October 02, 2020

Eleventh Circuit Reads Husky Narrowly, Perhaps Too Narrowly

Reading Husky narrowly, the Eleventh Circuit requires that fraud occur before a debt arises to make the debt nondischargeable under Section 523(a)(2)(A).

11th Circuit

October 01, 2020

Repaying Salary After Arrest Isn’t Compensation for Loss and Isn’t Dischargeable

An obligation can be penal in nature, and thus nondischargeable, even though it’s measured by pecuniary loss.

3rd Circuit, New Jersey

September 30, 2020

On a Split, Long Island Judge Allows Selling a Home Despite the Homeowner’s Objection

A homestead exemption does not bar selling a home when the chapter 7 debtor has no equity in the property, Judge Robert Grossman says.

2nd Circuit, New York, New York Eastern District

September 22, 2020

‘No Harm, No Foul’ Doesn’t Entitle a Debtor to a Discharge, BAP Says

Advice-of-counsel defense doesn’t work when intent is clearly fraudulent.

10th Circuit

September 17, 2020

District’s Model Chapter 13 Plan Violates the Code by Requiring More than 60 Payments

Detroit’s Judge Randon holds that a chapter 13 plan’s five-year duration begins to run from the first payment, not from confirmation.

6th Circuit, Michigan, Michigan Eastern District

September 10, 2020

Student Loan Servicer Sanctioned $378,000 for Civil Contempt by New York Judge

Bankruptcy Judge Martin Glenn imposed civil contempt sanctions for ignoring court orders over five years.

2nd Circuit, New York, New York Southern District

September 08, 2020

Ninth Circuit: Government Doesn’t Pay Counsel Fees on Reversal of Sua Sponte Actions

Will there be occasions where the government must pay a debtor’s counsel’s fees when a U.S. Trustee unsuccessfully opposes a debtor’s initiative?

9th Circuit

September 04, 2020

Not All Student Loans Are Nondischargeable, Tenth Circuit Holds

Tenth Circuit joins the Fifth Circuit by holding that student loans are not ‘educational benefits’ under Section 523(a)(8)(A)(ii).

10th Circuit

September 02, 2020

Claims Discharged in Chapter 7 Revive If the Case Is Converted to Chapter 13

Courts are split over the effect on claims discharged in chapter 7 if the debtor converts the case to chapter 13.

7th Circuit, Illinois, Illinois Southern District

August 31, 2020

Fifth Circuit Invalidates Local Chapter 13 Plan Regarding Tax Refunds

Below median debtors are no longer required to turn over tax refunds in excess of $2,000.

5th Circuit