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ABI Journal

Rochellel's Daily Wire

October 16, 2018

Debtor Allowed to Convert from Chapter 12 to Chapter 11

Where the courts are split for lack of specific statutory authority, Judge Robert Jones finds discretion to allow conversion from chapter 12 to chapter 11.

5th Circuit, Texas, Texas Northern District

October 15, 2018

Chapter 13 Can Cure a Home Mortgage Default Even After a Foreclosure Auction

Section 1322(c) allows a debtor to cure a mortgage default so long as the foreclosure deed was not recorded before bankruptcy.

1st Circuit, New Hampshire

October 12, 2018

Educational Loans from a Private Lender Are Held Dischargeable

Courts are split on whether all educational loans are nondischargeable as an educational benefit.

10th Circuit, Colorado

October 11, 2018

Functionally Illiterate, Disabled Debtor Succeeds in Discharging Student Loans

Why must the system require a trial to discharge student loans by a debtor in hopeless circumstances?

6th Circuit, Ohio, Ohio Northern District

October 10, 2018

Retention of Voluntary Post-Petition Payment Doesn’t Violate the Automatic Stay

A creditor was allowed to keep a voluntary, post-petition payment on a pre-petition debt that the debtor made with non-estate property.

11th Circuit, Georgia, Georgia Southern District

October 09, 2018

District Judge Rules Section 562 Does Not Apply to Terminations by Agreement

Section 562 applies to fix the date for calculating damages only if the debtor rejects or the creditor terminates, New York district judge says.

2nd Circuit, New York, New York Southern District

October 08, 2018

Liquidators Conducting GOB Sales Are Not ‘Professionals’ Covered by Section 327

U.S. Trustee rebuffed in subjecting liquidators to retention as ‘professionals’ under Section 327.

3rd Circuit, Delaware

October 05, 2018

Wisconsin Judge Slashes Quarterly Fees to the U.S. Trustee Program

Judge Furay interprets ‘disbursements’ not to include the daily sweep of a collection account in a revolving credit.

7th Circuit, Wisconsin, Wisconsin Western District

October 04, 2018

Judge Develops a Creative Remedy to Deal with Nondischargeable Student Loans

Remedies available to a bankruptcy judge are limited when granting a partial discharge of student loans.

10th Circuit, Kansas

October 03, 2018

BAP Narrowly Reads Section 506(d) on Voiding Liens Following Claim Disallowance

A claim must be disallowed on the validity of the debt before the associated lien can be voided under Section 506(d), the Ninth Circuit BAP holds.

9th Circuit