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ABI Journal

Rochellel's Daily Wire

August 26, 2024

A Wholly Unsecured Lien May Be Stripped Off Even if It Predated Ownership

Bankruptcy Judge Michelle Harner held that a wholly unsecured, subordinate lien may be stripped off in chapter 13 even if the lien arose before the debtor owned the property.

4th Circuit, Maryland

August 19, 2024

Revesting on Discharge in Chapter 13 Can’t Be Mandated, Fourth Circuit Says

Local rules and local standard plans cannot force a chapter 13 debtor to disregard one of the options in Section 1327 and require revesting of estate assets on discharge.

4th Circuit

August 02, 2024

Split Fourth Circuit Panel Bars Use of Equity to Correct an Oversight in Retention

The majority in the Fourth Circuit based a bright-line rule on the presence of the word ‘the’ in Section 327(a).

4th Circuit

July 24, 2024

Arbitration Nixed on a Lender’s Claims for Violation of the Automatic Stay

Bankruptcy Judge Paul Black denied a motion to compel arbitration but didn’t decide whether he would certify a class.

4th Circuit, Virginia, Virginia Western District

July 10, 2024

A Partial Ethical Wall Didn’t Give Rise to Disinterestedness, Judge Kenney Said

Expedience is no substitute for disinterestedness when it comes to retention of a chapter 11 debtor’s general counsel.

4th Circuit, Virginia, Virginia Eastern District

July 03, 2024

Fourth Circuit Broadly Defines Restitutions that Aren’t Discharged in Chapter 13

The federal appeals court brushed aside technicalities under state criminal law in deciding that an order for restitution was not discharged under Section 1328(a)(3).

4th Circuit

June 24, 2024

As Subsequent Transferees, Churches Must Cough Up Fraudulent Transfers

Judge Huennekens explained that a church’s immunity for receipt of a constructively fraudulent transfer only applies if the transferor was an individual and the transferor was the debtor.

4th Circuit, Virginia, Virginia Eastern District

June 10, 2024

RSAs Don’t Bar Indenture Trustees from Creditors’ Committee Membership

Bankruptcy Judge Brian Kenney ruled that an indenture trustee must be on a committee when the debt is ‘overwhelmingly’ held by bondholders.

4th Circuit, Virginia, Virginia Eastern District

May 28, 2024

An Agreement to Modify a Mortgage Was an Assumable Executory Contract

Is pre-filing a mortgage modification agreement a contract to make a loan that cannot be assumed under Section 365(c)(2)?

4th Circuit, West Virginia, West Virginia Southern District

May 15, 2024

Orders for Contempt and Sanctions Aren’t Appealable in the Fourth Circuit

Whether orders in contested matters are ever appealable is in doubt after a Fourth Circuit decision that declined to follow contrary opinions by bankruptcy appellate panels.

4th Circuit