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ABI Journal

June 03, 2025

Like 18th Century England, There’s No Jury Trial Right for Stay Violations

Granfinanciera tells us to study English law from the 18th century in deciding when there’s a right to a jury trial in bankruptcy cases.

9th Circuit, Washington, Washington Western District

May 30, 2025

Four Circuits Align: Section 1322(c)(2) Permits Bifurcating a Short-Term Mortgage

When a home mortgage matures during the term of a chapter 13 plan, the debtor may bifurcate and cram down the secured claim, the Ninth Circuit holds.

9th Circuit

February 24, 2025

Forbearance Agreement Wasn’t an Enforceable Waiver of the Automatic Stay

Bankruptcy Judge Laura Grandy (politely) faulted other federal courts for failing to follow the Illinois mortgage statute and decisions by the Illinois Supreme Court.

7th Circuit, Illinois, Illinois Southern District

February 03, 2025

A Disguised Loan Agreement Didn’t Create a ‘Fair Ground of Doubt’ Under Taggart

The Fifth Circuit undertook a legal analysis of a complex loan agreement to decide there was no ‘fair ground of doubt’ under Taggart that the lender was violating the discharge injunction.

5th Circuit

January 29, 2025

Debtors Have a Narrow Window in ‘13’ to Redeem Foreclosed Property, BAP Says

Because a right of redemption does not give rise to a claim, Section 1322(b) doesn’t enable a debtor to redeem foreclosed property when the right of redemption has expired.

9th Circuit

January 24, 2025

Companies Can Be ‘Bankruptcy Remote,’ if Properly Done

Bankruptcy Judge David Cleary wrote a manual on how a company can be ‘bankruptcy remote’ without violating public policy.

7th Circuit, Illinois, Illinois Northern District

January 23, 2025

Fourth Circuit Upholds a $31 Million Default Judgment for Discovery Abuses

Long Island’s Judge Grossman warns lawyers that they may be paid nothing if they file chapter 11 cases just to delay a secured creditor, with no legitimate strategy for selling the property, refinancing or confirming a plan.

4th Circuit

January 06, 2025

A Mortgage Deficiency Judgment Is a Judicial Lien Subject to Avoidance Under § 522(f)

A deficiency judgment resulting from mortgage foreclosure is not ‘a judgment arising out of a mortgage foreclosure’ and can be avoided as a judgment lien.

2nd Circuit, Connecticut

December 31, 2024

A Consensual Judgment Is a Judgment Lien Subject to Avoidance Under Section 522(f)

‘Obtained by’ legal proceedings, a consent judgment is still a judgment lien that can be avoided if it impairs an exemption.

6th Circuit, Ohio, Ohio Southern District

November 14, 2024

Barring Use of an Online Payment Platform Was an Automatic Stay Violation

Bankruptcy Judge Michelle Harner decided that a mortgage servicer must allow a chapter 13 debtor’s continued use of an online payment platform.

4th Circuit, Maryland