DAVID KRUER & COMPANY, LLC Attorneys and Counselors at Law In Greater Cincinnati CALL (513) 772-7213 Covington, KY: (859) 291-7213 Portsmouth, OH: (740) 354-4483
 DAVID KRUER & COMPANY, LLC Attorneys and Counselors at Law                                                                                                                                                                                                                                                                                                                                                             In Greater Cincinnati                                                                                                                                                          CALL (513) 772-7213                                                                                                                                 Covington, KY: (859) 291-7213                                                                                                                              Portsmouth, OH: (740) 354-4483 


US Supreme Court issues ruling in Harris v. Viegelahn 

On May 18, 2015 the Supreme Court issued a ruling faced with the question of; what happens to money paid by Debtors in their chapter 13 to the chapter 13 trustee once they convert their case to a chapter 7?


The Court ruled that any post-petition payments paid to the chapter 13 trustee post-conversion must be returned to the Debtors. The Court stated that Debtors have an absolute right to convert their case to chapter 7 and that as of the moment of the conversion, the chapter 13 trustee no longer has any authority to distribute the Debtors' money. 


As a result a number of chapter 13 trustees have implemented new rules requiring Debtors' counsel to notify the chapter 13 trustee immediately upon converting a case to chapter 7. Trustees are stating that; should Debtors' counsel fail to notify the chapter 13 trustee of a conversion prior to the chapter 13 disbursing the Debtors' money to creditors, it will be incumbent upon Debtors' counsel to recoup the money disbursed to creditor post-petition and post-conversion.



Sixth Circuit issues ruling (In re Underhill - 13-4195)

On September 10, 2014 the Sixth Circuit issued a ruling clarifying what law suits may or may not become property of a bankruptcy estate. In this case the Debtors operated a business when they filed a chapter 7. Subsequent to filing the case the Debtors, as representatives of the business sued another company for tortious interference with a contract. The Debtors recovered a substantial amount of money in this law suit. A creditor of the Debtors' business sought to have the settlement funds turned over to the Chapter 7 Trustee for disbursement to the Debtors' creditors. The Sixth Circuit ruled that since the Debtors' cause of action arose after the chapter 7 was filed that the proceeds from the law suit were not property of the bankruptcy estate and thus not available for distribution to creditors by the chapter 7 trustee.


Sixth Circuit issues ruling (In Re Baud)

During March, 2011, the Sixth Circuit issued a ruling in the Baud case that requires all chapter 13 cases with above median income debtors to have a projected length of 60 months. The Court further reaffirmed that below median income debtors need only be in a case for a minimum of 36 months but may take up to 60 months to pay back certain debts. 


Sixth Circuit issues ruling (In re Shaw)

The bankruptcy amendments of 2005 (BACPA) created a class of secured claims concerning automobiles (910 claims) that the Sixth Circuit ruled were not modifiable under 1322(b)(2) even though the plain language of 1325(a) seems to indicate the bankruptcy judge has discretion to do so.  The Ninth Circuit subsequently reviewed the same issue and ruled the bankruptcy judge does have the discretion to permit modification of such automobile claims.


Ohio Exemption Statute Changes

As of Mach 27, 2013 the Ohio legislature amended the exemptions applicable to bankruptcy law. A link to the exemptions is below. Most notably, the homestead exemption is now $132,000. This means that Debtors who own their homes free and clear or have substantial equity in their primary residence are now able to protect that equity from creditors and/or trustees. 




Keep Up to Date

Check back regularly to stay informed of landmark decisions and relevant proceedings, as well as news from our legal offices. 

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Covington, Kentucky Office

David Kruer & Company, LLC

118 West Fifth Street, Suite E.

Covington, KY 41011


Phone (859) 291-7213

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David Kruer & Company, LLC

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Portsmouth, Ohio 45662


Phone (740) 354-4483

Fax 740-354-7780


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