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8th Circuit

In the More Lenient Eighth Circuit, Debtors Knock Off $130,000 in Student Loans

Judge Collins discharges all but $23,900 among nine student loans totaling $154,000.

Equitable Factors Result in Disallowance of Default Interest on a Fully Secured Claim

Caselaw on disallowance of default interest is “murky,” Chief Judge Norton says.

A Judgment Lien on Entireties Property Is Avoidable in Missouri, Eighth Circuit Says

A judicial lien impairing an exemption is avoidable in some states under Section 522(f), but not in others.
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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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