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ABI Journal

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 District

August 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 District

August 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 Circuit

August 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 Circuit

August 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 Circuit

July 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 Circuit

July 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, Kansas

July 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 Circuit

July 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 Rico

July 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