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ABI Journal

June 15, 2021

Ninth Circuit Puts Limits on the Supreme Court’s Preclusion of Equitable Remedies

Law v. Siegel didn’t bar bankruptcy courts from invoking doctrines of claim and issue preclusion, the Ninth Circuit says.

9th Circuit

June 14, 2021

Chapter 13 Debtors Lost Appreciation in Property After Conversion to ‘7’

On an issue where the courts are split, a judge in Washington State says that the debtors lose the post-petition appreciation in the value of estate property when a chapter 13 case converts to chapter 7.

9th Circuit, Washington, Washington Western District

June 11, 2021

Sixth Circuit Creates a Split by Requiring Dismissal of an Abusive Chapter 13 Filing

Disagreeing with two other circuits, the Sixth Circuit finds no power in the bankruptcy court to avoid dismissing a chapter 13 case even if the debtor filed repeatedly in bad faith to avoid foreclosure.

6th Circuit

June 10, 2021

Unlike IRAs, Debtors Keep Inherited 401(k)s Because They Aren’t Estate Property

Exemptions never come into play with inherited 401(k)s because they aren’t estate property in the first place, Judge Hodges explains.

4th Circuit, North Carolina, North Carolina Western District

June 04, 2021

Arbitration Clause Results in Temporary Stay of ‘Core’ Proceedings in Bankruptcy Court

Decision by Bankruptcy Judge Michelle Harner demonstrates the flaw in the Fourth Circuit’s rule requiring parallel proceedings in bankruptcy court and in arbitration when disputes are both core and non-core.

4th Circuit, Maryland

June 02, 2021

Lack of Permanent Resident Status Doesn’t Always Defeat a Homestead Exemption

Having a family member in the home who made a formal request for legal residence will suffice to permit a Florida homestead exemption, Judge Jennemann said.

11th Circuit, Florida, Florida Middle District

May 25, 2021

Chapter 13 Debtor May (Sometimes) Contribute to Retirement Plans

A chapter 13 debtor was permitted to make a fraction of the pension contributions permitted by the IRS Code.

4th Circuit, South Carolina

May 24, 2021

Judge Elizabeth Katz Gives Some Relief for a Debtor Ineligible to Discharge Student Loans

Massachusetts bankruptcy judge requires flexibility from both the government and the debtor who is saddled with huge student loans.

1st Circuit, Massachusetts

May 21, 2021

Joint Tax Refund Isn’t Estate Property in Florida if Only One Spouse Files Bankruptcy

When personal property can be owned by the entireties, a tax refund isn’t estate property even if the bankrupt spouse earned all income.

11th Circuit, Florida, Florida Middle District

May 17, 2021

Having Nondischargeable Debts Doesn’t Entitle a Chapter 7 Debtor to Object to Claims

Courts are split on whether having nondischargeable debts gives an individual chapter 7 debtor standing to object to claims.

6th Circuit, Tennessee, Tennessee Western District