Attorney Cass S Weil's Legal Cases

Chapter 7 bankruptcy

Soler v. US. (In re Soler)

Jan 01, 2001

OUTCOME: Over $200,000 in student loans discharged

The debtor was allowed to discharge a Health Education Assistance Loan (HEAL) with a balance due of aproximately $150,000 and another student loan witrh a balance due of approximately $57,000 because t ... he court found that requiring Ms. Soler, a dentist working in a public health program earning 79,000 a year, to repay these loans would be "unconcionable" in the case of the HEAL loan and an "undue hardship" in the case of the other loan. The debtor was required to repay a second HEAL loan which had a balance due of approximately $79,000 because doing so was found to be not unconcionable. In arriving at this result, the court applied a "totality of the circumstances " test. Factors mitigating in the debtor's favor included her efforts at repayment (over $100,000 over 8 years), the crushing effect of the steadily mounting debt on the debtor's life, her efforts at finding better paying work, the circumstances of her acquiring the debt (debtor, who has limited language skills, was accepted into a private school dental program far from her home in rural Puerto Rico, with no language support. Because of her poor English language skills she took five years to complete the four year program - all totally financed by student loans, the terms of which she did not fully understand), the limitations on her ability to work more imposed by a medical condition and the unwillingness of the holders of the loans to negotiate.

Chapter 7 bankruptcy

Panuska v. Johnson

Jan 01, 1989

OUTCOME: Client received discharge

With the Tveten case, one of the leading cases defining the limits of "pre-bankruptcy planning" under the Bankruptcy code. Reconciling this decision with the Tveten case has provided guidance to debto ... rs counsel and creditors counsel. The principles laid down in the Tveten and Johnson cases were recently reaffrimed by the Eighth Circuit in Seaver V. Addison.

Bankruptcy and debt

Norwest Bank Nebraska, N.A. v. Tveten

Jan 01, 1988

OUTCOME: Client got discharge after conf. of Ch 11 Plan

Objection to discharge based on "pre-bankruptcy planning". The case resulted in three published opinions. The opinions in this case and Panuska v. Johnson set the standards for pre-bankruptcy plannin ... g in the Eighth Circuit under the Bankruptcy Code. The cases have also been extensivley cited in subsequent cases in the Eighth Circuit and other jurisdictions. The principles laid down in Tveten and Johnson concerning the limits on what debtors are permitted to do in converting non-exempt property into exempt property on the eve of bankruptcy were reaffirmed by the Eighth Circuit in Seaver v. Addison.

Chapter 11 bankruptcy

Norwest Bank Nebraska, N.A. v. Tveten

Jan 01, 1988

OUTCOME: Client rec'd Discharge by confirming Ch. 11 Plan

This case resulted in 3 reported decisions includng the Eighth Circuit decison referenced here. It is one of the most cited "pre-bankruptcy planning" decisons. The debtor converted over $700,000 of n ... on-exempot property into exempt property prior to filing bankruptcy. Although the Eighth Circuit, over a vigorous dissent, found that the debtor had done too much "planning", by getting a reorganization plan confirmed, the debtor ultimately received his discharge. This case should be read with Panuska v. Johnson, also profiled here, to understand the limits of what a debtor may do and may not do prior to filing bankruptcy to obtain the maximum benefit and fresh start. The Eighth Circuit recently reaffirmed the principles laid out in this case and Johnson in In re Addison, No. 07-2064 (8th Cir. 8/7/2008) (8th Cir., 2008) .

Cass S Weil's Legal Cases (4)

Soler v. US. (In re Soler)

Panuska v. Johnson

Norwest Bank Nebraska, N.A. v. Tveten

Norwest Bank Nebraska, N.A. v. Tveten