March 06, 2020

Must a Debtor Be Destitute Before Discharging Student Loans?

Unemployed for 16 months, surviving on food stamps, and living rent-free enabled a debtor to discharge student loans.

7th Circuit, Illinois, Illinois Northern District

February 20, 2020

Large Medical Bills Held Not to Be ‘Consumer’ Debts

Courts are split on whether large medical bills are consumer debts that invoke the means test and can bar relief in chapter 7.

6th Circuit, Ohio, Ohio Southern District

January 28, 2020

Circuit Split Widens over Discharging Taxes on Late-Filed Returns

The Supreme Court has ducked the split twice in recent years but should tackle the question this time around.

11th Circuit

January 15, 2020

A Prior BAP Opinion Is Virtually Binding on a Later BAP Panel

A later First Circuit BAP panel should follow BAP authority unless the prior opinion seems “dead wrong.”

1st Circuit

January 09, 2020

Courts Interpret Brunner Too Harshly, Bankruptcy Judge Cecelia Morris Says

A debtor with a law degree but only $37,500 in gross annual income was permitted to discharge more than $220,000 in student loans.

2nd Circuit, New York, New York Southern District

January 03, 2020

Holding a Contempt Hearing May Be Ok, but the Remedy Might Violate Automatic Stay

A contempt hearing fell under the ‘criminal’ exception to the automatic stay, but jailing a debtor to coerce payment of a prepetition debt violated the stay, Judge Grossman ruled.

2nd Circuit, New York, New York Eastern District

November 25, 2019

Medical Bills Are Held to Be Consumer Debts, Invoking the Means Test

Someone forced into bankruptcy on account of medical bills will also be forced into chapter 13.

7th Circuit, Illinois, Illinois Central District

November 19, 2019

Student Loans Discharged in Part, Even Though Debtor Wasn’t Destitute

A bankruptcy judge can afford little relief from student loans, even for sympathetic debtors who try hard to repay their debts.

9th Circuit, Oregon

November 05, 2019

Case Shows How Taggart Tilted the Scale Toward Lenders Accused of Contempt

An ambiguous demand letter violated the discharge injunction, but the lender was not held in contempt in light of Taggart.

6th Circuit, Michigan, Michigan Western District

November 04, 2019

If It’s Consensual, a Plan Can Discharge a Nondischargeable Debt

A debt that’s been paid in full under state law is discharged even if the debtor never receives a discharge, Judge Klein says.

9th Circuit, California, California Eastern District