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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 01, 2021

Third Circuit Makes Strict Rules Before Subrogation Rights Kick In

There can be no question about whether the beneficiary of a surety bond has been ‘paid in full’ before the surety has subrogation rights.

3rd Circuit

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 20, 2021

Split Heading to the Tenth Circuit on Sovereign Immunity for Section 544(b) Claims

The Tenth Circuit will likely take sides on a split between the Ninth and Seventh Circuits on Section 544(b) state-law claims brought by a trustee in the shoes of an actual creditor.

10th Circuit, Utah

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

July 02, 2021

Sovereign Immunity Prevailed Because a Slot Machine License Isn’t ‘Property’

In Pennsylvania, a gaming license isn’t ‘property.’ It’s a revocable license that can’t be owned.

3rd Circuit

May 28, 2021

Third Circuit Finds Broad Waiver of Sovereign Immunity for Suits Augmenting the Estate

Circuit Judge Ambro generously interprets Katz to mean that ratification of the Constitution waived state sovereign immunity broadly for suits to augment a bankrupt estate.

3rd Circuit

April 28, 2021

First Circuit Liberally Interprets the Police and Regulatory Stay Exception

The appeals court reviews the ‘totality of the circumstances’ when government action has elements of both regulatory enforcement and furtherance of the state’s pecuniary interest.

1st Circuit

April 14, 2021

Fourth Circuit Seems to Give the Government a Pass for Violating the Stay

Fourth Circuit expands federal government’s setoff rights under the Treasury Offset Program.

4th Circuit