October 11, 2021
Student Loans Were Discharged Only with Assistance from Pro Bono Counsel
A debtor with negative disposable income was forced to go through two trials and three appeals to discharge student loans.
11th Circuit, Alabama, Alabama Middle DistrictOctober 07, 2021
On Student Loan Discharge, District Judge Requires Responses to Unasserted Defenses
New York district judge requires a student loan debtor to prove the reasonableness of living expenses when the lender never objected.
2nd Circuit, New York, New York Southern DistrictOctober 05, 2021
Surety Bonds Aren’t Executory Contract and Can’t Be Assumed, District Judge Says
An irrevocable surety bond isn’t executory because it gives the bonding company no further obligations to the debtor.
5th Circuit, LouisianaSeptember 29, 2021
Objections to Priority Claims May Follow Confirmation of a Chapter 13 Plan
Confirming a chapter 13 plan on the assumption that a claim was entitled to priority didn’t bar the debtors from later objecting to the priority of the claim.
7th Circuit, Wisconsin, Wisconsin Eastern DistrictSeptember 28, 2021
Time Limits for Effecting Service of Process Can Be Flexible, Eleventh Circuit Says
Under unusual circumstances, a two-year delay in completing service of process was not fatal in the Eleventh Circuit.
11th CircuitSeptember 16, 2021
Good Faith Is No Defense to an Allegedly Willful Stay Violation, Third Circuit Says
Lack of authority on point is no defense to a willful violation of the automatic stay, according to the Third Circuit.
3rd CircuitSeptember 10, 2021
Civil Penalties for Defrauding Consumers Weren’t Discharged Under Section 1141(d)(6)(A)
Reversing the bankruptcy court, a district judge in New York held that a civil penalty wasn’t discharged even though the fraud wasn’t committed against the government.
2nd Circuit, New York, New York Southern DistrictSeptember 08, 2021
Discharge Cuts Off Future Liability on a Guaranty, Some Courts Hold on a Split
The ‘conduct’ test in the Seventh Circuit, not the ‘accrual test,’ determines when a claim arose and whether it was discharged.
7th Circuit, Wisconsin, Wisconsin Eastern DistrictAugust 27, 2021
Claims Not Scheduled Before the Bar Date Aren’t Always Excepted from Discharge
Courts are split on whether a claim is discharged if it was scheduled after the bar date but in time to receive a distribution.
11th Circuit, Florida, Florida Middle DistrictAugust 02, 2021
A Motion to Dismiss as of Right Doesn’t Bar the Court from Dismissing with Prejudice
Ninth Circuit BAP doesn’t require a formal motion to dismiss with prejudice when a debtor files a voluntary motion to dismiss as of right under Section 1307(b).
9th Circuit