November 20, 2020

Exercise Caution in Electing Remedies Against Someone Who May File Bankruptcy

Sometimes, being too aggressive backfires when the defendant files bankruptcy.

3rd Circuit, Pennsylvania, Pennsylvania Western District

October 28, 2020

Fifth Circuit Allowed an Extension of the Discharge Deadline After the Deadline Had Passed

The equitable power under Section 105(a) permits extending the discharge objection deadline when the court makes a mistake.

5th Circuit

October 21, 2020

‘Disposable Income’ Must Be Carefully Defined to Preserve the Debtor’s Discharge

Judge Christopher Klein parses the burdens of proof on conversion, dismissal and right to a discharge for an individual in chapter 11.

9th Circuit, California, California Eastern District

October 02, 2020

Eleventh Circuit Reads Husky Narrowly, Perhaps Too Narrowly

Reading Husky narrowly, the Eleventh Circuit requires that fraud occur before a debt arises to make the debt nondischargeable under Section 523(a)(2)(A).

11th Circuit

October 01, 2020

Repaying Salary After Arrest Isn’t Compensation for Loss and Isn’t Dischargeable

An obligation can be penal in nature, and thus nondischargeable, even though it’s measured by pecuniary loss.

3rd Circuit, New Jersey

September 29, 2020

Surety Bonds Aren’t Executory Contracts and Can’t Be Assumed Even if They Are

Insurance companies must nail down the treatment of performance bonds before plan confirmation.

5th Circuit, Louisiana

September 10, 2020

Student Loan Servicer Sanctioned $378,000 for Civil Contempt by New York Judge

Bankruptcy Judge Martin Glenn imposed civil contempt sanctions for ignoring court orders over five years.

2nd Circuit, New York, New York Southern District

September 04, 2020

Not All Student Loans Are Nondischargeable, Tenth Circuit Holds

Tenth Circuit joins the Fifth Circuit by holding that student loans are not ‘educational benefits’ under Section 523(a)(8)(A)(ii).

10th Circuit

September 02, 2020

Claims Discharged in Chapter 7 Revive If the Case Is Converted to Chapter 13

Courts are split over the effect on claims discharged in chapter 7 if the debtor converts the case to chapter 13.

7th Circuit, Illinois, Illinois Southern District

August 24, 2020

Parental Support Isn’t Counted on Discharge of Student Loans, Judge Kendig Says

Private charity is not considered to be part of a debtor’s income under the first part of the Brunner test.

6th Circuit, Ohio, Ohio Northern District