The US Supreme Court Rulings
In 2017 the Supreme Court decided Czyzewski v. Jevic Holding Corporation. The Supreme Court held that when a bankruptcy court orders a Chapter 11 case dismissed, it can’t also order the distribution of the debtor’s assets in a way that contradicts the order of payment in a bankruptcy liquidation. This was a creative way to avoid the “absolute priority rule,” which has caused problems for many individual Chapter 11s.
The Supreme Court issued some other significant rulings in 2017.
Lamar, Archer & Cofrin, LLP v. Appling, decided October, 2017
The Supreme Court resolved a split of circuits by holding that a false statement about one asset must be in writing to provide grounds for rendering a debt nondischargeable under Section 523(a)(2). This ruling should limit many challenges by creditors to deny debtors’ a discharge.
Midland Funding, LLC v. Johnson, decided May 15, 2017
Holding: The filing of a proof of claim that is obviously time barred is not a false, deceptive, misleading, unfair or unconscionable debt-collection practice within the meaning of the Fair Debt Collection Practices Act.
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