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ABI Journal

December 20, 2018

Divorcing While Bankrupt Lays Traps for the Unwary

Matrimonial lawyers need bankruptcy and tax advice when the client is insolvent.

10th Circuit, Utah

December 19, 2018

Tuition Payments for Adult Children Squarely Held to Be Constructively Fraudulent

New York judge allows insolvent parents to pay for a minor child’s expensive education.

2nd Circuit, New York, New York Southern District

December 14, 2018

First Circuit Terminates the Stay Entirely as to Repeat Filers

In the first opinion at the circuit level, the First Circuit latches onto the lousy drafting of Section 362(c)(3)(A) to end the automatic stay entirely, 30 days after the second filing within a year.

1st Circuit

December 13, 2018

Direct Mortgage Payments Are Not ‘Provided For’ in a Plan, Eleventh Circuit Holds

By implication, the Eleventh Circuit would allow a general chapter 13 discharge to a debtor who defaults on direct mortgage payments, an issue where lower courts are split.

11th Circuit

December 11, 2018

Advice of Counsel Must Be Given in Advance to Constitute a Defense, Circuit Says

Tenth Circuit lays out the elements of denial of discharge for failure to obey an order.

10th Circuit

December 06, 2018

As an Exempt Asset, a Dog’s Value Is Priceless, Judge Collins Says

Pet insurance and proceeds are exempt, even above the value of the pet.

9th Circuit, Arizona

December 05, 2018

Unprotected Sex Results in a $250,000 Nondischargeable Debt

Lying about herpes resulted in a nondischargeable debt for fraud and battery.

December 03, 2018

Tuition Payments by Insolvent Parents (Likely) Constitute Fraudulent Transfers

District judge in Brooklyn overturns the bankruptcy court and again exposes colleges and universities to the receipt of fraudulent transfers when insolvent parents pay their childrens’ tuition.

2nd Circuit, New York, New York Eastern District

November 29, 2018

Appreciation in a Home Is Exempt in California, But Not in Washington, Circuit Says

Vigorous dissent argues that the majority misread Ninth Circuit precedent in barring a debtor from exempting post-petition appreciation in a homestead.

9th Circuit

November 27, 2018

Courts Split on Arbitrating Dischargeability of Student Loans

Supreme Court’s Epic decision may end up forcing debtors to arbitrate dischargeability of loans.

7th Circuit, Indiana, Indiana Southern District