Circuit Panel Urges En Banc Reconsideration of the Vanishing Homestead Exemption
A panel of the Ninth Circuit implicitly urged en banc reversal of two decisions holding that a homestead exemption is lost if the proceeds are not reinvested within the time required by state law, even if the exemption was valid on the filing date.
Ninth Circuit Affirms the BAP on the Outer Limits of the Discharge Injunction
Deducting a discharged loan to a child from her inheritance didn’t violate the discharge injunction.
No Duty to Release an Attachment After Fulton, Ninth Circuit BAP Says
The BAP decision may have a hint that failure to stop proceedings after bankruptcy can be an automatic stay violation, even after Fulton.
Merely ‘Technical’ Stay Violations Don’t Obviate Section 362(k) Sanctions, BAP Says
Even when the debtors are not parties to the suit, the stay is violated when a creditor pursues an action to collect a debt owing by the debtors, so says the Ninth Circuit BAP.
State Probate Law Determines What Is or Isn’t Estate Property
Unlike other states, creditors can attach 25% of a judgment debtor’s interest in a spendthrift trust in California.
Status Conferences to Continue Prepetition State Court Suits Don’t Violate the Stay
The Ninth Circuit B.A.P. says that the automatic stay does not require dismissal of prepetition lawsuits against debtors.
Disclosing a Lawsuit Only in the SOFA Won’t Result in Abandonment, Circuit Says
Disclosing a lawsuit in the SOFA and discussing the suit with the trustee was no substitute for listing the suit among a debtor’s assets, the Ninth Circuit held.
Bankruptcy Court Doesn’t Have Exclusive Jurisdiction over Fraudulent Transfer Suits
The Nevada Supreme Court correctly unpacked the confusing notions of bankruptcy jurisdiction and the division of authority between district and bankruptcy courts.
Another Circuit Holds that Dismissal Is Mandatory Under Section 1307(b)
The Ninth Circuit leaves the door open for a bankruptcy court to sanction a misbehaving chapter 13 debtor before granting the debtor’s motion for voluntary dismissal.
Debtors Can’t Easily Glom Uncashed Distribution Checks
Just because a creditor doesn’t cash a distribution check doesn’t mean it’s abandoned and reverts to the debtor.