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Discharge/Dischargeability

Fifth Circuit Cites ‘Clearly Erroneous’ Findings to Declare a Debt Nondischargeable

Circuit says it’s easy to show reasonable reliance on a false financial statement.
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Delaware District Court Upholds Discharge of Environmental Fines in Chapter 11

Environmental fines are discharged in chapter 11 because they do not result from pecuniary loss.
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Ninth Circuit BAP Applies Taggart to Violations of the Automatic Stay

Taggart left open the question of whether the ‘no objectively reasonable basis’ standard for discharge violations also applies to contempt of the automatic stay.
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Another Case Shows the Need to Provide Remedies for Discharge Violations

Discharge was violated, but sanctions are likely out of reach.
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Mortgage Servicer Hit with $300,000 in Actual and Punitive Damages for Stay Violation

The creditor was guilty of an automatic stay violation, but Taggart insulated the creditor from liability for a discharge violation for continuation of the same conduct.
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Ninth Circuit Equivocates on ‘Collection Injunctions’ in Individual Chapter 11s

Dissenter in the Ninth Circuit says that utilizing provisions in the Bankruptcy Code is not bad faith barring confirmation.
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Ninth Circuit Takes a Hard Line Against Waiving Discharge Inadvertently

The Ninth Circuit may be backing off from Ybarra, a case that waives discharge for attorneys’ fees if the debtor ‘returns to the fray.’
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Must a Debtor Be Destitute Before Discharging Student Loans?

Unemployed for 16 months, surviving on food stamps, and living rent-free enabled a debtor to discharge student loans.

Bankruptcy Discharge Cuts Off Future Liability on a Guaranty

Courts are split on whether a personal guaranty survives bankruptcy.
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Silence in the Face of a Duty to Disclose Is Not a ‘Statement,’ 9th Cir. BAP Holds

The Ninth Circuit BAP closed a loophole that would have allowed a recipient of public assistance benefits to discharge a debt for overpayment.
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