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ABI Journal

August 24, 2023

State Court Is the ‘More Appropriate Forum’ to Divide Marital Property

The bankruptcy court can divide marital property, but just because it can doesn’t mean it should, Judge Thuma says.

10th Circuit, New Mexico

August 23, 2023

Fourth Circuit: State Law Claims for Discharge Violations Are Not Preempted

The Fourth Circuit declined to follow the First and Sixth Circuits on preemption of automatic stay violations by expanding the ban to redress for discharge violations.

4th Circuit

August 22, 2023

Three Circuits Agree: The ACA’s ‘Penalty’ Is Actually a Tax Entitled to Priority

Looking beyond the label assigned by the Affordable Care Act, three circuits have now held that failure to pay the ‘individual mandate’ for purchasing health insurance gave rise to a tax entitled to priority in bankruptcy.

6th Circuit

August 21, 2023

Government Bar Date Applies to DOE Loans Even When the Servicer Is Private

As long as the student loan is owing to the government, the Fifth Circuit holds that the government bar date applies even when the servicer is a private company.

5th Circuit

August 14, 2023

Assets Purchased with Exempt Social Security Benefits Are Not Themselves Exempt

Two judges in Georgia say that personal property is not exempt even if the purchase was traceable to Social Security benefits.

11th Circuit, Georgia, Georgia Southern District

August 08, 2023

Second Circuit Nixes Nationwide Class Actions for Discharge Violations

The Second Circuit split with the First Circuit, which had permitted nationwide class actions because the discharge injunction is statutory.

2nd Circuit

August 02, 2023

Circuits Are Now Split on Who Gets Appreciation in a Home When a ‘13’ Converts to ‘7’

Splitting with the Tenth Circuit, the Ninth Circuit holds that chapter 13 debtors lose post-petition appreciation in a home if the case converts to chapter 7.

9th Circuit

July 26, 2023

Recoveries on Postpetition Tort Recoveries Do (Do Not) Belong to Creditors in ‘13’

Rather than invoking the best interests and disposable income tests for plan confirmation, the Eleventh Circuit may have departed from the statute by ruling that the ‘ability to pay’ gives postpetition tort claims to creditors in chapter 13.

11th Circuit, Alabama, Alabama Southern District

July 21, 2023

Ninth Circuit Won’t Give Pro Se Litigants Slack About Consent to Final Adjudication

Wellness International may have undercut prior Second Circuit authority giving pro se litigants a loophole for arguing there was no implied consent to final adjudication by an Article I judge.

9th Circuit

July 20, 2023

Debt for Selling a Gun Used in a Mass Killing Was Dischargeable

Congress might want to consider closing a dischargeability loophole when it comes to injuries indirectly resulting from commission of a felony.

5th Circuit, Texas, Texas Northern District