On Its Way to the Supreme Court: Sixth Circuit BAP Rules MI Exemptions Unconstitutional
by: Brett Border
Schneiderman and Sherman PC; Farmington Hills, Mich.
The Sixth Circuit Bankruptcy Appellate Panel (BAP) recently ruled in the consolidated appeals of In re Schafer and In re Jones [1] that Michigan’s bankruptcy-exemption statute was unconstitutional, setting off what is likely to become a contested issue within Michigan and other states, and eventually a petition for certiorari to the Supreme Court. In Shafer/Jones, both debtors claimed an exemption in the equity of their residences under Mich. Comp. Laws § 600.5451(1)(n). The chapter 7 trustee filed objections to the exemptions and challenges to the constitutionality of the exemption statute, and the attorney general did not file a response nor appear. The bankruptcy court consolidated the hearings and ruled that the statute did not violate the Supremacy Clause of the U.S. Constitution.
New Ransom Decision Opens or Closes Doors?
by: Robert C. Meyer
Robert C. Meyer PA; Miami
The manipulation of the current monthly income (CMI) schedule [Bankruptcy Form B22] by bankruptcy practitioners has been subject of many bankruptcy court opinions and, such concern culminated with a 2011 opinion by the U.S. Supreme Court—Ransom v. FIA Card Services NA [1]. One of the better expenses to include would be the car expenses of one or two or more vehicles, even when a debtor may own the vehicle free and clear of all liens. The majority of circuits ruled in favor of allowing a debtor to include such motor vehicle expenses, while the creditors persisted in arguing that the same was in violation of the language of the Bankruptcy Code and legislative intent of the Bankruptcy Abuse Prevention and Consumer Protection Actof 2005(BAPCPA). Those issues were reviewed by the Supreme Court in Ransom, which has now made the creditors’ view the law of all jurisdictions; but, with this decision some very important questions remain unanswered.
13th Annual New York City Bankruptcy Conference
On behalf of our distinguished faculty and Advisory Board, we are pleased to invite you to attend the 2011 New York City Bankruptcy Conference to be held Friday, May 6, at the Hilton New York. This day-long educational forum is designed to appeal to experienced professionals. The newly expanded workshop format – each of the 6 concurrent breakout sessions is presented twice, each time with different panelists offering two exclusive points of view of the same topic – allows for spirited exchange between panelist and attendee. The flexible repeating format allows you to customize your personal learning experience. Sample up to 4 concurrent sessions, or dig deeper into two concentrated subjects.
Additionally, the primer course, "Bankruptcy Fundamentals: Nuts & Bolts for Young and New Practitioners," will be held on Thursday, May 5. Updated to include recent case law, an outstanding faculty of judges, academics and attorneys will explain the fundamentals of bankruptcy. Ramp up your young associates or expand the quiver of your new litigators with this one-day inclusive program.
All New York City Bankruptcy Conference attendees will receive a complimentary copy of Bankruptcy Business Acquisitions, Second Edition.
Click here for CLE/CPE information. Click here to register.