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Supreme Court holds that denial of plan confirmation is not appealable as a matter of right

On May 4, 2015, the Supreme Court of the United States issued an opinion regarding a Chapter 13 bankruptcy case from the United States Court of Appeals for the First Circuit (the “First Circuit”).1 The question on appeal was whether debtor Louis Bullard (“Bullard”) could immediately appeal the bankruptcy court’s order denying confirmation of his proposed Chapter 13 payment plan (the “Plan”).2 The Court held that denial of confirmation of a debtor’s plan is not a final, appealable order.3  

Case Background

USA, Insolvency & Restructuring, Litigation, Hunton Andrews Kurth LLP, Supreme Court of the United States, United States bankruptcy court, First Circuit
Fifth Circuit protects secured creditor and holds that receipt of notice is not participation required to extinguish lien through plan confirmation

It should be common knowledge that a secured creditor, having received proper notice in a Chapter 11 bankruptcy case, faces the risk that its lien will be extinguished if it fails to object to a reorganization plan that does not specifically preserve the lien. Apparently, however, not all secured lenders realize this risk, and some fall prey to a trap for the unwary in §1141(c) of the Bankruptcy Code by failing to protect their liens and place their collateral at risk.

USA, Insolvency & Restructuring, Litigation, Hunton Andrews Kurth LLP, Bankruptcy, Debtor, Secured creditor, United States bankruptcy court, Fifth Circuit, Seventh Circuit