Default Judgments Are (Sometimes) Nondischargeable Under Issue Preclusion
If the parties litigate but the defendant eventually defaults, the default judgment can result in nondischargeability via issue preclusion, Eleventh Circuit holds.
Second Circuit Defines a Prohibited Double Recovery on Fraudulent Transfers
There is no prohibited double recovery from multiple defendants, the appeals courts says, until the trustee has recovered cash equaling the value of the fraudulently transferred property.
A ‘Plausible’ Claim for a Discharge Violation Is No Longer Sufficient after Taggart
An Alabama case shows how Taggart heightened the pleading standards for a complaint alleging a violation of the discharge injunction.
Different Rules Govern When Claims Accrue By or Against an Estate
Like physics, bankruptcy searches for a unified theory to explain claims by and against the estate.
Overpaying a DSO Doesn’t Result in a Nondischargeable Debt, Seventh Circuit Holds
On an issue dividing the courts, the Seventh Circuit rules that an obligation to repay a domestic support obligation is a dischargeable debt, not a nondischargeable DSO.
Seventh Circuit Solidifies a Circuit Split on the Automatic Stay
Disagreeing with the Tenth and D.C. Circuits and siding with four other circuits, the Seventh Circuit rules that passively holding estate property violates the automatic stay.
Failure to Petition the Circuit Court for a Direct Appeal Requires Dismissal
Overruling its own precedent, the Seventh Circuit dismissed an appeal when the appellant had not filed a motion in the appeals court for permission to undertake a direct appeal, even though the bankruptcy court had certified the question to the circuit.