523

Ninth Circuit Criticizes the Supreme Court’s Kelly v. Robinson

Discovery sanctions are dischargeable under Section 523(a)(7), even when incorporated into a bar disciplinary suspension.

Eleventh Circuit Holds that a Chapter 13 Plan Alone Can’t Assume a Lease or Contract

In the first court of appeals decision on the topic, the Eleventh Circuit holds that the chapter 13 trustee alone has power to assume a lease or contract.

Fifth Circuit Cites ‘Clearly Erroneous’ Findings to Declare a Debt Nondischargeable

Circuit says it’s easy to show reasonable reliance on a false financial statement.

May 2020

Delaware District Court Upholds Discharge of Environmental Fines in Chapter 11

Environmental fines are discharged in chapter 11 because they do not result from pecuniary loss.

June 2020

Must a Debtor Be Destitute Before Discharging Student Loans?

Unemployed for 16 months, surviving on food stamps, and living rent-free enabled a debtor to discharge student loans.

Silence in the Face of a Duty to Disclose Is Not a ‘Statement,’ 9th Cir. BAP Holds

The Ninth Circuit BAP closed a loophole that would have allowed a recipient of public assistance benefits to discharge a debt for overpayment.

Eleventh Circuit Opinion Shows Taggart’s Effect on Discharge Contempt Disputes

Taggart allows a court to deny a contempt motion without deciding whether the creditor’s action actually violated the discharge injunction.

May a Chapter 13 Plan Pay a Larger Percentage Toward Student Loans?

Since Congress has made student loans virtually nondischargeable, why can’t a chapter 13 plan discriminate in favor of paying more toward student loans?