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ABI Journal

9th Circuit

Proven Fraud Won’t Always Cut Down the Amount of a Homestead Exemption, BAP Says

To limit the amount of a homestead exemption under Section 522(q)(1)(B)(ii), the fraud must have occurred after the debtor became a fiduciary.

A Promise Not to Enforce a Judgment Meant There Was No Discharge Violation

The inability to modify a Section 524(a) discharge put the Ninth Circuit BAP in a bind.

There’s Reciprocal Fee-Shifting in California When a Contract Has Unilateral Fee-Shifting

In California, bringing litigation with a marginal possibility of success could be a bad bet whenever a contract permits one side to recover attorneys’ fees.

BAP Upholds Confirmation of a Plan with No Trust for Future Asbestos Claimants

Ninth Circuit BAP confirmed a plan with no future creditors’ trust when the debtor claimed there were no future claims and no one was in court representing future claimants.

State Bar Disciplinary Proceedings Aren’t Barred by the Automatic Stay or Discharge

A BAP decision raises the question of whether Ninth Circuit authority has been implicitly overruled by Supreme Court decisions.

How to Liquidate a Secured Lender’s Collateral and Still Get Paid

To liquidate an underwater lender’s collateral, there must be a carveout giving unsecured creditors a ‘meaningful distribution.’

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.

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.

Ninth Circuit BAP Limits Bartenwerfer on Vicarious Liability for Nondischargeability

The Ninth Circuit BAP explains why Bartenwerfer didn’t open the door to vicarious liability for all forms of nondischargeability in Section 523(a).

Fraudulent ‘Omission’ Isn’t a ‘Statement’ for Nondischargeability Purposes, BAP Says

If a fraudulent omission were a ‘statement,’ the BAP explains why nondischargeability would be almost impossible to prove.