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Schwab v. Reilly

Petitioner chapter 7 trustee moved to auction respondent debtor's business equipment, in which the debtor had claimed exemptions under 11 U.S.C.S. § 522(d)(5) and (6). The bankruptcy court denied the motion. A district court denied the trustee's request for relief, and the United States Court of Appeals for the Third Circuit affirmed. Certiorari was granted.
Ruling: 
Chapter 7 trustee was not required to object to debtor chef's claimed exemptions in business equipment, valued in allowed range, in order to preserve the estate's right to retain any value in the equipment beyond the value of the exempt interest.
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Commercial case opionion summary, case decided on June 17,2010, LexisNexis #0610-117

Hamilton v. Lanning

A bankruptcy court confirmed a chapter 13 plan, considering respondent debtor's actual income for "projected disposable income" (PDI) under 11 U.S.C.S. § 1325(b)(1)(B). An appellate panel and the U.S. Court of Appeals for the Tenth Circuit affirmed, holding that evidence of a substantial change in the debtor's circumstances could be used under a forward looking approach. Certiorari was granted on petitioner trustee's petition.
Ruling: 
Projected disposable income calculation should be presumed correct, but may be rebutted by evidence of a substantial change in circumstances.
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Consumer case opionion summary, case decided on June 07,2010, LexisNexis #0610-133

United Student Aid Funds Inc. v. Espinosa

The U.S. Court of Appeals for the Ninth Circuit held that confirming respondent Chapter 13 debtor's plan without finding undue hardship to discharge interest on a student loan under 11 U.S.C.S. § 523(a)(8) in an adversary proceeding did not render the order void under Fed. R. Civ. P. 60(b)(4), and that, although petitioner creditor was not served a summons, it had notice of the plan and failed to object. Certiorari was granted.
Ruling: 
Confirmation of chapter 13 plan that included discharge of student loan debt without finding of undue hardship was not void where creditor had notice and failed to object or appeal.
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Consumer case opionion summary, case decided on March 23,2010, LexisNexis #0410-032

Milavetz Gallop & Milavetz P.A. v. United States

Petitioner attorneys brought actions against respondent United States seeking a declaration that the attorneys were not subject to the bankruptcy statutes relating to debt relief agencies. Upon the grant of a writ of certiorari, the attorneys and the government cross-appealed the judgment of the U.S. Court of Appeals for the Eighth Circuit which held that the provisions applied to the attorneys but a limitation on advice was unconstitutional.
Ruling: 
Law firms are "debt relief agencies" under BAPCPA and may not advise debtors to incur additional debt in contemplation of filing for bankruptcy.
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Commercial case opionion summary, case decided on March 08,2010, LexisNexis #0310-090