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Differences Between Reality TV Star’s Bankruptcy Schedules and Television Persona Reportedly Led to Criminal Investigation and Bankruptcy Fraud Charges
Federal prosecutors filed bankruptcy fraud charges against a reality television star in October 2015, alleging that she attempted to conceal income from the court during a bankruptcy proceeding. United States v. Miller, No. 2:15-cr-00212, indictment (M.D. Pa., Oct....
Bankruptcy Appeal Could Challenge Prevailing Law Regarding Dischargeability of Student Loans
A federal appellate case has the potential to make substantial changes to the way American bankruptcy courts handle student loans. Federal bankruptcy law does not allow courts to discharge student loan debt, unless the debtor can show that they and their dependents...
Creditor Claims that Bankruptcy Court Ruling Affects Pending State Court Litigation
When a debtor files a bankruptcy petition, the automatic stay prevents any pending litigation involving the debtor from moving forward. 11 U.S.C. § 362. Once a bankruptcy case is closed, or once a bankruptcy judge lifts the automatic stay, pending lawsuits and other...
Department of Education Expands Options for Student Loan Debt Relief
Current and former students in the U.S. reportedly owe more than $1 trillion in public and private student loans. For many, the burden of student loan debt nearly eliminates any benefit of the education obtained with the loan proceeds. Making matters worse is the fact...
Bankruptcy Court Cannot Reduce Amount of State Court Judgment, According to California Federal Court
The bankruptcy process allows individuals and families to rebuild their finances after they find themselves unable to continue paying their debts with their existing income. Under the federal Bankruptcy Code, bankruptcy judges can make rulings regarding the payment of...
Bankruptcy Court Denies Motion to Reopen Chapter 7 Case Because of Mistake of Law
A bankruptcy court recently denied a creditor’s motion to reopen a Chapter 7 case after discharge, finding that the creditor had failed to follow the proper procedure to preserve their claims. In re Lavandier, No. 14-bk-12553, mem. dec. (Bankr. S.D.N.Y., Aug. 27,...
Chapter 13 Bankruptcy Appeal Dismissed for Non-Compliance with Procedural Rules
The bankruptcy court system deals with a substantial number of cases, with thousands of new cases filed every year. The Federal Rules of Bankruptcy Procedure establish certain uniform standards and procedures, and district and bankruptcy courts may establish local...
California Bankruptcy Court Lifts Automatic Stay for Purchaser of Real Property at Pre-Bankruptcy Foreclosure Sale
A California federal district court recently affirmed a bankruptcy court’s order lifting the automatic stay in a Chapter 13 proceeding, finding that the matter in question was not subject to the automatic stay under one or more exceptions found in the Bankruptcy Code...
California District Court Affirms Bankruptcy Court’s Order Imposing Sanctions on Debtors
The federal Bankruptcy Code gives wide discretion to individual bankruptcy judges to issue orders, including the authority to impose sanctions on a debtor or other party for acts that it finds to be unlawful or otherwise counter to the purpose of a bankruptcy case. A...
Business Owner Disputes Whether Social Media Accounts Are Property Belonging to the Bankruptcy Estate
A Texas bankruptcy case, in which the former owner of a debtor business spent about seven weeks in jail for refusing to turn over passwords to several social media accounts, may have a substantial impact on the legal status of social media accounts as assets of a...
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