(California Court of Appeal) – In a Chapter 7 bankruptcy case, held that when the nature of a debt is such that its discharge will directly and adversely impact the finances of the debtor’s spouse or former spouse, it is nondischargeable in bankruptcy, even if it is not directly payable to the spouse. Affirmed the district court.
(United States Ninth Circuit) – Held that a Chapter 7 debtor was not allowed to amend a bankruptcy schedule to reflect a post-petition increase in the value of property that was the subject of a homestead exemption under Washington law. Affirmed.
(United States Seventh Circuit) – Held that the receiver for a failed bank, the Federal Deposit Insurance Corporation, did not have to honor a benefits agreement with a bank executive, because the benefit he sought was a golden-parachute payment prohibited by federal law. Affirmed summary judgment for the FDIC.