Bill on Bankruptcy: What's in the $83M ResCap Examiner's Report?
In the early 2000’s, James Rosen took out $60,000 in federal student loans to help his two daughters pay for college. Over the next two decades, he worked to pay down the debt. But he also suffered stretches of serious...more
Background - The case arose from a longstanding family arrangement involving reciprocal wills and a “Post Marital Agreement” between Morton Poindexter and his longtime partner, Peggy Martin. Their Agreement provided that,...more
One of the most unfair rules in American jurisprudence is the one holding individuals personally liable under the TCPA for actions they take as part of their employment. In almost every setting in the law if you do something...more
This blog previously covered the Supreme Court’s decision in Bartenwerfer v. Buckley, 598 U.S. 69 (2023), which held that, under Section 523(a)(2) of the Bankruptcy Code, an individual debtor may not discharge through...more
Bankruptcy is the process where someone who is unable to pay their debts files a petition to discharge (eliminate) those debts or restructure the debt with a payment plan. But what happens if a bankruptcy petition is filed by...more
Todd Christenson filed for chapter 7 bankruptcy in November 2010. In February 2011, a federal bankruptcy court in Minnesota discharged Christenson’s debts and, later the same year, closed the case. But almost 15 years...more
On June 27, 2024, the U.S. Supreme Court blocked a $6 billion bankruptcy settlement in Harrington v. Purdue Pharma L. P., No. 23-124, 2024 WL 3187799, at *11 (U.S. June 27, 2024). The Court found that the Bankruptcy Code does...more
On May 31, 2024, the CFPB announced that it had filed suit against a Pennsylvania-based student loan servicer for engaging in allegedly unfair, deceptive and abusive acts or practices in violation of the CFPA, 12 U.S.C. §§...more
On April 25, the US Court of Appeals for the Third Circuit issued its precedential opinion in Mallinckrodt v. Sanofi-Aventis, Case No. 23-1111, reminding everyone that “creditors take on risks” when it ruled that the debtor...more
The Third Circuit ruled that the obligations are prepetition “contingent and unliquidated” claims that can be discharged in a bankruptcy. In the chapter 11 bankruptcy of Mallinckrodt plc and certain subsidiaries (In re...more
On April 4, 2024, the U.S. Court of Appeals for the Fifth Circuit ordered a federal district court to enter a nationwide preliminary injunction to enjoin the Department of Education (ED) from implementing the Biden...more
Bankruptcy offers debtors an opportunity for a "fresh start," the primary draw for many individuals seeking to unburden themselves of their debt. A bankruptcy discharge relieves a debtor of their legal obligation to repay...more
We have written in the past about exceptions to the general rule regarding a debtor’s ability to discharge debt in bankruptcy and achieve a “fresh start.” In a recent decision of interest, the Court of Appeals for the Fourth...more
Alex Jones, the despicable, chest-thumping, conspiracy-peddling radio host, for years, blabbered on his radio show that the Sandy Hook Elementary School shooting was a hoax. When the families of the murdered children sued him...more
This course is drawn from Steve Gorin’s 4th quarter 2023 newsletter. The Corporate Transparency Act requires disclosure of beneficial owners, but how do you decide whether a fiduciary or beneficiary needs to be listed? We...more
On November 16, the DOJ and DOE announced a successful first year of their new student loan bankruptcy discharge process during 2022. The discharge process extinguishes a borrower’s obligation to pay back either some or all...more
Earlier this year, a district court for the Middle District of Florida upheld a jury award of $225,000 in punitive damages in a debt collection case finding the defendant’s conduct “reprehensible” based on the physical harm...more
As the calendar turns to autumn, the United States Supreme Court (“SCOTUS”) is commencing its new term and preparing to address a monumental issue that will impact chapter 11 law and the mass tort system: the permissibility...more
Under the Higher Education Act, the U.S. Department of Education is directed to issue regulations governing when student borrowers may seek to discharge their federal student loans due to the misconduct of their institutions...more
Here are curated AG and federal regulatory news stories highlighting key areas in which state and federal regulators’ decisions are having an impact across the US: •Google Reaches Settlement with AGs from 50 States, D.C.,...more
The U.S. Department of Education (DOE) approved $72 million in borrower defense to repayment discharges for students of online for-profit school Ashford University, which allegedly made substantial misrepresentations to...more
Portions of employer liability in California PAGA actions are dischargeable in bankruptcy under a bankruptcy court decision issued this summer. Specifically, employers’ liability for the 25% share of PAGA penalties to be...more
In a recent decision, Bruce v. Citigroup, Inc., et al., the United States Court of Appeals for the Second Circuit clarified the limits of bankruptcy court jurisdiction over class actions. Specifically, the court rejected a...more
In April, we discussed how Colorado’s state supreme court issued its highly anticipated decision confirming a borrower’s bankruptcy discharge does not accelerate secured installment debt or trigger the final statute of...more
On average, the Supreme Court hears a single bankruptcy case each term. But during the October 2022 term, the Supreme Court issued a remarkable four decisions in bankruptcy cases. These decisions, which are summarized below,...more