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8th Circuit

Chapter 11 Super Priority Claims Retain Exalted Status After Conversion to Chapter 7

Super priority claims are not created under Section 503(b) and therefore don’t take a back seat to chapter 7 administrative claims.
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Bankruptcy Won’t Lift Suspension of a Driver’s License for Failure to Pay Traffic Fines

The government doesn’t violate the automatic stay by refusing to reinstate a driver’s license suspended for failure to pay traffic fines, Judge Surratt-States says.

BAP Holds that an IRA from a Marital Property Settlement Is Not Exempt

BAP expands Clark v. Rameker to cover IRAs transferred in a divorce proceeding.
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A Destitute Debtor Succeeds in Discharging Student Loans

Holding two advanced degrees didn’t bar the discharge of student loans.
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Non-Bankrupt Nonprofit Entities Are Not Subject to Substantive Consolidation

Eighth Circuit insulates parishes and church schools from substantive consolidation.
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Bankruptcy Court Has Constitutional Power to Sanction, Eighth Circuit Rules

Bankruptcy courts have constitutional power to sanction for actions occurring during administration of a bankruptcy case.
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Claims Under Section 544(b) Are Estate Property and Can Be Sold or Assigned, Judge Says

Courts are split on the status of inherited claims as estate property.
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Eighth Circuit Broadly Draws the Line to Identify ‘Unknown’ Claims that Are Discharged

Eighth Circuit sides with the Third: ‘Reasonably ascertainable,’ not ‘reasonably foreseeable,’ determines which creditors are entitled to actual notice.
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Third-Party Releases Are Permissible in Theory, Minneapolis Judge Says

Judge issues a tongue-lashing for a three-year reorganization that rewards lawyers but pays nothing so far to sexual abuse claimants.
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Courts Can’t Sanction Debt Collectors for Filing Stale Claims after Midland Funding

The Code or rules must change to bar debt collectors from filing stale claims, Judge Dow says.