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ABI Journal

July 29, 2021

Circuits Split on Allowing Debtors to Cure Chapter 13 Plan Defaults After Five Years

Tenth Circuit splits with the Third and Seventh Circuits on allowing a debtor to cure defaults after a five-year plan has ended.

10th Circuit

July 26, 2021

General Default Judgment Didn’t Satisfy Requirements of Issue Preclusion, Circuit Says

If the complaint was properly plead, a general default judgment might invoke issue preclusion to bar discharge of a debt.

11th Circuit

July 20, 2021

All Private Student Loans Are Not Excepted from Discharge, Second Circuit Holds

No circuit split: The Second Circuit agrees with the Fifth and Tenth Circuits that only a subset of private student loans is automatically nondischargeable.

2nd Circuit

July 06, 2021

Maryland Decision Shows the Hardship Imposed on Debtors by Student Loans

Judge Harner does the best she can to ease the burden imposed on a debtor by student loans.

4th Circuit, Maryland

June 28, 2021

Judgment for Sexual Discrimination Automatically Made the Debt Nondischargeable

Although the arbitrator didn’t explicitly find willful and malicious injury, the nature of a successful claim for sexual discrimination supplied the required findings for nondischargeability.

9th Circuit

June 17, 2021

Treble Damages for ‘Willfulness’ Won’t Automatically Result in Nondischargeability

The lack of specific findings of fact by the arbitrator meant that a treble damage award for willful breach of contract was dischargeable.

2nd Circuit, New York, New York Eastern District

June 04, 2021

Arbitration Clause Results in Temporary Stay of ‘Core’ Proceedings in Bankruptcy Court

Decision by Bankruptcy Judge Michelle Harner demonstrates the flaw in the Fourth Circuit’s rule requiring parallel proceedings in bankruptcy court and in arbitration when disputes are both core and non-core.

4th Circuit, Maryland

June 03, 2021

Avoiding a Lien Doesn’t Bar Collecting the Underlying, Nondischargeable Debt

First Circuit BAP explains what lien avoidance does and doesn’t do.

1st Circuit

May 24, 2021

Judge Elizabeth Katz Gives Some Relief for a Debtor Ineligible to Discharge Student Loans

Massachusetts bankruptcy judge requires flexibility from both the government and the debtor who is saddled with huge student loans.

1st Circuit, Massachusetts

May 17, 2021

Having Nondischargeable Debts Doesn’t Entitle a Chapter 7 Debtor to Object to Claims

Courts are split on whether having nondischargeable debts gives an individual chapter 7 debtor standing to object to claims.

6th Circuit, Tennessee, Tennessee Western District