Discharge/Dischargeability

Eleventh Circuit Reads Husky Narrowly, Perhaps Too Narrowly

Reading Husky narrowly, the Eleventh Circuit requires that fraud occur before a debt arises to make the debt nondischargeable under Section 523(a)(2)(A).

Repaying Salary After Arrest Isn’t Compensation for Loss and Isn’t Dischargeable

An obligation can be penal in nature, and thus nondischargeable, even though it’s measured by pecuniary loss.

Surety Bonds Aren’t Executory Contracts and Can’t Be Assumed Even if They Are

Insurance companies must nail down the treatment of performance bonds before plan confirmation.

Benchnotes November 2020

Nov 2020

Student Loan Servicer Sanctioned $378,000 for Civil Contempt by New York Judge

Bankruptcy Judge Martin Glenn imposed civil contempt sanctions for ignoring court orders over five years.

Not All Student Loans Are Nondischargeable, Tenth Circuit Holds

Tenth Circuit joins the Fifth Circuit by holding that student loans are not ‘educational benefits’ under Section 523(a)(8)(A)(ii).

Claims Discharged in Chapter 7 Revive If the Case Is Converted to Chapter 13

Courts are split over the effect on claims discharged in chapter 7 if the debtor converts the case to chapter 13.

The Supreme Court, Dischargeability and Actual Fraud

Parental Support Isn’t Counted on Discharge of Student Loans, Judge Kendig Says

Private charity is not considered to be part of a debtor’s income under the first part of the Brunner test.