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ABI Journal

October 31, 2019

Circuit Split Narrows on the Automatic Stay and Turnover of Repossessed Cars

Third Circuit also holds that turnover in Section 542(a) is not automatic. The debtor must mount an adversary proceeding to obtain a turnover of property.

3rd Circuit

October 30, 2019

Another Appellate Court Bars Arbitration of ‘Core’ Claims

State attorney general was allowed to intervene in a class suit alleging that a lender violated usury laws.

4th Circuit, Virginia, Virginia Eastern District

October 25, 2019

Discharge Is Enforceable Only in the Issuing District, Fifth Circuit Says

Fifth Circuit bars nationwide class actions to enforce the discharge injunction. However, the appeals court ruled that private student loans are dischargeable.

5th Circuit

October 23, 2019

Stay Annulment Is Ok Just to Avoid Liability for Willful Stay Violation

The debtors didn’t have a great case for a stay violation after filing six chapter 13 petitions and living rent-free for five years.

9th Circuit

October 22, 2019

Fifth Circuit Still Precludes Arbitration of ‘Core’ Bankruptcy Issues

Fifth Circuit panel does not interpret recent Supreme Court authority as overruling circuit opinions allowing bankruptcy courts to disregard arbitration agreements.

5th Circuit

October 18, 2019

Courts Split on Allowing a Late Claim if the Creditor Was Not Listed

Bankruptcy Judge Elizabeth Brown of Denver differs with Bankruptcy Judge Michelle Harner of Baltimore on the interpretation of Bankruptcy Rule 3002(c)(6).

10th Circuit, Colorado

October 17, 2019

In Chapters 7 and 13, ‘Excusable Neglect’ Won’t Always Justify Filing a Late Claim

A creditor without knowledge of bankruptcy isn’t always entitled to file a late claim in chapters 7, 12, and 13, Judge Harner says.

4th Circuit, Maryland

October 09, 2019

Knowledge of Fraud Before Discharge Doesn’t Always Preclude Revocation

Eleventh Circuit refuses to read words into Section 727(d)(2) that aren’t there.

11th Circuit

October 07, 2019

Debtors’ Attorneys Are Paid in Chapter 13 Before Secured Creditors

Indiana bankruptcy and district judges rule that secured lenders are only entitled to ‘adequate protection’ until the debtor’s counsel’s allowed fees have been paid in full.

7th Circuit, Indiana, Indiana Southern District

October 04, 2019

Separate Classification of a Child’s Student Loan Barred in a Chapter 13 Plan

Factors in permitting separate classification of debts include moral obligation and tangible benefit.

4th Circuit, North Carolina, North Carolina Eastern District