Consumer Bankruptcy

Aggressive Bankruptcy Planning Didn’t Result in the Loss of Discharge

Sixth Circuit held that preferring one creditor with a nondischargeable claim before bankruptcy isn’t intent to hinder, delay or defraud.
Court: 

Receipt of a Chapter 7 Discharge Doesn’t Preclude Conversion to Chapter 13

Small state exemptions mean that some low-income debtors can lose their homes in chapters 7 and 13 if there is equity.

On Conversion to ‘7,’ Admin Expenses in ‘13’ Must Be Paid, Harris Notwithstanding

When chapter 13 cases are converted to chapter 7 before confirmation, bankruptcy courts are split on whether the broad language in Harris v. Viegelahn bars chapter 13 trustees from paying administrative expenses incurred before conversion.

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