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ABI Journal

9th Circuit

Debt Held Nondischargeable as to Someone Who Didn’t Commit a Defalcation

Bartenwerfer held to make a debt nondischargeable as to someone who was neither a partner nor an agent.

Ninth Circuit Primed to Decide Whether Emotional Distress Damages Survived Taggart

The Ninth Circuit BAP eased the burden on debtors needing to prove that a lender violated Section 524(i) by failing to credit payments made under a plan.

For Nondischargeability, a Bankruptcy Court Can Find a Securities Law Violation

A decision from a state or federal court before bankruptcy finding a securities law violation isn’t required for nondischargeability under Section 523(a)(19).

Creating a Circuit Split, Ninth Circuit Allows Retirement Contributions in Chapter 13

The Ninth Circuit split with the Sixth Circuit in the interpretation of the ‘hanging paragraph’ in Section 541(b)(7). Courts are divided four ways on whether or how much a ‘13’ debtor may contribute to voluntary retirement plans after filing.

BAP Rejects Due Process Attack for Denial of ‘13’ Trustee Fees on Dismissal

Ninth Circuit BAP says there is no due process problem with denial of chapter 13 trustee fees if dismissal precedes confirmation.

Fully Secured, Nonrecourse Creditors Can Be Involuntary Petitioners, BAP Says

An involuntary petitioner whose claim was paid after filing is still counted as an involuntary petitioner, the Ninth Circuit BAP says.

A Chapter 13 Plan Amended Today Cannot Have an 84-Month Duration

The expiration of Section 1329(d) in March 2022 means that 84-month chapter 13 plans amended now must revert to 60-month plans.

Circuits Are Split on Assuming a Franchise Agreement when the Franchisor Objects

Once affirmed in the Ninth Circuit, the debtor could file a petition for certiorari to resolve an important circuit split on assumption of intellectual property contracts.

Bankruptcy Judge Hursh Denies Arbitration over a Trustee’s Usury Claim

Arbitration was denied over a trustee’s claim objection based on the lender’s violation of state usury laws.

Even if Ineligible for Chapter 13, Ninth Circuit Says the Debtor Can Still Dismiss

In a split decision, the Ninth Circuit majority held that a chapter 13 debtor has the right to dismiss under Section 1307(b) before the bankruptcy court decides whether the filing was in good faith.