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Pennsylvania

Another Example: Student Loans Are Virtually Impossible to Discharge

District court second-guesses the sufficiency of evidence that the bankruptcy court found sufficient.

Third-Party Releases Approved Without Awaiting the Outcome of Merit Management

Third-party releases would have been approved even if there were no ‘safe harbor’ defense.

Emotional Distress Damages Awarded for Civil Contempt on Automatic Stay Violation

Philadelphia judge socks the city’s parking authority for impounding a debtor’s car twice.

Receivership May Not Preclude a Board’s Ability to File Bankruptcy

A receiver who is not ‘disinterested’ can justify putting a company in bankruptcy.

Criminal Restitutions Are Not Recoverable as Preferences, Judge Agresti Says

Restitution payment does not qualify for the new value preference defense.

Look Forward 5 Years, Not 25, on Debtor’s Inability to Repay Student Loans, Judge Says

Term of the loan is the ‘relevant period’ for judging student loan dischargeability.

A Proper Foreclosure Sale Can Never Be a Preference, Judge Holds

Despite gaining more than through chapter 7, purchasing at foreclosure is no preference.

Insurance Companies Have Fewer Protections than Landlords and Aircraft Lessors

Absent special-interest legislation for bankruptcies, insurance companies remain in limbo.

Punitive Damage Claim from Involuntary Dismissal Brings Jury Trial Rights

Section 303(i)(2) claim, similar to malicious prosecution, invokes Seventh Amendment jury trial rights.

Plan Permitted to Stretch Out Redemption Payments Following a Tax Sale

Courts split on whether failure to redeem on time is fatal in a reorganization.

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