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1st Circuit

First Circuit Splits with the Ninth over Good Faith Defense to Discharge Violation

Seven weeks apart, two circuits reach diametrically different conclusions about good faith as a defense to an intentional act that violates the discharge injunction.
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Puerto Rico Judge Has a Third Answer to the PROMESA Automatic Stay Question

On tough automatic stay cases, let the PROMESA judge decide.

Expense Reimbursements Are Included in Calculating Current Monthly Income

Income is included in calculating CMI, even if it’s not ‘stable and regular.’

District Judges Starkly Disagree on the Scope of the PROMESA Automatic Stay

Can plaintiffs sue Puerto Rico government officials in their individual capacities? Two district judges disagree.

Puerto Rico’s District Courts Differ on the Automatic Stay Under PROMESA

Caselaw is evolving on the applicability of the automatic stay to ordinary litigation against Puerto Rico and its governmental officials.

Fully Encumbered Property Is Not a Debtor’s Asset, First Circuit Says

Perplexing opinion may only apply to the status of assets before bankruptcy.
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Filing Date Controls Whether Residential Mortgages Can Be Modified

Courts are split on two issues regarding the antimodification provisions in Sections 1123(b)(5) and 1322(b)(2).

Section 108(a) Time Extension Held Not Applicable to Chapter 13 Debtors

Courts split on whether Section 108(a) extension of statutes of limitations applies to chapter 13 debtors.

No Quick Exit for Any Creditors from Puerto Rico’s Financial Mess, Judge Says

Judge refuses to issue declaratory judgments about Puerto Rico’s use of tax revenues.

Asset Sale Appeals Are Moot Even if There Is a Jevic Violation, First Circuit Says

Waiving the automatic stay and immediately closing a sale does not make Section 363(m) inapplicable.
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