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ABI Journal

Discharge/Dischargeability

Student Loans Discharged in Part, Even Though Debtor Wasn’t Destitute

A bankruptcy judge can afford little relief from student loans, even for sympathetic debtors who try hard to repay their debts.

Thursday, November 14, 2019
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Courts Ignore Farrey to Achieve an Equitable Result in a Matrimonial Bankruptcy

In matrimonial cases, courts find creative reasons for not avoiding a lien that impairs an exemption.

Case Shows How Taggart Tilted the Scale Toward Lenders Accused of Contempt

An ambiguous demand letter violated the discharge injunction, but the lender was not held in contempt in light of Taggart.

If It’s Consensual, a Plan Can Discharge a Nondischargeable Debt

A debt that’s been paid in full under state law is discharged even if the debtor never receives a discharge, Judge Klein says.

BAP Opinion Shows How Taggart Changes the Outcome of Contempt Motions

Ninth Circuit BAP says that payment of a secured claim in full automatically terminates the underlying lien, even if the plan doesn’t say so explicitly.

Discharge Is Enforceable Only in the Issuing District, Fifth Circuit Says

Fifth Circuit bars nationwide class actions to enforce the discharge injunction. However, the appeals court ruled that private student loans are dischargeable.

Fifth Circuit Still Precludes Arbitration of ‘Core’ Bankruptcy Issues

Fifth Circuit panel does not interpret recent Supreme Court authority as overruling circuit opinions allowing bankruptcy courts to disregard arbitration agreements.