9th Circuit

No Fees for a Chapter 13 Trustee in a Case Dismissed Before Confirmation

Trustees in chapter 12 fare better than chapter 13 trustees if a case is dismissed before confirmation.

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First Opinion on the SBRA Permits Conversion of an Existing Chapter 11 Case

Bankruptcy Judge Scott Clarkson of Santa Ana, Calif., issued the first reported decision on the new small business reorganization law that became effective on February 19.

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9th Circuit

California

California Central District

Section 362(k)(1) Sanctions Apply to Automatic Stay Violation Continuing After Discharge

Almost $35,000 in actual and punitive damages was imposed on a judgment creditor and its collection law firm for failing to vacate a garnishment following notice of bankruptcy and discharge.

Court :

9th Circuit

California

California Eastern District

Chapter 13 Debtor Keeps Postpetition Appreciation in Nonexempt Property, BAP Says

Courts are split on whether creditors in chapter 13 are entitled to the postpetition appreciation in a debtor’s property.

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9th Circuit

Debt of $46,000 Discharged Despite a Flagrantly False Loan Application

Even though the debtor defaulted, Judge Christopher Klein held a trial and ruled that the lender had not relied on a false loan application.

Court :

9th Circuit

California

California Eastern District

Committee Members Must Disclose the True Extent of Their Claims, Judge Says

The claim of a member of a creditors’ committee was subordinated because she evaded disclosure that her claims would consume the entire estate.

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9th Circuit

California

California Central District

Student Loans Discharged in Part, Even Though Debtor Wasn’t Destitute

A bankruptcy judge can afford little relief from student loans, even for sympathetic debtors who try hard to repay their debts.

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9th Circuit

Oregon

A Motion to Dismiss an Involuntary Petition Only Postpones Filing a Creditor List

Ninth Circuit BAP balances the need for quickly dealing with an involuntary petition against the petitioners’ right to discovery and a list of creditors.

Court :

9th Circuit