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ABI Journal

4th Circuit

Fourth and Third Circuits Give Priority to Obamacare’s Individual Mandate Penalty

The Fourth Circuit sides with the Third on the Affordable Care Act’s ‘individual mandate.’ Majority says it was a tax measured by income, thus giving the IRS a priority tax claim.

Bankruptcy Courts Disagree on Paying U.S. Trustee Fees by Liquidating Trusts

Adroitly drafting a chapter 11 plan may avoid having a liquidating trust pay quarterly fees to the U.S. Trustee.

The Best Opinion Yet Ordering Refunds for Overpayment of U.S. Trustee Fees

All three courts to confront the question have now ordered the government to refund overpayments of U.S. Trustee fees.

A Section 542(b) Turnover Action Can’t Be Used to Compel Payment of a Judgment

Writs of execution and supplemental proceedings, not turnover actions, are the methods for enforcing a money judgment, Bankruptcy Judge Warren says.

Placing Title Jointly with a Spouse May Be Avoidable if the Spouse Gave No Consideration

In South Carolina, taking title to property jointly with a spouse can be an avoidable gift under the Statute of Elizabeth.

The War Between National and Local Rates Continues in Eastern Virginia

Counsel run the risk of being paid lower local rates in ‘mega’ cases filed in the Eastern District of Virginia.

Judge McAffee Agrees with Former Judge Sontchi on Authorized Corporate Actions

The automatic stay does not bar increasing authorized shares when the debtor is a minority shareholder.

The PBGC Isn’t a ‘Triggering Creditor’ for a Section 544(b) Suit by a Trustee

If the government isn’t suing on a claim originally owing to the U.S., a trustee can’t use the six-year statute of limitations in the FDCPA.

Corporate Debtors in Subchapter V Can’t Discharge Nondischargeable Debts, Circuit Says

Both individuals and corporations in subchapter V of chapter 11 are barred from discharging debts that are nondischargeable under Section 523(a).

Fourth Circuit Rejects Frontal Assault on In Pari Delicto as a Bar to Suits by a Trustee

Circuit refuses to make an exception for trustees regarding the judge-made doctrine of in pari delicto.