Discharge/Dischargeability

Second Circuit Nixes Nationwide Class Actions for Discharge Violations

The Second Circuit split with the First Circuit, which had permitted nationwide class actions because the discharge injunction is statutory.
Court: 

Debt for Selling a Gun Used in a Mass Killing Was Dischargeable

Congress might want to consider closing a dischargeability loophole when it comes to injuries indirectly resulting from commission of a felony.

Biden Administration Unveils $39B of Student Debt Relief as Part of Income-Driven Repayment Fix

The Biden administration announced that it would cancel $39 billion of student debt owed by more than 804,000 borrowers whose debts have been outstanding for more than 20 years, Politico reported. The Education Department said that it was implementing its plan, announced in April 2022, to compensate borrowers for what it called “historical inaccuracies” and other failures in how the agency and its contracted loan servicers have managed the income-driven repayment programs. The program is separate from President Joe Biden’s sweeping student debt relief program that the Supreme Court struck down last month. But the announcement comes as the Biden administration looks to highlight its alternative pathways for delivering student debt relief in the face of that legal defeat.
 
Click here for the Department of Education's press release.

 

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Equitable Tolling Cannot Extend the Deadline for a Dischargeability Objection

The Third Circuit lauded Bankruptcy Judge Craig Goldblatt for a ‘well-reasoned’ opinion correctly interpreting Supreme Court authority.
Court: 

Bartenwerfer Doesn’t Apply if the Debtor Isn’t a Partner or Agent, Bankruptcy Judge Says

Bankruptcy Judge Klinette H. Kindred declined to expand Bartenwerfer by imputing fraud or larceny when the debtor wasn’t a partner or agent.

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