January 26, 2024

Agreements in Settlement of Nondischargeable Debts Are Themselves Nondischargeable

Fourth Circuit holds that attorneys’ fees and interest in pursuit of nondischargeable debts are themselves nondischargeable.

4th Circuit

January 23, 2024

Courts Are Split on Including a Nonfiling Spouse’s Social Security Benefits

Judge Beth Buchanan decided that the ‘totality of the circumstances’ test for ‘abuse’ doesn’t permit disregarding the exemption for Social Security benefits.

6th Circuit, Ohio, Ohio Southern District

January 22, 2024

An Unmarried ‘Partner’ Might Not Have a Homestead Exemption, Ninth Circuit Says

A California exemption law protecting victims of spousal abuse doesn’t apply to those who aren’t married.

9th Circuit

January 19, 2024

Alabama Judge Gives a Mixed Message on Who Gets Postpetition P.I. Settlements

District court rules that proceeds from a postpetition personal injury claim are ‘additional disposable income’ that ordinarily goes to creditors in a chapter 13 plan.

11th Circuit, Alabama, Alabama Southern District

January 18, 2024

Debt Purchaser Socked $65,000 for a Discharge Violation

Taggart doesn’t give more protection to a purchaser of debt than it does to the original creditor, Judge Scott Grossman says.

11th Circuit, Florida, Florida Southern District

January 05, 2024

U.S. Trustee Dodged Payment of Attorneys’ Fees Under the Equal Access to Justice Act

The Sixth Circuit holds that a debtor cannot recover attorneys’ fees from the U.S. Trustee under the EAJA in a contested matter, but leaves open the possibility of liability for counsel fees in a losing adversary proceeding.

6th Circuit

December 28, 2023

When Inherited Property Becomes Property of the Debtor’s Bankruptcy Estate

Being an heir by itself doesn’t bring a decedent’s estate into the heir’s bankruptcy estate.

7th Circuit, Wisconsin, Wisconsin Eastern District

December 19, 2023

IRS Standard Deduction for Housing Can Be Taken Without Mortgage or Rent Expense

Official Form 122C-2 could be read to deprive a chapter 13 debtor of the IRS standard housing deduction when the statute permits the deduction.

10th Circuit, New Mexico

December 12, 2023

Dismissing a Divorce Action Didn’t Result in an Unauthorized, Post-Petition Transfer

An inchoate interest in property created by filing a divorce action doesn’t survive dismissal of the divorce action, the Tenth Circuit BAP says.

10th Circuit

December 07, 2023

Debtor May Amend a ‘13’ Plan to Modify the Treatment of a Secured Creditor’s Claim

Chicago Bankruptcy Judge David Cleary followed a decision by then-district Judge David Hamilton and “respectfully” disagreed with decisions by two predecessors on the same bankruptcy bench.

7th Circuit, Illinois, Illinois Northern District