Consumer Bankruptcy

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.

Court :

9th Circuit

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.

Court :

9th Circuit

Sixth Circuit Restricts Ability to Surrender Collateral and Modify a Chapter 13 Plan

Once a chapter 13 plan is confirmed, a debtor in the Sixth Circuit may not surrender collateral and treat the deficiency as an unsecured claim.

Court :

6th Circuit

Tennessee

Tennessee Middle District

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.

Court :

9th Circuit

California

California Eastern District

Comparative Fault Doesn’t Require Reduced Attorneys’ Fees for Discharge Violations

Seventh Circuit holds that comparative fault requires a reduction in compensatory damages for a discharge violation but not for a debtor’s attorneys’ fees.

Court :

7th Circuit