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ABI Journal

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 District

October 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 District

October 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, Louisiana

September 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 District

September 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 Circuit

September 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 Circuit

September 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 District

September 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 District

August 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 District

August 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