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1st Circuit

Chapter 13 Can Cure a Home Mortgage Default Even After a Foreclosure Auction

Section 1322(c) allows a debtor to cure a mortgage default so long as the foreclosure deed was not recorded before bankruptcy.

Chapter 7 Trustee Is Paid in a Case Converted to Chapter 13

Courts split on allowing compensation to a chapter 7 trustee when the case is converted to chapter 13 before distributions were made.

Avoiding Powers Under PROMESA May Be Applied Retroactively

Defining collateral by reference in a UCC-1 is held invalid in Puerto Rico’s bankruptcy.

First Circuit Gives Puerto Rico Bondholders a Second Bite at the Apple

Puerto Rico’s toll road bonds don’t have statutory liens, circuit court rules.
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Penalty for Early Withdrawal from a Retirement Account Is Not a Priority Tax Claim

Two Boston judges agree: The 10% penalty for early withdrawals from a retirement account doesn’t have priority under Section 508(a)(8).

Constitutionality of the Puerto Rico Oversight Board Upheld in District Court

PROMESA’s authority is in the Territories Clause of the Constitution, District Judge Swain says.

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.

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