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ABI Journal

Rochellel's Daily Wire

January 23, 2025

Fourth Circuit Upholds a $31 Million Default Judgment for Discovery Abuses

Long Island’s Judge Grossman warns lawyers that they may be paid nothing if they file chapter 11 cases just to delay a secured creditor, with no legitimate strategy for selling the property, refinancing or confirming a plan.

4th Circuit

December 18, 2024

Debtor’s Appeal from Chapter 13 Plan Confirmation Held Equitably Moot

District court equates distribution to creditors in chapter 13 to substantial consummation of a chapter 11 plan.

4th Circuit, Virginia, Virginia Eastern District

November 14, 2024

Barring Use of an Online Payment Platform Was an Automatic Stay Violation

Bankruptcy Judge Michelle Harner decided that a mortgage servicer must allow a chapter 13 debtor’s continued use of an online payment platform.

4th Circuit, Maryland

October 21, 2024

Trustees’ Commissions Are Based on Distributions Made to Co-Owners of Property Sold

Bankruptcy courts are divided on whether the calculation of a trustee’s commissions includes distributions made to co-owners of property that the trustee has sold.

4th Circuit, Maryland

October 16, 2024

Two Courts Rule on Chapter 7 Debtors’ Standing for Objections to Sales and Claims

Virginia’s Judge Keith Phillips sides with courts that bar lenders from cutting deals with trustees to eliminate debtors’ homestead exemptions.

4th Circuit, Virginia, Virginia Eastern District

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