Consumer Bankruptcy

Debtors Have a Narrow Window in ‘13’ to Redeem Foreclosed Property, BAP Says

Because a right of redemption does not give rise to a claim, Section 1322(b) doesn’t enable a debtor to redeem foreclosed property when the right of redemption has expired.

Court:

9th Circuit

Debtor Not Compelled to Arbitrate Automatic Stay or Discharge Violations

A district court in Minnesota left the door open for sometimes compelling debtors to arbitrate claims arising in a bankruptcy case.

Court:

8th Circuit›Minnesota

Without Levy, a Recorded Judgment Lien Is Unperfected in Some States

In New Jersey, a trustee’s hypothetical judicial lien has priority over a judgment lien if the judgment lienholder has not made a levy on the property.

Court:

3rd Circuit›New Jersey

H.R. 9931, the "Student Borrower Bankruptcy Relief Act of 2024"

The Student Borrower Bankruptcy Relief Act of 2024 proposes to:

· Repeal Section 523(a)(8) of the Bankruptcy Code, which currently prevents the discharge of federal and private student loans absent a showing of “undue hardship.”

· Eliminate the need for borrowers to prove “undue hardship” thorough costly proceedings in court, reducing the legal and financial burdens on borrowers already at their most perilous financial state.

· Maintain existing bankruptcy means-testing, ensuring that only those who are already eligible for bankruptcy can access this relief.