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ABI Journal

June 19, 2020

Second Circuit Nixes Nationwide Class Actions for Discharge Violations

Second Circuit says that later Supreme Court authority did not undermine the appeals court’s prior decision that creditors cannot compel arbitration of discharge violations.

2nd Circuit

June 16, 2020

Ninth Circuit Criticizes the Supreme Court’s Kelly v. Robinson

Discovery sanctions are dischargeable under Section 523(a)(7), even when incorporated into a bar disciplinary suspension.

9th Circuit

June 15, 2020

D.C. Circuit Has Strict Rules for Constitutional Standing in FDCPA Suits

An FDCPA suit raises the question of whether Spokeo will be applied to bankruptcy cases.

D.C. Circuit

June 12, 2020

Fifth Circuit Bans Molina Provisions in Chapter 13 Plans

Court cannot impose a nonstatutory provision on a chapter 13 ‘full payment’ plan that restricts the debtor’s right to modify a confirmed plan.

5th Circuit

June 08, 2020

Eleventh Circuit Holds that a Chapter 13 Plan Alone Can’t Assume a Lease or Contract

In the first court of appeals decision on the topic, the Eleventh Circuit holds that the chapter 13 trustee alone has power to assume a lease or contract.

11th Circuit

June 04, 2020

Ninth Circuit Narrowly Reads Section 506(d) on Voiding Liens After Claim Disallowance

A claim must be disallowed based on the invalidity of the debt before the associated lien can be voided under Section 506(d), the Ninth Circuit ruled in upholding the BAP.

9th Circuit

June 03, 2020

Sixth Circuit Allows Chapter 13 Debtors to Continue Retirement Plan Contributions

Sixth Circuit is the first court of appeals to take sides on a lower court split and opine that continuing to make voluntary contributions to retirement plans is excluded from ‘disposable income.’

6th Circuit

June 01, 2020

District Judge Rejects the Majority’s ‘Gotcha’ Approach to Automatic Abandonment

Sufficiently listing an asset anywhere in the schedules and SOFA will result in abandonment if the asset was not administered by the trustee, Utah district judge holds.

10th Circuit, Utah

May 28, 2020

BAP Didn’t See Barnhill as Prescribing the Date of Transfer from a Retirement Account

The First Circuit BAP evidently believes that a transfer occurred, even though an ordinary check wasn’t cashed.

1st Circuit

May 22, 2020

An Exempt Asset Effectively Loses Its Exemption in Chapter 13

Lower courts are split on whether an exempt asset is included in the calculation of “projected disposable income” in chapter 13.

10th Circuit, Colorado