Consumer Bankruptcy

9th Circuit Apr 11, 2019

Disciplinary Sanctions Held Nondischargeable Even Though Not Paid to the State

The Ninth Circuit BAP follows Kelley, even though the panel implies that the Supreme Court tortured the language in Section 523(a)(7).
5th Circuit Apr 23, 2019

Mothers Owed Child Support Weren’t Entitled to Notice in Father’s Bankruptcy, Circuit Says

Fifth Circuit in substance says that state law overcomes the Bankruptcy Code’s broad definition of who’s a creditor entitled to notice.
Supreme Court Apr 24, 2019

Supreme Court Hears Argument on Good Faith as Defense to Discharge Violation

In Taggart v. Lorenzen, the justices sounded largely noncommittal, except for the Chief Justice, who seemed in the debtor’s camp favoring a stricter standard for contempt of the discharge injunction.
3rd Circuit New Jersey Apr 16, 2019

Bankruptcy Notice to a Creditor Represented by Counsel in State Court Is Adequate

Conversely, giving notice to a creditor’s state-court counsel may not be adequate, New Jersey judge says.

Is a Notice of Removal Filed in Bankruptcy Court Ok? Courts Are Split

Judge in Mississippi remands a suit to state court because the notice of removal was filed with the bankruptcy clerk, not the district court clerk.

Lenders Admonished to Demand Nothing More in Plans than the Law Allows

Judge Hunt in Chicago tells debtors’ counsel to oppose inclusion of unjustifiable provisions in chapter 13 plans, even if it means contested confirmation hearings.
10th Circuit Utah Apr 10, 2019

Bifurcated Fees for Destitute Chapter 7 Debtors Approved in Utah

Copious disclosure required for post-petition payment of fees to be permissible in chapter 7.
6th Circuit Apr 5, 2019

Is the ‘Accrual Test’ for the Existence of a Claim Alive and Well after Grossman’s?

Are there two tests for the existence of a claim, one test for claims against the debtor and another test for claims by the debtor?

Sovereign Immunity Doesn’t Insulate States from Lien Stripping

For three independent reasons, Judge Taddonio rules that states are not immune from stripping down or stripping off tax liens.