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Alabama

Alabama Judge Rejects Second Circuit’s Bankruptcy Act Opinion in Straus-Duparquet

There is no implied assumption of an executory employment contract under the Bankruptcy Code.

Bar Date Not Extended Three Days for Service by Mail

As bar dates are fixed by the meeting of creditors, not by date of mailing, Rule 9006(f) isn’t applicable.

Creditors Get Personal Injury Proceeds Although ‘Commitment Period’ Expired

Voluntary five-year commitment period sticks the debtor with its burdens, judge holds.

Judge Reverses Course and Allows Reclassification of Deficiency Claim

Chapter 13 debtor permitted to surrender collateral and reclassify deficiency as unsecured.

FDCPA’s One-Year Statute of Limitations Strictly Enforced

FDCPA suit must begin within one year of the filing of a time-barred claim.

Magistrate Masterfully Describes Permissible Claims for Violating Discharge Injunction

Contempt and FDCPA claims can coexist in one suit in district court.

Alabama Judge Takes Majority View on Automatic Stay Termination for Repeat Filers

For serial filers, automatic stay held to terminate only on the debtor’s property.

Calculation of Punitive Damages Did Not Consider Amount of Attorneys’ Fees

$50,000 in punitive damages held excessive when actual damages were $1,500.

Using Untrained Personnel Is No Defense Against Willful Stay Violation

Simple mistake mushrooms into $50,000 in punitive damages for stay violation.

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