Joining the Tenth Circuit, the Ninth Circuit also has held that chapter 13 trustees are not paid their fees when cases are dismissed before confirmation. The identical issue was argued on February 15 before the Second Circuit.
In short order, we’ll have either unanimity or a split of circuits. A split will give rise to an issue worthy of a grant of certiorari by the Supreme Court.
Notably, the Ninth Circuit’s opinion on June 12 adopted reasoning in an amicus brief filed in support of the debtor by the National Consumer Bankruptcy Rights Center and National Association of Consumer Bankruptcy Attorneys.
A decision from Illinois highlights two flaws in the U.S. health care system: (1) Even with health insurance, medical bills can force someone into bankruptcy; and (2) if medical bills are “consumer”.....
The Seventh Circuit slammed the door on another theory used by bankrupt citizens of Chicago to avoid paying traffic tickets and parking fines incurred while in chapter 13.
In March, the Chicago-based.....
On an issue where the courts are divided, bankruptcy and district judges in Indianapolis allow a chapter 13 debtor’s attorney to be paid in full before secured creditors receive more than adequate.....
A September 20 opinion from the Seventh Circuit reads like a suspense novel: For nine pages, Circuit Judge Frank H. Easterbrook sounded as though he was rejecting a test for “related to” jurisdiction.....
Generally, a default judgment is not grounds for invoking collateral estoppel because the underlying issue was not actually litigated, the Second Circuit said.
However, the Manhattan-based appeals.....
Without citing the Taggart decision by the Supreme Court in June, the Seventh Circuit reversed the lower courts and held a creditor in contempt of the discharge injunction.
In Taggart v. Lorenzen, 139.....
Most of us would assume that a home owned by a married couple as tenants by the entireties would be exempt in all respects in all states. But no, that is not true in Illinois and states with similar.....
Second Circuit Defines a Prohibited Double Recovery on Fraudulent Transfers
Affirming Bankruptcy Judge Alan S Trust, the Second Circuit explained when a trustee is prohibited from making a double.....
Overpaying a D S O Doesn’t Result in a Nondischargeable Debt, Seventh Circuit Holds
The Seventh Circuit narrowly interpreted domestic support obligation in direct appeals from rulings by two.....
If contempt proceedings were enjoined by the automatic stay, the non-bankruptcy court cannot proceed even if the contempt sanctions were not to be imposed until after conclusion of the bankruptcy, the.....