Rochelle's Daily Wire

In the Fourth Circuit, creditors are compensated when there is a ‘substantial improvement’ in a chapter 13 debtor’s financial condition.

The ‘broad’ definition of ‘claim’ by the Supreme Court in Johnson led Judge Huennekens to hold that in rem rights against a debtor’s property give rise to a ‘claim.’

The Fourth Circuit says that bankruptcy courts have broader jurisdiction than other federal courts and that some of their decisions are unreviewable by Article III courts.

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.

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.

Bankruptcy Judge Klinette H. Kindred declined to expand Bartenwerfer by imputing fraud or larceny when the debtor wasn’t a partner or agent.

The Fourth Circuit majority upheld a preliminary injunction barring tort suits against a debtor’s nonbankrupt affiliates following a Texas divisional merger.

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.

The $7.5 million debt cap for Subchapter V doesn’t include the debt of affiliates who file later.

Affirming the bankruptcy court, the district court found that bifurcated fees are excessive and that inadequate disclosures violated Sections 526 and 528.