April 09, 2018

Debtor Successfully Claims an Exemption 19 Years after Discharge

Law v. Siegel allows exempting an asset that had not been scheduled.

2nd Circuit, New York, New York Western District

April 06, 2018

Chicago Wins One Round in Battle over Parking Tickets

The battle continues in Chicago over using chapter 13 to beat parking tickets.

7th Circuit, Illinois, Illinois Northern District

April 05, 2018

Structured Finance Protects Tuition Payments from Fraudulent Transfer Suits

Children were the initial transferees of tuition payments, thus giving schools the ‘good faith’ defense to fraudulent transfers.

2nd Circuit, New York, New York Eastern District

April 04, 2018

Another Bankruptcy Judge Disregards Student Loans on Chapter 13 Eligibility

Student loan debtor ineligible for chapter 7 may pursue chapter 13 even with too much unsecured debt, Judge Catherine J. Furay says.

7th Circuit, Wisconsin, Wisconsin Western District

April 03, 2018

Not a ‘Mechanical Rule,’ Judicial Estoppel Requires Benefit, Second Circuit Says

Judicial estoppel requires ‘an effort to game the bankruptcy system.’

2nd Circuit

April 03, 2018

Circuit Says Bankruptcy Lawyers Can’t Advise Clients to Pay by Credit Card

Milavetz invalid-purpose test isn’t applicable to incurring debt to pay a retainer.

11th Circuit

April 02, 2018

Chapter 13 Strip-Off Ok Even if Lienholder Does Not File a Claim, Fourth Circuit Holds

A contrary result would have obviated the judicially recognized right to strip off underwater subordinate liens in chapter 13.

4th Circuit

March 28, 2018

Madoff Opinions Ease Pleading Requirements in Suits Against Subsequent Transferees

Bankruptcy Judge Vyskocil holds that alter ego need not be alleged to recover from a corporation’s sole shareholder as the beneficiary of a fraudulent transfer.

2nd Circuit, New York, New York Southern District

March 27, 2018

Rule 3001(c)(2)(D) Sanction Was 16 Times the Amount in Controversy

Innocent mistake turns into a $6,000 sanction for ‘willful failure to cooperate.’

10th Circuit, Kansas

March 26, 2018

Seventh Circuit Allows Anticipated Tax Refunds to Be Offset by Expenses in Chapter 13

On direct appeal, Seventh Circuit upholds Bankruptcy Judge Thorne by allowing chapter 13 debtors to retain anticipated refunds from earned income tax credits.

7th Circuit