… The bankruptcy discharge was challenged by the creditor and has made its way to the Supreme Court.  Here is an overview of the decision made by lower courts last year:

In the case of ( Espinosa v. United Student Aid Funds Inc., No. 06-16421, 9th Cir. 10/02/08) the court stated:

“Our long-standing circuit law holds that student loan debts can be discharged by way of a Chapter 13 plan if the creditor does not object, after receiving notice of the proposed plan, Pardee, 193 …

Tags: Bankruptcy Supreme Court of the United States

Permalink: /student-loans/supreme-court-hears-student-loan-dispute/

… 13 Bankruptcy case of Olick, Thomas W.; In re (Olick v. Kearney, et al) the bankruptcy court ruled that the debtor’s former employer was liable to him for damages resulting from the debtor’s termination.

The details of the bankruptcy case:

In February 2006, the debtor filed a discrimination lawsuit against his employer and supervisor alleging that they reduced his sales territory as an insurance field agent because of his age.   Afterwards, the debtor received a COBRA …

Permalink: /chapter_13_bankruptcy/bankruptcy-court-awards-debtor-14997-due-to-employer%e2%80%99s-discriminatory-actions/

… If the transfer was made to an “insider” such as a relative or friend, the bankruptcy court will consider all transfers made in the year prior to filing bankruptcy.  Asset transfers that are made “below value” will receive special scrutiny by the bankruptcy court.  For example, selling your $100,000 home to a parent for $200 would raise suspicions as to whether the asset transfer was made with the sole intention of manipulating the bankruptcy system.

There are certain …

Permalink: /bankruptcy/i%e2%80%99ve-paid-several-bills-before-filing-bankruptcy-%e2%80%93-will-the-bankruptcy-court-demand-the-money-be-returned/

In the Chapter 7 bankruptcy case of Kunkelman, Jeffrey D.; In re, the bankruptcy court ruled that a debtor’s retirement contributions must be included in his disposable income and dismissed his Chapter 7 bankruptcy case.

The details of the bankruptcy case:

“The Chapter 7 debtor had one secured debt of $10,731 and unsecured debts of $18,628, including a $4,000 student loan. The debtor filed for bankruptcy just after getting a job in a distant city. Rather than …

Permalink: /bankruptcy-law/bankruptcy-court-tells-debtor-bills-come-before-retirement/

According to an article in Forbes, the U.S. Supreme Court will listen to oral arguments for and against the discharge of student loans in bankruptcy.  The debate will center around the Chapter 13 bankruptcy case of Francisco Espinosa who was able to obtain a partial discharge of his student loans in bankruptcy. That discharge was later challenged by the student loan lender.

The article said:

“Espinosa was working as a Phoenix, Ariz., …

Permalink: /student-loans/u-s-supreme-court-to-consider-student-loan-discharge-in-bankruptcy/

In the bankruptcy case of Beasley, Leonard; In re, The bankruptcy court ruled that a foreclosure sale held before the debtor’s bankruptcy filing was valid.

The details of the bankruptcy case:

“The debtor’s home was sold at a foreclosure sale held on Nov. 13, 2008. After filing for Chapter 13 relief on Feb. 9, 2009, the debtor asserted that the sale was improper because the debtor had been determined to be mentally incompetent, a conservator had …

Permalink: /bankruptcy-law/bankruptcy-court-rules-foreclosure-sale-valid/

… if you have a $500 a month Chapter 13 bankruptcy payment, you might choose to have the bankruptcy court deduct $250 from each of your bi-weekly paychecks, even if you’re only earning $500 every two weeks. To set up a ongoing deduction plan from your paycheck for repayment of the bankruptcy plan you will need to submit a written plan to the bankruptcy court stating exactly how much money you want deduct from each paycheck.  The bankruptcy court will then give a wage deduction order to your …

Permalink: /tax_debt_garnishments/will-the-bankruptcy-court-garnish-my-wages/

… de la Fuente, Antoinette and Lenord; In re (De la Fuente v. Wells Fargo Bank ), the bankruptcy court denied the lender’s motion for entry of a final judgment.

The details of the bankruptcy case:

When Wells Fargo Bank imposed fees on the Chapter 13 debtors’ account, the debtors accused the bank of violating the automatic stay and bankruptcy confirmation order. The attorneys for the debtors and the bank announced that they had reached a settlement on the matter.  The bankruptcy …

Permalink: /chapter_13_bankruptcy/bankruptcy-court-denies-banks-motion-for-entry-of-a-final-judgment/

… The blog writer provided the transcript of an exchange between the debtor and the judge:

The Court: “So we’re here today for you to explain what you’re going to do to pay this off.”

Mr. Button: “I can’t.”

The Court: “Okay, but you’re going to.”

Mr. Button: ” I can’t do it.”

The Court: “Okay, Mr. Button.”

Mr. Button: “Yes, Ma’am.”

The Court: ” For some reason we’re not communicating. Alright, you’re not hearing me for some …

Tags: Bankruptcy Chapter 7 Title 11 United States Code Court Indiana Law

In the bankruptcy case of (DiGiovanni, Peter W.; In re), the bankruptcy court grants a debtor’s motion to impose stay despite several mishaps that nearly landed him in jail.

The details of the bankruptcy case:

After the debtor (who is also a non-bankruptcy lawyer) was removed as the executor of the estate, the state court found the debtor in contempt of court because he failed to turn over the estate records to the new executor.   The debtor was ordered to …

Permalink: /filing_bankruptcy/despite-the-debtors-mishaps-bankruptcy-court-grants-stay/

In the bankruptcy case of (Martinez, Erasmo; In re, (Bankr. S.D.N.Y. 2009)) the bankruptcy court ruled that the Chapter 13 bankruptcy debtor could reduce the amount of a claim secured by an automobile purchased more than 910 days before filing bankruptcy.

The details of the bankruptcy case:

The Chapter 13 bankruptcy debtor proposed a plan that crammed down (reduced) a claim secured by an automobile purchased more than 910 days prepetition. The creditor was owed $12,213. The …

Permalink: /lawsuits/bankruptcy-court-allows-debtor-to-reduce-car-loan/

In the Chapter 13 bankruptcy case of (Halverson, Michael; In re), the bankruptcy court ruled that the Chapter 13 debtor’s bankruptcy estate was entitled to half of the joint income tax refunds received by the debtor and his nonfiling wife.

The details of the bankruptcy case:

“The Massachusetts Department of Revenue (MDOR) filed a proof of claim in the amount of $64,172 including $14,936 for joint income tax liabilities of the Chapter 13 debtor and his nonfiling …

Permalink: /chapter_13_bankruptcy/bankruptcy-court-splits-joint-income-tax-refund/