August 13, 2021
In ‘Chapter 20,’ Discharged Mortgage Claim Resurrects as Unsecured, EDNY Judge Says
Judge Grossman didn’t abolish ‘chapter 20’ entirely. He required the debtor to treat the subordinate mortgage lender like all other unsecured creditors, even though the debtor’s personal liability to the lender had been discharged in the prior chapter 7 case.
2nd Circuit, New York, New York Eastern DistrictAugust 11, 2021
NC Appellate Court Rules Plans Must Be Unambiguous to Hold a Creditor in Civil Contempt, Citing Taggart
After Taggart v. Lorenzen, plans, orders and injunctions must be highly specific to hold an offending creditor in contempt.
4th Circuit, North Carolina, North Carolina Eastern DistrictAugust 05, 2021
Second Circuit Makes Taggart Applicable to All Contempt Citations in Bankruptcy Court
Even for egregious, repeated violations of Bankruptcy Rule 3002.1, the bankruptcy court may only award recovery of economic losses, never punitive damages.
2nd CircuitAugust 04, 2021
Chapter 13 Trustees Are Paid Even if Dismissal Comes Before Confirmation, BAP Says
The Ninth Circuit BAP joins the minority on an issue that’s headed for the court of appeals.
9th CircuitAugust 02, 2021
A Motion to Dismiss as of Right Doesn’t Bar the Court from Dismissing with Prejudice
Ninth Circuit BAP doesn’t require a formal motion to dismiss with prejudice when a debtor files a voluntary motion to dismiss as of right under Section 1307(b).
9th CircuitJuly 29, 2021
Circuits Split on Allowing Debtors to Cure Chapter 13 Plan Defaults After Five Years
Tenth Circuit splits with the Third and Seventh Circuits on allowing a debtor to cure defaults after a five-year plan has ended.
10th CircuitJuly 28, 2021
Chapter 13 Debtors Keep Windfalls with No Connection to Assets on the Filing Date
Taking sides with the minority on a split, bankruptcy judges in Kansas allow chapter 13 debtors to retain windfalls acquired after filing.
10th Circuit, KansasJuly 26, 2021
General Default Judgment Didn’t Satisfy Requirements of Issue Preclusion, Circuit Says
If the complaint was properly plead, a general default judgment might invoke issue preclusion to bar discharge of a debt.
11th CircuitJuly 23, 2021
Puerto Rico Case and the Efficacy of Prof. Westbrook’s Definition of ‘Executoriness’
The bankruptcy community needs a better definition of what’s an executory contract, and Prof. Jay Westbrook has it.
1st Circuit, Puerto RicoJuly 20, 2021
All Private Student Loans Are Not Excepted from Discharge, Second Circuit Holds
No circuit split: The Second Circuit agrees with the Fifth and Tenth Circuits that only a subset of private student loans is automatically nondischargeable.
2nd Circuit