Consumer Bankruptcy | ABI

Inside ABI August 2025

Bankruptcy Code

Topic Tags

Bankruptcy Litigation

Consumer Bankruptcy

A Suit Nominally Against a Debtor Does/Doesn’t Violate the Discharge Injunction

In the Tenth Circuit, there’s a workaround for courts that believe it’s not possible to modify the statutory discharge injunction.

Court :

Second Circuit Courts Narrowly View Finality of Bankruptcy Appeals

A district court in New York holds that denial of a settlement motion is not final and not appealable.

Court :

New York Eastern District

Partial Surrender of Personal Property Secured by a Cross-Collateralized Loan Under § 1325(a)(5)

Bankruptcy Code

11 U.S.C. § 506

Topic Tags

Consumer Bankruptcy

Unexpected Income Required Modification of a Chapter 13 Plan

Judge Rebecca B. Connelly allowed a debtor couple to retain enough unexpected income to pay deferred maintenance on the debtors’ home.

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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 :

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 :

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 :

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 :

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.

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