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ABI Journal

August 25, 2020

Sanctions of $150,000 Upheld Against Nationwide Consumer Firm

When $50,000 in sanctions were not enough to coerce compliance with the Code and Rules, the Eleventh Circuit upheld $150,000 in sanctions for a second violation.

11th Circuit

August 24, 2020

Parental Support Isn’t Counted on Discharge of Student Loans, Judge Kendig Says

Private charity is not considered to be part of a debtor’s income under the first part of the Brunner test.

6th Circuit, Ohio, Ohio Northern District

August 21, 2020

Detroit District Judge Includes Social Security Benefits in the Chapter 13 ‘Abuse’ Test

Although Social Security benefits are not subject to the “operation of any bankruptcy or insolvency law,” judge says they can be considered in deciding whether someone should be allowed to confirm a chapter 13 plan or have a chapter 7 case dismissed for ‘abuse.’

6th Circuit, Michigan, Michigan Eastern District

August 18, 2020

Complete Disgorgement Is the Default Sanction for Failure to Disclose a Fee Agreement

Anything less than full disgorgement must be supported by ‘sound reasons’ and ‘solid evidence,’ the Tenth Circuit says.

10th Circuit

August 06, 2020

Seven-Year Chapter 13 Stretchout Isn’t Available for Plans Confirmed After March 27

Two judges agree that the CARES Act amendment allowing chapter 13 plans to run for seven years is applicable only to plans confirmed before March 27.

6th Circuit, Michigan, Michigan Eastern District

August 05, 2020

Ninth Circuit Says Assumption Under Section 365(p) Doesn’t Also Require Reaffirmation

Lease assumption is binding even if the debtor doesn’t follow the procedural requirements of Section 365(p).

9th Circuit

August 04, 2020

Asset Exempt in Chapter 13 Retains the Exemption After Conversion, First Circuit Says

Circuit split is eroding on the loss of a homestead exemption for failing to reinvest proceeds from a sale after filing.

1st Circuit

July 23, 2020

Another Workaround Following the Prohibition of Nunc Pro Tunc Orders

The Supreme Court hasn’t prohibited paying counsel fees for services rendered before the entry of a retention order, Judge Preston says.

6th Circuit, Ohio, Ohio Southern District

July 20, 2020

Creditor Socked with $41,000 in Sanctions for Filing Trumped-Up Criminal Charges

Bankruptcy Judge Warren makes sure the sanctions won’t be dischargeable if the offending creditor files his own bankruptcy.

4th Circuit, North Carolina, North Carolina Eastern District

July 17, 2020

Lower Courts Now Disagree on Modifying the Stay Retroactively After Acevedo

Did the Supreme Court’s Acevedo opinion preclude annulling the stay? The Ninth Circuit BAP says ‘no.’

9th Circuit