Circuit says it’s easy to show reasonable reliance on a false financial statement.
Environmental fines are discharged in chapter 11 because they do not result from pecuniary loss.
Taggart left open the question of whether the ‘no objectively reasonable basis’ standard for discharge violations also applies to contempt of the automatic stay.
Discharge was violated, but sanctions are likely out of reach.
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.
Dissenter in the Ninth Circuit says that utilizing provisions in the Bankruptcy Code is not bad faith barring confirmation.
The Ninth Circuit may be backing off from Ybarra, a case that waives discharge for attorneys’ fees if the debtor ‘returns to the fray.’
Unemployed for 16 months, surviving on food stamps, and living rent-free enabled a debtor to discharge student loans.
Courts are split on whether a personal guaranty survives bankruptcy.
The Ninth Circuit BAP closed a loophole that would have allowed a recipient of public assistance benefits to discharge a debt for overpayment.