8th Circuit: Debtors May Not Claim Exemption For Claim Related To Personal Injury

ST. LOUIS - A panel of the Eighth Circuit U.S. Court of Appeals on July 12 affirmed a bankruptcy court's decision and said that based on precedent, a debtor couple could not claim an exemption for an unliquidated personal injury claim (Abdullah Abdul Rahim, et al. v. John V. LaBarge Jr. $(In Re:...

5th Circuit Reverses Ruling; Debtor Has Valid Claim For Promissory Estoppel

NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on July 15 partially reversed and partially affirmed a district court decision, ruling that a debtor who was foreclosed upon by her lender had stated a plausible claim for promissory estoppel even though she did not state a claim for declaratory...

9th Circuit Reverses, Remands; Creditor Couple Not Allowed To File Adversary Case

SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals on July 25 vacated and remanded a bankruptcy case, ruling that a creditor couple should not have been permitted to file an adversary complaint objecting to the discharge of the bankruptcy because the couple failed to explain why they...

7th Circuit Reverses; Debtor's Former Wife Not Entitled To Annuity Payments

CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on Aug. 2 reversed and remanded a case, holding that the claim made against a bankruptcy estate by the debtor's former wife was incorrectly granted by the bankruptcy court (In Re: Gary E. Peel, No. 13-1547, Chapter 7, 7th Cir.; 2013 U...

3rd Circuit: Debtor's Case Against Trustee 'Frivolous'; Sanctions Award Upheld

PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on Aug. 8 affirmed a bankruptcy court's award of sanctions to a trustee and dismissed a debtor's lawsuit against him on the ground that it was frivolous (In Re: Syed M. Hussain, No. 13-1278, Chapter 7, 3rd Cir.; 2013 U.S. App....

Federal Judge: Debtor's Loan Appeal Lacks Merit; Right To Trial Still Stands

PHILADELPHIA - A federal judge in Pennsylvania on Aug. 7 ruled that a debtor's appeal regarding the dischargeability of his medical student loans lacked merit and said that nothing deprived him of a right to a jury trial (D. Erik Von Kiel v. Department of Health and Human Services $(In Re: D. Erik...

5th Circuit Rules Debtor's Appeal 'Frivolous,' Says Case Lacked Merit

NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on Aug. 13 dismissed a debtor's appeal as "frivolous" on grounds that her case lacked merit because it was filed in an attempt to avoid foreclosure on her home (Audrey Coleman v. Roy Williams Jr., No. 13-10165, Chapter 13...

9th Circuit: Debtor's Actions 'Egregious'; Dismissal Proper For Abuse Of Process

SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals on Aug. 15 affirmed a bankruptcy court's ruling that a Chapter 13 debtor's case was dismissed because she abused the process by repeatedly filing petitions and not completing the plans and used the bankruptcy process in an attempt...

Debtor Seeks High Court Reversal, Says Exempt Property May Not Be Surcharged

WASHINGTON, D.C. - A Chapter 7 debtor whose case is pending before the U.S. Supreme Court filed a brief, which was made available on Sept. 3, arguing that the high court should reverse and remand a ruling by the Ninth Circuit U.S. Court of Appeals on grounds that the punishments Congress has authorized...

2nd Circuit: Creditor's Claim For Nondischargeability Is 'Meritless'

NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on Sept. 17 affirmed a bankruptcy court's decision that a creditor's fraud claim against a debtor was dischargeable because the creditor's argument for dischargeability was "meritless" (David Giminiani v. Michael Cesar...

Federal Judge: Debtor's Tax Penalties Not Discharged With Chapter 7 Case

DENVER - A federal judge in Colorado reversed a bankruptcy court's ruling on Sept. 23, which had determined that a debtor's tax penalties assessed by the IRS were discharged when his Chapter 7 bankruptcy was discharged (Peter George Martin v. The United States of America $(In Re: Peter George...

3rd Circuit: Allegations Of Bankruptcy Judge's Conflict Of Interest 'Unsupported'

PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on Sept. 24 ruled that a debtor couple's allegations that a bankruptcy judge should be recused for having a conflict of interest were "entirely unsupported" (In Re: Jan Marasek, et al., 13-3328, Chapter 7, 3rd Cir,; 2013...

