Discharge/Dischargeability

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.

Debt Held Nondischargeable as to Someone Who Didn’t Commit a Defalcation

Bartenwerfer held to make a debt nondischargeable as to someone who was neither a partner nor an agent.

Ninth Circuit Primed to Decide Whether Emotional Distress Damages Survived Taggart

The Ninth Circuit BAP eased the burden on debtors needing to prove that a lender violated Section 524(i) by failing to credit payments made under a plan.
Court: 

For Nondischargeability, a Bankruptcy Court Can Find a Securities Law Violation

A decision from a state or federal court before bankruptcy finding a securities law violation isn’t required for nondischargeability under Section 523(a)(19).
Court: 

Chicago District Judge Decides that Sub V Debtors Can Have Nondischargeable Debts

Reversing the bankruptcy court, the Chicago district judge follows the Fourth and Fifth Circuits and rejects a contrary holding by the Ninth Circuit BAP.

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