Consumer Bankruptcy

Sometimes it is better for the trustee not to object to an “arguably” inapplicable claim of exemption. That’s one of the takeaways from the Sixth Circuit’s recent decision in Biondo v. Gold, Lange, Majoros & Smalarz P.C. (In re Biondo) [1].

In Biondo, a chapter 7 debtor listed an “auto accident” claim in her schedules with an unknown value. She sought an exemption for the claim under 11 U.S.C. § 522(d)(11)(D). The trustee did not raise a timely objection to the debtor’s exemption. Rather, the trustee pursued the claim for the benefit of the estate. The trustee was able to obtain two settlements related to the claim: The first settlement covered the debtor’s “medical expenses, attorney’s fees, ‘lost wages,’ and all ‘other forms of economic or non-economic loss.’” The second settlement simply covered the debtor’s “pain and suffering.” [2]

By Bradley D. Pack, Aaron M. Kaufman and Christina Sanfelippo Debtor Must Pay Default Rate Interest to Cure Defaulted Debt; Takes Deep Dive into Difficult Issue While plenty has been written on the issue of what a debtor must do to “cure” and reinstate an accelerated

As long as the student loan is owing to the government, the Fifth Circuit holds that the government bar date applies even when the servicer is a private company.

Two judges in Georgia say that personal property is not exempt even if the purchase was traceable to Social Security benefits.

The Second Circuit split with the First Circuit, which had permitted nationwide class actions because the discharge injunction is statutory.

Splitting with the Tenth Circuit, the Ninth Circuit holds that chapter 13 debtors lose post-petition appreciation in a home if the case converts to chapter 7.

President’s Column Having served as ABI President for just over three months, while it is good to remain focused on advancing the organization, I want to take some time to reflect on life and family. Life takes unexpected turns. The recent passing of Bill Brandt of

Rather than invoking the best interests and disposable income tests for plan confirmation, the Eleventh Circuit may have departed from the statute by ruling that the ‘ability to pay’ gives postpetition tort claims to creditors in chapter 13.

Untangling the Sub V Eligibility Criteria for Individual Debtors By Kellie Fisher and Adam R. Prescott Editor’s Note: ABI’s Subchapter V Task Force, launched in April, will study practitioners’ experiences with the three-year-old law, culminating in a final report to be