Chapter 13 Plan that Cures Arrears Pays Interest on Unpaid Principal, Judge Faris Says
Interest, if any, due on arrears cured under a plan derives from the loan documents and state law.
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Debtor Can’t Avoid and Preserve a Lien for Tax Penalties for the Debtor’s Benefit
A trustee can avoid and preserve a tax lien for the benefit of unsecured creditors, but a debtor can’t if the debtor hasn’t paid the taxes, the Ninth Circuit says.
Expanding on Midland Funding, a BAP Disallows Fee-Shifting for Time-Barred Claims
A state statute imposing sanctions for groundless claims is procedural and preempted by federal law with regard to fee-shifting.
Earned Income Tax Credit Held Exempt by the Ninth Circuit BAP
The EITC and the ACTC are both exempt in states with broadly defined “public assistance,” the Ninth Circuit BAP says.
Ninth Circuit Takes a Hard Line on What’s an Equivalent Tax Return for Dischargeability
Interpreting the hanging paragraph in Section 523(a), the Ninth Circuit sticks to the Beard test in deciding whether something is close enough to a tax return to justify discharging a tax debt.
Circuit Panel Urges En Banc Reconsideration of the Vanishing Homestead Exemption
A panel of the Ninth Circuit implicitly urged en banc reversal of two decisions holding that a homestead exemption is lost if the proceeds are not reinvested within the time required by state law, even if the exemption was valid on the filing date.
Ninth Circuit Affirms the BAP on the Outer Limits of the Discharge Injunction
Deducting a discharged loan to a child from her inheritance didn’t violate the discharge injunction.
No Duty to Release an Attachment After Fulton, Ninth Circuit BAP Says
The BAP decision may have a hint that failure to stop proceedings after bankruptcy can be an automatic stay violation, even after Fulton.
BAP Rules that Tolling in Section 108(c) Does Not Apply to Notices Under Section 546(b)
In dicta, the Ninth Circuit BAP says that equitable estoppel cannot be applied against a debtor in view of the debtor’s fiduciary responsibilities.
Merely ‘Technical’ Stay Violations Don’t Obviate Section 362(k) Sanctions, BAP Says
Even when the debtors are not parties to the suit, the stay is violated when a creditor pursues an action to collect a debt owing by the debtors, so says the Ninth Circuit BAP.