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ABI Journal

February 12, 2025

Judgment Liens Based on Nondischargeable Debts May Be Avoided as ‘Impairments’

A homestead can be protected from collection of a nondischargeable debt, limiting the judgment creditor to attaching nonexempt property.

9th Circuit, Arizona

February 03, 2025

A Disguised Loan Agreement Didn’t Create a ‘Fair Ground of Doubt’ Under Taggart

The Fifth Circuit undertook a legal analysis of a complex loan agreement to decide there was no ‘fair ground of doubt’ under Taggart that the lender was violating the discharge injunction.

5th Circuit

January 29, 2025

Debtors Have a Narrow Window in ‘13’ to Redeem Foreclosed Property, BAP Says

Because a right of redemption does not give rise to a claim, Section 1322(b) doesn’t enable a debtor to redeem foreclosed property when the right of redemption has expired.

9th Circuit

January 28, 2025

Debtor Not Compelled to Arbitrate Automatic Stay or Discharge Violations

A district court in Minnesota left the door open for sometimes compelling debtors to arbitrate claims arising in a bankruptcy case.

8th Circuit, Minnesota

January 27, 2025

Without Levy, a Recorded Judgment Lien Is Unperfected in Some States

In New Jersey, a trustee’s hypothetical judicial lien has priority over a judgment lien if the judgment lienholder has not made a levy on the property.

3rd Circuit, New Jersey

January 08, 2025

A Judgment Lien Isn’t Created by Filing a UCC Financing Statement, Judge Furay Says

To obtain a judgment lien, filing a UCC financing statement is no substitute for docketing a judgment.

7th Circuit, Wisconsin, Wisconsin Western District

January 07, 2025

Debt Held Nondischargeable as to Someone Who Didn’t Commit a Defalcation

Bartenwerfer held to make a debt nondischargeable as to someone who was neither a partner nor an agent.

9th Circuit, Hawaii

January 06, 2025

A Mortgage Deficiency Judgment Is a Judicial Lien Subject to Avoidance Under § 522(f)

A deficiency judgment resulting from mortgage foreclosure is not ‘a judgment arising out of a mortgage foreclosure’ and can be avoided as a judgment lien.

2nd Circuit, Connecticut

December 31, 2024

A Consensual Judgment Is a Judgment Lien Subject to Avoidance Under Section 522(f)

‘Obtained by’ legal proceedings, a consent judgment is still a judgment lien that can be avoided if it impairs an exemption.

6th Circuit, Ohio, Ohio Southern District

December 24, 2024

Ninth Circuit Primed to Decide Whether Emotional Distress Damages Survived Taggart

The Ninth Circuit BAP eased the burden on debtors needing to prove that a lender violated Section 524(i) by failing to credit payments made under a plan.

9th Circuit