June 03, 2019

Supreme Court Rejects Strict Liability for Discharge Violations

‘No objectively reasonable basis’ is the high court standard to find civil contempt for violating the discharge injunction.

Supreme Court

May 29, 2019

Fourth Circuit Eliminates a Split on Modifying Short Term Mortgages in Chapter 13

Joining two other circuits, the Fourth Circuit now permits a chapter 13 debtor to strip down a short term home mortgage to the value of the property.

4th Circuit

May 24, 2019

Sixth Circuit Muses on Whether ‘Prudential Standing’ Applies in Bankruptcy

New judge on the Sixth Circuit raises a host of questions about the requisites of standing in bankruptcy court.

6th Circuit

May 23, 2019

Reconstructed Time Records Are Ok in a POC for Pre-Filing Attorneys’ Fees

Rule 3001 doesn’t require time records in a mortgage lender’s proof of claim, Judge Loyd says.

10th Circuit, Oklahoma, Oklahoma Western District

May 22, 2019

‘Earmarking’ Only Applies When a Debtor Receives a Loan from a Third Party

Money taken from a debtor’s own retirement account to pay a creditor does not qualify for the earmarking defense, Chief Judge Fehling says.

3rd Circuit, Pennsylvania, Pennsylvania Eastern District

May 21, 2019

Supreme Court Agrees to Rule on What Is or Is Not a ‘Final, Appealable’ Order

For now, the high court ducks an important automatic stay question for chapter 13 debtors.

Supreme Court

May 20, 2019

Did Segal Survive Butner in Defining Property of the Estate?

Judge Perkins in Illinois says the ‘sufficiently rooted’ test from Segal v. Rochelle did not survive Butner and the adoption of the Bankruptcy Code.

7th Circuit, Illinois, Illinois Central District

May 16, 2019

Direct Mortgage Payments Are ‘Under the Plan,’ Ninth Circuit BAP Says

BAP joins the majority of courts by saying that defaulting on direct mortgage payments precludes a chapter 13 debtor from receiving a discharge.

9th Circuit

May 15, 2019

Fifth Circuit Facilitates ‘No Money Down’ Chapter 13s

Bankruptcy courts must cooperate before debtors’ counsel are assured of being reimbursed for advancing costs and expenses before filing.

5th Circuit

May 13, 2019

Malicious Theft of Trade Secrets Doesn’t Result in Nondischargeability, Circuit Says

Egregious behavior doesn’t always result in nondischargeability for willful and malicious injury.

4th Circuit