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ABI Journal

523

Most Unscheduled Debts May Be Discharged

Jan 2022

Bankruptcy Code

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.

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.

Discharge Cuts Off Future Liability on a Guaranty, Some Courts Hold on a Split

The ‘conduct’ test in the Seventh Circuit, not the ‘accrual test,’ determines when a claim arose and whether it was discharged.

Claims Not Scheduled Before the Bar Date Aren’t Always Excepted from Discharge

Courts are split on whether a claim is discharged if it was scheduled after the bar date but in time to receive a distribution.