Ninth Circuit Court of Appeals Applies Narrow Interpretation to Discharge Exception for Domestic Support Obligations

wpadmin on January 27, 2014 Posted in Recent Court Decisions

Chapter 7 Bankruptcy can help debtors to reduce their debt by discharging unsecured debts. An unsecured debt is a debt that does not have an accompanying interest in property. However, certain types of unsecured debts, such as domestic support obligations and payments to former spouses, are exempt from discharge under the U.S. Bankruptcy Code. This […]

Recent Ninth Circuit Decision On Divorce Settlements and Bankruptcy

wpadmin on December 23, 2013 Posted in Recent Court Decisions

A recent decision by the Bankruptcy Appellate panel of the Ninth Circuit shows how difficult it can be for a person who files bankruptcy to discharge a domestic support obligation. Often, parties to a divorce settle on division of property, spousal support, and other items in one settlement. Later, if the party making payments seeks […]

Recent 9th Circuit Decision Reverses Precedent on Debt/Equity Recharacterization

wpadmin on October 18, 2013 Posted in Recent Court Decisions

In bankruptcy proceedings, creditors often challenge loans that were made to the debtor prior to the petition for bankruptcy and argue that the loans are equity rather than debt. This kind of challenge is called a “recharacterization challenge.” The complexity of these issues makes it important for creditors and debtors alike to understand the nature […]

3rd Circuit Allows Bankruptcy Filers to Pursue Debt Collection Action Against Creditor

wpadmin on October 11, 2013 Posted in Recent Court Decisions

Consumers who make the difficult decision to file for bankruptcy face many challenges. In some cases, one of those difficulties may be posed by aggressive debt collectors. In one New Jersey case, a collector’s letter, which contained numerous alleged defects in violation of federal debt collection laws, placed it in hot water when the 3d […]

New 9th Circuit Ruling Increases Onus on Some Chapter 13 Filers

wpadmin on September 10, 2013 Posted in Recent Court Decisions

In a noteworthy reversal of course from a 2008 decision, the 9th Circuit sitting en banc decided in In re Flores that a debtor couple’s Chapter 13 repayment plan must last at least five years, rejecting the couple’s proposed three-year plan. Even though the couple had no projected disposable income, because the couple had an […]