Harris v. Viegelahn

Debtor Who Converts to Chapter 7 Is Entitled to Return of Funds Not yet Distributed By Chapter 13 Trustee

 By Michael L. Moskowitz and Melissa A. Guseynov

On May 18, 2015, in Harris v. Viegelahn, the United States Supreme Court unanimously held that undistributed plan payments made by a debtor from his or her wages, and held by a Chapter 13 trustee at the time of the case’s conversion to Chapter 7, must be returned to the debtor. Harris v. Viegelahn, 135 S.Ct. 1829 (2015). The decision resolves a Circuit split, as well as an issue that has divided bankruptcy courts for decades.

Wellness International Network Ltd. v. Sharif

Bankruptcy Judges May Render Final Decisions on Legal Disputes Arising in Bankruptcy if All Parties Consent

By Michael L. Moskowitz and Melissa A. Guseynov

On May 26, 2015, in Wellness International Network Ltd. v. Sharif, the Supreme Court held that Article III of the United States Constitution permits bankruptcy judges to adjudicate so called “Stern” claims, with the parties’ knowing and voluntary consent. Wellness International Network Ltd. v. Sharif, 135 S.Ct. 1932 (2015).   

Bullard v. Blue Hills Bank 

Orders Denying Bankruptcy Plan Confirmation
are Not Final Orders for Purposes of Appeal

 By Richard E. Weltman and Melissa A. Guseynov

This term, in Bullard v. Blue Hills Bank, the United States Supreme Court unanimously decided that orders denying plan confirmation do not constitute final orders from which an appeal may be immediately taken as a matter of right.  The decision resolves a significant circuit split and may shift the balance of power in bankruptcy cases against debtors seeking to confirm plans and emerge from the bankruptcy process on their own terms.