Debt Discharged in Prior Chapter 7 Isn’t Counted in Later Chapter 13 Eligibility
n an issue where the courts are divided, Bankruptcy Judge Ann M. Nevins of New Haven, Conn., ruled that personal liability on a secured debt that was eliminated in a prior chapter 7 discharge is not counted toward the debt limits in a subsequent chapter 13 case.
The decision by Judge Nevins was informed in part by a decision from the Ninth Circuit Bankruptcy Appellate Panel on July 30. Washington v. Real Time Resolution Inc. (In re Washington), 18-1206, 2019 BL 284935, 2019 Bankr. Lexis 2389, 2019 WL 345052 (B.A.P. 9th Cir. July 30, 2019).
In a so-called chapter 20 case, the BAP held in Washington that personal liability extinguished in a prior chapter 7 discharge is not resurrected and is not a claim to be paid in the debtor’s subsequent chapter 13 case.
Related Stories
April 9, 2024
Title: The Alarming Rise of Identity Theft: A 2024 Perspective In recent years, the threat…
July 27, 2022
IRS Fresh Start Initiative Program, resolving IRS tax debts. Do You Need a Fresh Start…
June 9, 2022
IRS First Time Penalty Abatement – FTA The first-time penalty abatement (FTA) waiver is an…
March 26, 2022
If you filed a chapter 7 bankruptcy, look into filling IRS form 982 When you…
Posted in: Debt & Bankruptcy
March 26, 2022
DID SOMEONE FILE FOR UNEMPLOYMENT BENEFITS UNDER YOUR NAME? If you discover that someone has…
February 3, 2022
RICO suit, McKinsey In a decision last week, the Court of Appeals for the Second…
December 17, 2021
BEWARE OF USING MONEY FROM YOUR IRA OR 401(K) TO PAY DEBTS This can be…
Posted in: Debt & Bankruptcy
December 17, 2021
How to Spot Student Loan Scams. Things you can do to protect yourself. “Enroll now…
Posted in: Debt & Bankruptcy
April 9, 2024
Title: The Alarming Rise of Identity Theft: A 2024 Perspective In recent years, the threat…
July 27, 2022
IRS Fresh Start Initiative Program, resolving IRS tax debts. Do You Need a Fresh Start…
June 9, 2022
IRS First Time Penalty Abatement – FTA The first-time penalty abatement (FTA) waiver is an…
March 26, 2022
If you filed a chapter 7 bankruptcy, look into filling IRS form 982 When you…
Posted in: Debt & Bankruptcy
March 26, 2022
DID SOMEONE FILE FOR UNEMPLOYMENT BENEFITS UNDER YOUR NAME? If you discover that someone has…
February 3, 2022
RICO suit, McKinsey In a decision last week, the Court of Appeals for the Second…
December 17, 2021
BEWARE OF USING MONEY FROM YOUR IRA OR 401(K) TO PAY DEBTS This can be…
Posted in: Debt & Bankruptcy
December 17, 2021
How to Spot Student Loan Scams. Things you can do to protect yourself. “Enroll now…
Posted in: Debt & Bankruptcy