looks at the developing issues on whether the buyer is a nonstatutory insider and whether the plan can be pursued in good faith after such a sale.