Ohio

Circuit Split on U.S. Trustee Fees Likely Won’t Reach the Supreme Court Until Fall 2022

Judge Hoffman sets up Sixth Circuit to opine on the circuit split regarding the constitutionality of the 2018 increase in fees for the U.S. Trustee system.

Judge Kendig Implies that Failure to Run a Lien Search is Tantamount to Malpractice

The debtors’ lawyer’s lack of diligence allowed the creditor to invoke laches and beat a belated motion to avoid a lien that impaired a homestead exemption.

Contested Matters Aren’t ‘Civil Actions’ Under the Equal Access to Justice Act

A contested matter in bankruptcy court isn’t a ‘civil action’ allowing the debtor to recover attorneys’ fees from the U.S. Trustee under the Equal Access to Justice Act.

An Undersecured Lender Can Indirectly Waive the Right to an 1111(b) Election

Agreeing to bidding procedures can waive the right to make the Section 1111(b) election, Judge Hoffman says.

Parental Support Isn’t Counted on Discharge of Student Loans, Judge Kendig Says

Private charity is not considered to be part of a debtor’s income under the first part of the Brunner test.

Another Workaround Following the Prohibition of Nunc Pro Tunc Orders

The Supreme Court hasn’t prohibited paying counsel fees for services rendered before the entry of a retention order, Judge Preston says.

Large Medical Bills Held Not to Be ‘Consumer’ Debts

Courts are split on whether large medical bills are consumer debts that invoke the means test and can bar relief in chapter 7.

Another Judge Clamps Down on Third-Party Releases in a Major Reorganization

Extinguishing contingent environmental claims doesn’t comply with the Sixth Circuit’s Dow Corning test, Judge Koschik says.

FDCPA Plaintiffs Aren’t Required to Plead the Debt Collector’s Knowledge of Bankruptcy

A debtor collector’s knowledge or intent aren’t elements of a claim under the FDCPA.

Courts Hopelessly Split on Modifying Mortgages on Mixed-Use Residential Properties

Judge Buchanan collects authorities on all sides of two questions befuddling courts everywhere.

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