Discharge/Dischargeability

Fourth Circuit Would Discharge CERCLA Claims if Pollution Occurred Before Filing

Maryland district judge predicts that the Fourth Circuit would adopt a debtor-friendly rule more broadly discharging environmental claims when the acts occurred before chapter 11.
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Capped Landlord Claim Can Also Be Nondischargeable, Eighth Circuit Says

Retired Judge Kressel wrote the opinion in 2000 relied on by the Eighth Circuit.
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Bad Faith Permits Dismissal of a Chapter 13 Case with Conditions, Judge Waites Says

Debtor accepted a bar to refiling to avoid dismissal with prejudice of her chapter 13 case.

Student Loans Were Discharged Only with Assistance from Pro Bono Counsel

A debtor with negative disposable income was forced to go through two trials and three appeals to discharge student loans.

On Student Loan Discharge, District Judge Requires Responses to Unasserted Defenses

New York district judge requires a student loan debtor to prove the reasonableness of living expenses when the lender never objected.

Surety Bonds Aren’t Executory Contract and Can’t Be Assumed, District Judge Says

An irrevocable surety bond isn’t executory because it gives the bonding company no further obligations to the debtor.

Objections to Priority Claims May Follow Confirmation of a Chapter 13 Plan

Confirming a chapter 13 plan on the assumption that a claim was entitled to priority didn’t bar the debtors from later objecting to the priority of the claim.

Time Limits for Effecting Service of Process Can Be Flexible, Eleventh Circuit Says

Under unusual circumstances, a two-year delay in completing service of process was not fatal in the Eleventh Circuit.
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Good Faith Is No Defense to an Allegedly Willful Stay Violation, Third Circuit Says

Lack of authority on point is no defense to a willful violation of the automatic stay, according to the Third Circuit.
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