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, MarylandAugust 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 CircuitAugust 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 CircuitJuly 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 DistrictJuly 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 DistrictJuly 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 CircuitJune 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 DistrictJune 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 DistrictMay 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 DistrictMay 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