New York Southern District

On Student Loan Discharge, District Judge Requires Responses to Unasserted Defenses

New York district judge requires a student loan debtor to prove the reasonableness of living expenses when the lender never objected.

Texas Judge Disagrees with Second Circuit on Sanctions for Violating Rule 3002.1

Bankruptcy Judge Eduardo Rodriguez explained why the Second Circuit was wrong in ruling that violators of Rule 3002.1 are only liable for compensatory damages.

Student Loan Servicer Sanctioned $378,000 for Civil Contempt by New York Judge

Bankruptcy Judge Martin Glenn imposed civil contempt sanctions for ignoring court orders over five years.

Courts Interpret Brunner Too Harshly, Bankruptcy Judge Cecelia Morris Says

A debtor with a law degree but only $37,500 in gross annual income was permitted to discharge more than $220,000 in student loans.

Religious Contributions Not Considered in Dischargeability of Student Loans

First Amendment doesn’t compel deduction of religious contributions in finding an ‘undue hardship’ justifying the discharge of student loans.

Freezing a Chapter 7 Debtor’s Bank Account Doesn’t Violate the Automatic Stay

SDNY opinion seems to mean that a bank may freeze a debtor’s entire bank account at filing, without violating the automatic stay.

The Emily Litella Principle Governs the Withdrawal of Proofs of Claim

Withdrawing a proof of claim will not divest the bankruptcy court of jurisdiction to try an avoidance action without a jury, Judge Bernstein says.