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ABI Journal

June 10, 2022

Corporate Debtors in Subchapter V Can’t Discharge Nondischargeable Debts, Circuit Says

Both individuals and corporations in subchapter V of chapter 11 are barred from discharging debts that are nondischargeable under Section 523(a).

4th Circuit

May 25, 2022

In Reciprocity States, the Court Must Rule on Contract Issues to Shift Fees, Circuit Says

Even if a dischargeability suit is based on a contract, the winner is not entitled to fee-shifting if the court rules on noncontract issues.

9th Circuit

May 20, 2022

Second Circuit Allows Appellate Attorneys’ Fees for Upholding a Contempt Citation

Finally, a circuit court cites Taggart to help a debtor enforce the discharge injunction.

2nd Circuit

May 17, 2022

Importance of the Supreme Court’s Upcoming Bartenwerfer Decision Seen in Florida Case

The decision by the Supreme Court next term in Bartenwerfer will tell us whether debts can be automatically nondischargeable, even when the debtor is without fault.

11th Circuit, Florida, Florida Southern District

May 11, 2022

Circuits Possibly Split on Bankruptcy as Discharging Coal Act Liability for Health Benefits

Over a dissent, the Eleventh Circuit held that a 1995 chapter 11 plan discharged the liability of ‘related persons’ to pay health care benefits when a coal producer defaulted on the obligation in 2016.

11th Circuit

May 04, 2022

Cert Granted to Decide: Is a Principal’s Liability for an Agent’s Fraud Nondischargeable?

The circuits are split on whether an innocent debtor’s liability is automatically nondischargeable when an agent or partner committed fraud.

Supreme Court

April 19, 2022

Judge Brown Finds a Loophole Where Debtors Get Discharges Despite Nondisclosure

Had Congress considered the facts that were before Bankruptcy Judge Elizabeth Brown, it surely would have written the statute differently, this writer believes.

10th Circuit, Colorado

April 05, 2022

A Client Can Be Liable for Sanctions from the Lawyer’s Violation of Rule 9011

Judge Klein let a lawyer off the hook for violating Rule 9011 because the lawyer had already been punished enough.

9th Circuit, California, California Eastern District

March 16, 2022

Discharging Student Loans Puts Bankruptcy Judges in Untenable Positions

Bankruptcy judges are required to predict the unknown and the unknowable when deciding how much debtors can repay in student loans.

10th Circuit, Kansas

February 10, 2022

Costs of a Disciplinary Proceeding Again Held Nondischargeable Under Section 523(a)(7)

Seventh Circuit says that costs incurred by disciplinary authorities are not in compensation for ‘actual pecuniary loss.’

7th Circuit