Recently in Bankruptcy Law Category

In the IRS's appeal from a bankruptcy court's order confirming debtors' Chapter 12 reorganization plan, the order is affirmed where: 1) a Chapter 12 debtor may treat postpetition income taxes imposed on the debtor's income earned during the pendency of the case as administrative expenses under 11 U.S.C. section 503; 2) debtors' sale of their slaughter hogs in 2004 constituted the sale of a "farm asset used in the debtor's farming operation" under section 1222(a)(2)(A); and 3) the "marginal method" was the correct method to determine the allocation of taxes between priority and non-priority claims under section 1222(a)(2)(A).

Read Knudsen v. IRS, No. 08-2820

Appellate Information

Submitted: May 13, 2009

Filed: September 16, 2009

Judges

Opinion by Judge Smith

In a Chapter 13 bankruptcy case, district court's ruling in favor of debtor is reversed and remanded where it erred in finding that the creditor did not have a purchase-money security interest in its entire claim, including the negative equity financing resulting from debtor's trade-in vehicle. 

Read In re: Callicott, No. 09-1030

Appellate Information

Submitted: June 11, 2009

Filed: September 9, 2009

Judges

Opinion by Benton, Circuit Judge

Bankruptcy court's grant of debtors' motion to bifurcate creditor-Ford Motor Credit Company's claims is reversed and remanded as, under Missouri law, the amount financed to pay off the negative equity in the trade-in is part of the price of the new car, thus it is a purchase-money obligation and creditor has a purchase-money security interest securing its entire claim.  

Read Ford Motor Credit Co. Mierkowski, No. 08-3866

Appellate Information

Submitted: Junw 11, 2009

Filed: September 8, 2009

Judges

Opinion by Benton, Circuit Judge

In a bankruptcy action seeking an undue hardship discharge of substantial student loan debts, district court judgment is reversed where defendant is not entitled to an undue hardship discharge under 11 U.S.C. sec. 523(a)(8), as defendant is a recent law school graduate who is reasonably likely to be able to make significant debt repayments in the foreseeable future and qualified for the Department of Education's twenty-five year Income Contingent Repayment Plan. 

Read Educational Credit Mgmt. Corp. v. Jesperson, No. 07-3888

Appellate Information
Appeal from the United States District Court for the District of Minnesota.
Submitted: October 17, 2008
Filed: July 8, 2009

Judges
Before LOKEN, Chief Judge, BYE and SMITH, Circuit Judges.
Opinion by LOKEN, Chief Judge.
Concurring Opinion by SMITH, Circuit Judge. 
Dissenting Opinion by BYE, Circuit Judge.