Consumer Bankruptcy

Large Medical Bills Held Not to Be ‘Consumer’ Debts

Courts are split on whether large medical bills are consumer debts that invoke the means test and can bar relief in chapter 7.
8th Circuit Feb 7, 2020

Eighth Circuit Has No Per Se Rule Disallowing Exemptions for IRAs in Divorce

Eighth Circuit may have rejected blanket disallowance of exemptions for retirement accounts transferred in divorce.

May a Chapter 13 Plan Pay a Larger Percentage Toward Student Loans?

Since Congress has made student loans virtually nondischargeable, why can’t a chapter 13 plan discriminate in favor of paying more toward student loans?

Section 362(k)(1) Sanctions Apply to Automatic Stay Violation Continuing After Discharge

Almost $35,000 in actual and punitive damages was imposed on a judgment creditor and its collection law firm for failing to vacate a garnishment following notice of bankruptcy and discharge.
1st Circuit Feb 3, 2020

First Circuit Reverses the BAP for Fact-Finding on Appeal

First Circuit requires detailed fact-finding by the bankruptcy court on the credibility of witnesses and the elements of nondischargeability for false representations.

Lender and Servicer Held Liable for Making False Claim for Real Estate Taxes

Judge Rodriguez holds servicer and lender liable under Rule 3002.1 and the FDCPA for making a claim for unpaid real estate taxes that had been paid.
1st Circuit Jan 28, 2020

Stay Violation Order Is Final Even Before Attorneys’ Fees Are Awarded, Circuit Says

First Circuit rules that an order finding a stay violation must be appealed before the bankruptcy court grants an award of attorneys’ fees.

Courts Deeply Split on Social Security Benefits in the Chapter 13 ‘Abuse’ Test

Michigan judges disagree about the court’s ability to consider Social Security benefits in deciding whether a chapter plan was proposed in good faith.