Securities Law Judgment Excepted from Discharge
Posted on Feb 21, 2017 in Bankruptcy, Securities | Comments Off on Securities Law Judgment Excepted from Discharge
On the same day the court decided Appling (below), the Eleventh Circuit issued a second bankruptcy-discharge opinion, this time addressing one of the more obscure exceptions from discharge, § 523(a)(19)(A)’s exception for judgments for securities law violations. Lunsford v. Process Technologies Services, LLC (In re Lunsford), 2017 WL 603845 (11th Cir. Feb. 15, 2017). Judge Bill Pryor...
Court Broadly Construes Bankruptcy Discharge Exception for Fraud
Posted on Feb 17, 2017 in Bankruptcy | Comments Off on Court Broadly Construes Bankruptcy Discharge Exception for Fraud
One of the most litigated issues in bankruptcy court is whether a discharge of a particular claim should be granted to a debtor who has committed fraud relating to the claim, a statutory discharge exception found in section 523(a)(2)(A) and (B) of the Bankruptcy Code. The statute establishes a dichotomy between fraudulent statements regarding the debtor’s (or an “insider” of the...
Health Savings Accounts not exempt from bankruptcy estate in Georgia
Posted on Jan 27, 2017 in Bankruptcy | Comments Off on Health Savings Accounts not exempt from bankruptcy estate in Georgia
After the Georgia Supreme Court answered a certified question, the Eleventh Circuit held that health savings account (“HSA”) funds are not property exempt from the bankruptcy estate under Georgia law. In Mooney v. Webster, No. 15-11229 (11th Cir. Jan. 27, 2017), a Chapter 7 bankruptcy petitioner claimed the assets in her HSA account as exempt from bankruptcy under O.C.G.A. §...
Direct Appeal from Bankruptcy Proceeding Transferred for Lack of Jurisdiction
Posted on Jan 12, 2017 in Bankruptcy | Comments Off on Direct Appeal from Bankruptcy Proceeding Transferred for Lack of Jurisdiction
Federal courts have struggled with the implications of Stern v. Marshall, 564 U.S. 462 (2011), and Wellness International Network, Ltd. v. Sharif, 135 S. Ct. 1932 (2015)—in which the Supreme Court held that the Constitution requires the parties’ consent before bankruptcy courts can finally adjudicate claims that neither “stem[] from the bankruptcy itself [n]or would necessarily be...
Supreme Court to Decide Interplay Between Bankruptcy Code and FDCPA
Posted on Oct 12, 2016 in Bankruptcy | Comments Off on Supreme Court to Decide Interplay Between Bankruptcy Code and FDCPA
This past Tuesday, the Supreme Court granted certiorari in Midland Funding, LLC v. Johnson, No. 16-348 (cert. granted Oct. 11, 2016), to review the Eleventh Circuit’s holding that filing a stale proof of claim in a consumer bankruptcy violates the Fair Debt Collection Practices Act. For more details on the Eleventh Circuit’s opinion, 823 F.3d 1334 (11th Cir. 2016), see our previous...
“Surrender” Means “Surrender” – A Debtor Who Surrenders Collateral in Bankruptcy Gives Up the Right to Oppose Foreclosure
Posted on Oct 5, 2016 in Bankruptcy | Comments Off on “Surrender” Means “Surrender” – A Debtor Who Surrenders Collateral in Bankruptcy Gives Up the Right to Oppose Foreclosure
David and Donna Failla filed for Chapter 7 bankruptcy protection in 2011. Shortly thereafter, the Faillas filed the “statement of intention” required by section 521(a)(2) of the Bankruptcy Code with respect to their house, which was subject to a mortgage held by Citibank. In the statement, the Faillas agreed to “surrender” the house instead of the other options provided under the...
