Author Archives: NCBRC

City Did Not Violate Stay by Failing to Rescind Warrant

City had no obligation under the automatic stay to take affirmative action to rescind a warrant for the debtor’s arrest or to issue a letter of compliance to the state, where the City had taken no post-petition action to enforce the warrant, and the debtor was not in compliance with the court order to pay […]

Debt for Overpayment of DSO not Itself DSO

Debts based on overpayments to debtors for government welfare benefits are not non-dischargeable domestic support obligations. Dennis v. Illinois Dept. of Human Serv., Nos. 18-2899, 18-2952 (7th Cir. June 27, 2019). Chapter 13 debtor, Devan Dennis entered bankruptcy owing the Illinois Department of Human Services for overpayments under the state Child Care Assistance Program. Chapter […]

Halbert v. Illinois Dept. of Hum. Serv., Nos. 18-2899, 18-2952 (7th Cir.)

Type: AmicusDate: March 28, 2019Description: Whether debt based on overpayment of SNAP benefits is non-dischargeable domestic support obligationResult: Affirmed, June 27, 2019.

Jaras v. Equifax Inc. No. 17-15201 (9th Cir.)

Type: AmicusDate: June 17, 2019Description: Whether credit reporting agencies and information furnishing creditors violated the FCRA by failing to perform reasonable investigation.Result: Pending

7th Circuit Overrules Precedent and Dismisses Direct Appeal for Failure to File Timely Petition

Rule 8006(g) states a mandatory requirement that a party seeking direct appeal file a petition in support. Failure to do so, if properly invoked by the opposing party, is cause for dismissal. In re Wade, No. 18-2564 (7th Cir. June 14, 2019). This case came to the Seventh Circuit on certification of direct appeal by […]

Hard View of Religious Tithing (and other things) in Student Loan Discharge Case

In a bad-facts-make-bad-law situation, the Southern District of New York affirmed the denial of student loan discharge where the chapter 7 debtor sought to have his religious contributions deducted from his income, and, unfortunately, in so holding, the district court went beyond the bankruptcy court holding to add some unpleasant dicta of its own. In […]

Rooker-Feldman Bars Motion to Vacate

Where the debtor was not deprived of the opportunity to fully participate in the state court proceedings, there was no “extrinsic fraud” and his bankruptcy court challenge to the state court judgment was barred by the Rooker-Feldman doctrine. Reyes v. Kutnerian (In re Reyes), No. 18-1229 (B.A.P. 9th Cir. April 19, 2019) (unpublished).

Debtor May Not Modify to Surrender Residence after 60 Month Plan Complete

Debtors were precluded from modifying their plan to surrender their residence where the surrender was a “payment” under the plan and was beyond the sixty-month plan period. Derham-Burk v. Mrdutt (In re Mrdutt), No. 17-1256 (B.A.P. 9th Cir. May 6, 2019). When chapter 13 debtors, Christina and David Mrdutt, filed their bankruptcy petition, Wells Fargo […]

SCOTUS Adopts No Fair Ground of Doubt Standard for Discharge Order Violation

In a unanimous decision, the Supreme Court held that “a court may hold a creditor in civil contempt for violating a discharge order if there is no fair ground of doubt as to whether the order barred the credi­tor’s conduct.” Taggart v. Lorenzen, No. 18-489, 587 U. S. ___ (June 3, 2019). Chapter 7 debtor, […]

Rejection of Unexpired Lease Equals Pre-Petition Breach of Lease Agreement

Under section 365(g), rejection of an unexpired lease is treated as breach of the lease contract not termination of the lease. Therefore, the lessor’s claim against the debtors for rent based on post-petition, post-rejection occupancy of the leased property was part of the pre-petition breach and was discharged in the debtors’ chapter 7 bankruptcy. In […]