11th Circuit: Trustee 'Bound' By Decision Confirming Chapter 13 Bankruptcy Plan

ATLANTA - A panel of the 11th Circuit U.S. Court of Appeals on Sept. 26 affirmed a bankruptcy court's ruling that a Chapter 13 trustee could not file an adversary proceeding objection to a creditor's claim after recommending approval of the bankruptcy plan which included that claim in the first...

3rd Circuit Partially Reverses Debtors' Claims Of Fair Debt Collection Violations

PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on Oct. 7 partially affirmed and partially reversed a district court's decision regarding a debtor couple's claims for violations under the Fair Debt Collection Practices Act (FDCPA), ruling that a credit card agency failed to...

5th Circuit Affirms: Debtor's Homestead Exemption Was Attempt To Defraud Creditors

NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on Oct. 14 affirmed a bankruptcy court's ruling that a debtor acted with intent to defraud his creditors when he claimed an unlimited homestead exemption on a property he owned in Texas when it was purchased with money borrowed against...

Panel: Consumer's Debt Collection Law Claims Property Of Trustee

CINCINNATI - A federal district court judge did not err in dismissing a consumer's Fair Debt Collection Practices Act (FDCPA) lawsuit against a debt collector because the consumer's claims were actually the property of his bankruptcy trustee, not him, a Sixth Circuit U.S. Court of Appeals panel...

8th Circuit: Decision To Revoke Chapter 7 Discharge Was Proper Based On Fraud

ST. LOUIS - A panel of the Eighth Circuit U.S. Court of Appeals on Oct. 29 affirmed a ruling by a bankruptcy court that revoked a debtor couple's Chapter 7 discharge on grounds that evidence revealed that the couple retained an interest in property that they failed to report to the trustee (Edward...

6th Circuit Affirms Ruling; Chapter 7 Debtor Lacked Standing To File Action

CINCINNATI - A panel of the Sixth Circuit U.S. Court of Appeals on Nov. 1 affirmed a bankruptcy court's ruling that a Chapter 7 debtor lacked standing to institute an adversary action in her bankruptcy because she was not "a party in interest" as defined in the Bankruptcy Code (Rafia Nafees...

9th Circuit: District Court's Bankruptcy Fraud Ruling Was Proper

SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals on Nov. 7 affirmed a district court's finding that a man had committed bankruptcy fraud as part of a business scheme to avoid debts related to losses he incurred speculating on the cattle futures market (The United States of America...

6th Circuit Reverses; Debtor Did Not Properly Notify Creditor Of Bankruptcy

CINCINNATI - A panel of the Sixth Circuit U.S. Court of Appeals on Nov. 8 reversed and remanded a case, determining that a creditor had a valid claim against a debtor who failed to properly notify her of the original bankruptcy filing, which eventually was discharged (Stephanie Lampe v. Kirk Kash, No...

7th Circuit Finds Convictions Of 3 People For Bankruptcy, Mortgage Fraud Proper

CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on Dec. 16 affirmed a district court's ruling that the convictions of three people who ran a fraud scheme involving residential mortgages and bankruptcies were appropriate given all the evidence (United States of America v. Charles White...

2nd Circuit Remands Trustee Lawsuit For Reasoning On Prejudgment Interest Award

NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on Jan. 7 partially affirmed and partially remanded a case in which a Chapter 7 bankruptcy trustee filed an adversary action for the recovery of fraudulent transfers, ruling that a district court needed to articulate its reasoning for granting...

Validity Of Surcharge On Debtor's Home Debated At U.S. Supreme Court

WASHINGTON, D.C. - The U.S. Supreme Court heard oral arguments Jan. 13 in a case in which a Chapter 7 debtor argues that the Ninth Circuit U.S. Court of Appeals wrongly affirmed a ruling in which a bankruptcy court levied a surcharge on his residential property as punishment to "deter improper conduct"...

U.S. High Court Hears Debate On Jurisdiction, Authority Of Bankruptcy Judges

WASHINGTON, D.C. - The U.S. Supreme Court on Jan. 14 heard oral arguments in a case dealing with whether Article III of the U.S. Constitution permits the exercise of the judicial power of the United States by bankruptcy courts on the basis of litigant consent and whether a bankruptcy court may submit...

7th Circuit: Debtor's Privacy Not Violated By Public Announcement Of Bankruptcy

CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on Jan. 22 reversed and remanded a district court ruling, concluding that the governor of Wisconsin and his then-spokesman had qualified immunity when they disclosed that the reason the governor rescinded a job offer to a prospective candidate...