Must a Debtor Be Destitute Before Discharging Student Loans?
Unemployed for 16 months, surviving on food stamps, and living rent-free enabled a debtor to discharge student loans.
PACA Doesn’t Give Rise to Denial of Discharge for Defalcation, Chicago Judge Says
A PACA trust lacks the hallmarks of a trust, so a failure to pay a produce supplier doesn’t give rise to a nondischargeable debt for defalcation while acting in a fiduciary capacity, Judge Goldgar says.
Even a $3 Million Claim for Severance Is Exempt in Illinois as Wages, Easterbrook Says
Pleas to injustice and unfairness failed to persuade the Seventh Circuit to depart from a state law exemption for wages.
Seventh Circuit Limits Punitive Damages to Total Compensatory Damages of $582,000
Despite atrocious mortgage servicing, the circuit court cut a jury’s $3 million award of punitive damages to $582,000.
Medical Bills Are Held to Be Consumer Debts, Invoking the Means Test
Someone forced into bankruptcy on account of medical bills will also be forced into chapter 13.
Seventh Circuit Holds that Parking Tickets and Fines Are Chapter 13 ‘Admin’ Expenses
Appeals courts won’t allow bankruptcy to shield debtors from paying parking tickets and fines incurred in the course of a chapter 13 case.
Debtors’ Attorneys Are Paid in Chapter 13 Before Secured Creditors
Indiana bankruptcy and district judges rule that secured lenders are only entitled to ‘adequate protection’ until the debtor’s counsel’s allowed fees have been paid in full.
Section 505(a) Doesn’t Confer Jurisdiction to Determine Amount of a Tax, Circuit Says
Seventh Circuit splits with other circuits on basis for jurisdiction to determine the amount of a tax.
Seventh Circuit Opinion on Contempt Raises Questions under Taggart
On an appeal involving contempt of the discharge injunction, would the circuit court have reached a different conclusion by employing the standard under Taggart?
A Judgment Lien on Entireties Property Isn’t Avoidable in Illinois, Seventh Circuit Says
A judicial lien impairing a homestead exemption is avoidable in some states under Section 522(f), but not in others.