by Devin Sawdayi | Apr 9, 2014
Student loan debt presents a significant problem for individuals seeking bankruptcy protection under Chapter 7 of the Bankruptcy Code. Federal law specifically excludes student loans from discharge, unless a debtor can show “undue hardship” to themselves or their...
by Devin Sawdayi | Mar 30, 2014
Personal bankruptcy can help people recover from serious financial distress, when they no longer have enough consistent income to pay their bills. A major concern for people considering bankruptcy is the effect it will have on their credit and their future financial...
by Devin Sawdayi | Mar 24, 2014
A bankruptcy court recently granted a debtor’s request to discharge his student loan debt in a Chapter 7 proceeding. Federal bankruptcy law prohibits discharge of student loan debt except in extremely limited circumstances. The court found that repayment of the full...
by Devin Sawdayi | Mar 18, 2014
Aaron Carter, who achieved fame as a singer in the late 1990s and early 2000s, filed for Chapter 7 bankruptcy in Florida in October 2013. In his petition, he lists assets of just over $8,000 and debts of more than $2 million. More than half of the debts, including a...
by Devin Sawdayi | Mar 11, 2014
Federal law allows bankruptcy courts to dismiss a Chapter 7 petition if it finds that granting a discharge of debt would constitute an abuse of the bankruptcy system. A debtor must overcome a presumption of abuse by using the Chapter 7 “means test” to show that their...
by Devin Sawdayi | Mar 7, 2014
A Chapter 13 debtor appealed a bankruptcy judge’s order granting relief from the automatic stay to a credit union, which sought to evict them after a foreclosure. The Bankruptcy Appellate Panel (BAP) for the Ninth Circuit affirmed the lower court’s order, finding that...
by Devin Sawdayi | Feb 22, 2014
Two debtors, a married couple, brought an adversary proceeding against a bank, claiming that it violated the automatic stay by continuing to prosecute a lawsuit in state court against a corporation in which they were the sole shareholders, by filing another lawsuit...
by Devin Sawdayi | Feb 17, 2014
When a retail business closes or files for bankruptcy, what becomes of the unused gift cards and gift certificates that it has issued to consumers? The question has unfortunately become common for both businesses and consumers. A similar question can apply to...
by Devin Sawdayi | Jan 27, 2014
A federal district court affirmed a bankruptcy judge’s order converting a Chapter 13 bankruptcy to a Chapter 7 based on a finding of bad faith on the part of the debtor. In re Killian, No. 3:12-cv-03156, order (C.D. Ill., Sep. 30, 2013). Federal bankruptcy law allows...
by Devin Sawdayi | Jan 21, 2014
An upcoming art auction, conducted by the famous auction house Sotheby’s, will put over two hundred pieces up for sale as part of an asset liquidation in the ongoing bankruptcy of Ralph Esmerian. Esmerian, the former owner of a luxury jewelry retailer, pleaded guilty...
