Another Court Holds that PACA Trusts Do Not Give Rise to Nondischargeable Debts
Violating a PACA trust does not result in ‘defalcation while acting in a fiduciary capacity’ that makes a debt nondischargeable, Bankruptcy Judge Panos says, taking sides with the Eleventh Circuit.
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College Tuition Made a Debtor Ineligible for Chapter 7
Chapter 7 can be inaccessible for a married debtor living in the same household with a nonfiling spouse who has substantial income.
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Judge Elizabeth Katz Gives Some Relief for a Debtor Ineligible to Discharge Student Loans
Massachusetts bankruptcy judge requires flexibility from both the government and the debtor who is saddled with huge student loans.
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On a Circuit Split, Sovereign Immunity Wasn’t Waived for Indian Tribes, Judge Says
Section 106 wasn’t sufficiently explicit to waive sovereign immunity for Indian tribes, Judge Frank Bailey said in siding with the Sixth Circuit and differing with the Ninth Circuit.
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Boston Judge Suggests Procedures for Removing Uncertainty from Section 365(p)
Judge Hoffman’s analysis comports with the ABI Commission’s recommendations for improvements in lease assumptions by chapter 7 debtors under Section 365(p).
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Different Rules Govern When Claims Accrue By or Against an Estate
Like physics, bankruptcy searches for a unified theory to explain claims by and against the estate.
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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.
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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).
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Expense Reimbursements Are Included in Calculating Current Monthly Income
Income is included in calculating CMI, even if it’s not ‘stable and regular.’
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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).
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