August 23, 2023
Fourth Circuit: State Law Claims for Discharge Violations Are Not Preempted
The Fourth Circuit declined to follow the First and Sixth Circuits on preemption of automatic stay violations by expanding the ban to redress for discharge violations.
4th CircuitJuly 27, 2023
All Future Liability on a Lease Counted for Subchapter V Eligibility
Future liability on a lease was counted as a liquidated, noncontingent debt in calculating whether the Subchapter V debtor had more than $7.5 million in debt.
4th Circuit, Virginia, Virginia Eastern DistrictJuly 12, 2023
Bartenwerfer Doesn’t Apply if the Debtor Isn’t a Partner or Agent, Bankruptcy Judge Says
Bankruptcy Judge Klinette H. Kindred declined to expand Bartenwerfer by imputing fraud or larceny when the debtor wasn’t a partner or agent.
4th Circuit, Virginia, Virginia Eastern DistrictJune 23, 2023
A Fourth Circuit Dissenter Opposes Mass-Tort Injunctions Protecting Non-Debtors
The Fourth Circuit majority upheld a preliminary injunction barring tort suits against a debtor’s nonbankrupt affiliates following a Texas divisional merger.
4th CircuitJune 21, 2023
‘13’ Debtors May Deduct their Actual Mortgage Expenses to Arrive at Disposable Income
The Fourth Circuit agreed with the Sixth and Ninth Circuits by allowing chapter 13 debtors to deduct their actual mortgage expenses, not limited by the local standard mortgage deduction.
4th CircuitMay 23, 2023
Bankruptcy Judges Agree: Later Developments Don’t Undo Subchapter V Eligibility
The $7.5 million debt cap for Subchapter V doesn’t include the debt of affiliates who file later.
4th Circuit, Virginia, Virginia Western DistrictMay 19, 2023
Bifurcated Fee Arrangements Now Seem Impossible in South Carolina
Affirming the bankruptcy court, the district court found that bifurcated fees are excessive and that inadequate disclosures violated Sections 526 and 528.
4th Circuit, South CarolinaApril 10, 2023
There’s Peril in Issuing a Report and Recommendation When It’s Not Necessary
Fourth Circuit opinion shows how abstention is a powerful tool that insulates an erroneous decision from appellate review.
4th CircuitMarch 27, 2023
A Lawsuit to Collect a ‘DSO’ Runs the Risk of Violating the Automatic Stay
Although collecting a ‘DSO’ from non-estate property is permitted by Section 362(b)(2)(B), a district judge says that an in personam suit against the debtor can violate the automatic stay.
4th Circuit, Virginia, Virginia Western DistrictMarch 24, 2023
‘13’ Debtors Need to Know Whether They Lose Appreciation When They Sell a Home
One of the biggest unanswered questions in chapter 13 sometimes forces debtors to keep homes they need to sell or strips away appreciation if they are forced to sell.
4th Circuit, Virginia, Virginia Eastern District