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Discharge/Dischargeability

Surety Bonds Aren’t Executory Contract and Can’t Be Assumed, District Judge Says

An irrevocable surety bond isn’t executory because it gives the bonding company no further obligations to the debtor.

5th Circuit
Louisiana

The Wealth Gap and Student Loans

Nov 2021

Bankruptcy Code
523(a)(8)
Topic Tags
Consumer Bankruptcy
Consumer Debt
Discharge/Dischargeability

Objections to Priority Claims May Follow Confirmation of a Chapter 13 Plan

Confirming a chapter 13 plan on the assumption that a claim was entitled to priority didn’t bar the debtors from later objecting to the priority of the claim.

7th Circuit
Wisconsin
Wisconsin Eastern District

Time Limits for Effecting Service of Process Can Be Flexible, Eleventh Circuit Says

Under unusual circumstances, a two-year delay in completing service of process was not fatal in the Eleventh Circuit.

11th Circuit

Circuits Split on Whether Debtors Can Cure Chapter 13 Plan Arrearages After Five Years

Nov 2021

Bankruptcy Code
1307
1328
1329
Topic Tags
Practice and Procedure
Consumer Bankruptcy
Discharge/Dischargeability

Good Faith Is No Defense to an Allegedly Willful Stay Violation, Third Circuit Says

Lack of authority on point is no defense to a willful violation of the automatic stay, according to the Third Circuit.

3rd Circuit

To amend title 11 of the United States Code to make debts for student loans dischargeable.

Tuesday, July 20, 2021
Article Tags
Legislation
Consumer Bankruptcy
Consumer Debt
Discharge/Dischargeability
Full bill text.
Friday, September 10, 2021
Article Tags
Consumer Debt
Discharge/Dischargeability
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Civil Penalties for Defrauding Consumers Weren’t Discharged Under Section 1141(d)(6)(A)

Reversing the bankruptcy court, a district judge in New York held that a civil penalty wasn’t discharged even though the fraud wasn’t committed against the government.

2nd Circuit
New York
New York Southern District

Discharge Cuts Off Future Liability on a Guaranty, Some Courts Hold on a Split

The ‘conduct’ test in the Seventh Circuit, not the ‘accrual test,’ determines when a claim arose and whether it was discharged.

7th Circuit
Wisconsin
Wisconsin Eastern District
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