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ABI Journal

February 01, 2022

Section 727(a)(3) Isn’t a Catchall Denying Discharge for All Manner of Fraud

Someone who commits fraud can’t be denied a discharge for that reason alone if the debtor kept accurate books and records of the fraud.

6th Circuit, Tennessee, Tennessee Western District

January 31, 2022

Dependence on Parental Financial Assistance Meant Student Loans Were Dischargeable

The opinion by Judge Silverstein contains numerous sound bites for judges and debtors aiming to discharge student loans owed by individuals living in desperate circumstances.

3rd Circuit, Delaware

December 27, 2021

PACA Debt Isn’t Nondischargeable, Chicago Judge Says, Siding with the Minority

Lower courts are split on whether violating a PACA trust results in a nondischargeable debt. The question is on direct appeal to the Eleventh Circuit.

7th Circuit, Illinois, Illinois Northern District

December 14, 2021

Ninth Circuit Takes a Hard Line on What’s an Equivalent Tax Return for Dischargeability

Interpreting the hanging paragraph in Section 523(a), the Ninth Circuit sticks to the Beard test in deciding whether something is close enough to a tax return to justify discharging a tax debt.

9th Circuit

December 03, 2021

Ninth Circuit Affirms the BAP on the Outer Limits of the Discharge Injunction

Deducting a discharged loan to a child from her inheritance didn’t violate the discharge injunction.

9th Circuit

November 16, 2021

Split Widens on Dischargeability for Third Party’s Violation of Securities Laws

Circuits are split 2/1 on whether a debtor must have committed a securities law violation before a judgment is made nondischargeable under Section 523(a)(19).

8th Circuit, Minnesota

November 09, 2021

Judge Barnes Tells Gamblers What Records to Keep to Win a Discharge in Bankruptcy

The suggestion that the debtor never won undercut the poker player’s testimony about uncorroborated gambling losses.

7th Circuit, Illinois, Illinois Northern District

October 22, 2021

Fourth Circuit Would Discharge CERCLA Claims if Pollution Occurred Before Filing

Maryland district judge predicts that the Fourth Circuit would adopt a debtor-friendly rule more broadly discharging environmental claims when the acts occurred before chapter 11.

4th Circuit

October 20, 2021

Capped Landlord Claim Can Also Be Nondischargeable, Eighth Circuit Says

Retired Judge Kressel wrote the opinion in 2000 relied on by the Eighth Circuit.

8th Circuit

October 19, 2021

Bad Faith Permits Dismissal of a Chapter 13 Case with Conditions, Judge Waites Says

Debtor accepted a bar to refiling to avoid dismissal with prejudice of her chapter 13 case.

4th Circuit, South Carolina