Recent SCOTUS Bankruptcy Court Rulings
The Court issued 2 of 3 Opinions related to the bankruptcy issues the Court accepted in the 2014 Term. First, the Court ruled that a Bankruptcy Court’s denial of Plan Confirmation is not a final appealable order as there are other legal alternatives that a Debtor has available precluding a final adjudication. Second, in a separate case, the Court ruled in favor of a debtor/consumer who converts from a Chapter 13 reorganization plan to a Chapter 7 liquidation to the extent that any post-filing wages in the Chapter 13 Trustee’s possession at the time of the conversion is the property of the debtor/consumer and not the Chapter 7 bankruptcy estate. Therefore, the wages cannot be used for the benefit of creditors upon conversion. The respective cases are Bullard v. Blue Hills Bank and Harris v. Viegelahn.
We are still awaiting the major lien stripping decision in In Re: Caulkett-Toledo and will keep you posted.