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ABI Journal

April 22, 2023

Clark v. Rameker Didn’t Say that All Inherited IRAs Aren’t Exempt

In Section 522(b)(3), Congress made sure that ‘retirement funds’ are exempt in bankruptcy even if they aren’t exempt in states that don’t permit federal exemptions.

8th Circuit, Iowa, Iowa Northern District

April 19, 2023

A Statement ‘For Informational Purposes’ Can Still Be a Stay Violation, BAP Says

A BAP strictly enforced the stay against a mortgage servicer who improperly listed a pre-petition debt in the portion of the monthly statement showing the next post-petition payment.

9th Circuit

April 18, 2023

Notification of Bankruptcy Requires Lifting Garnishment of Post-Petition Income

Although the automatic stay does not require turning over property garnished before bankruptcy, a creditor may not continue garnishing property after filing, Judge Burgess says.

11th Circuit, Florida, Florida Middle District

April 13, 2023

Judge Isgur Allows 401(k) Contributions in Chapter 13 Up to What the IRS Code Allows

Contributions to 401(k) plans are deducted from ‘projected disposable income,’ even though the debtor was not making contributions before filing

5th Circuit, Texas, Texas Southern District

April 12, 2023

Core vs. Non-Core Doesn’t Determine Whether Arbitration Will Be Enforced

Chicago’s Judge Cleary didn’t compel arbitration of an affirmative counterclaim by the debtor against the creditor that would be determined in the course of passing on the allowance of the creditor’s proof of claim.

7th Circuit, Illinois, Illinois Northern District

April 11, 2023

Judge Klein Charts the Path for Discharging Student Loans and Not Being Reversed

Bankruptcy Judge Christopher Klein provides authority for student loan debtors who win in bankruptcy court but face an appeal aimed at the trial court’s fact-findings.

9th Circuit, California, California Eastern District

April 03, 2023

‘Person Aggrieved’ for Appellate Standing Test May Have Died, but May Be Resurrected

Sixth Circuit judges wrote 17 pages of dicta to muse on whether the ‘person aggrieved’ test for appellate standing died with the adoption of the Bankruptcy Code but remains good law under the ‘zone-of-interests’ test.

6th Circuit

March 30, 2023

Proceeds from Post-Petition Sales Aren’t to Be Turned Over to the Chapter 13 Trustee

Before confirmation, district judge says that a chapter 13 debtor is only required to turn over disposable income to a trustee, not proceeds from a post-petition sale of property.

2nd Circuit, New York, New York Southern District

March 28, 2023

Ninth Circuit BAP Rules on a Question to Be Decided Soon by the Supreme Court

Like the question in MOAC to be decided soon by the Supreme Court, the BAP says that the qualifications for an involuntary petitioner are not jurisdictional and can be waived.

9th Circuit

March 27, 2023

A Lawsuit to Collect a ‘DSO’ Runs the Risk of Violating the Automatic Stay

Although collecting a ‘DSO’ from non-estate property is permitted by Section 362(b)(2)(B), a district judge says that an in personam suit against the debtor can violate the automatic stay.

4th Circuit, Virginia, Virginia Western District