4th Circuit

Creditor Socked with $41,000 in Sanctions for Filing Trumped-Up Criminal Charges

Bankruptcy Judge Warren makes sure the sanctions won’t be dischargeable if the offending creditor files his own bankruptcy.

Fraudulent Transfer Suit Didn’t Succeed in ‘Discharging’ Student Loans

Can student loans be wiped out as fraudulent transfers that aren’t dischargeable under Section 523(a)(8)?

Three Judges Permit Redesignation under the SBRA, But with Qualifications

The SBRA can be used to extinguish a creditors’ committee previously appointed in a ‘traditional’ chapter 11 case.

Appeal Heads Toward the Fourth Circuit on Arbitration of Discharge Violations

Eventually, the Supreme Court will decide whether bankruptcy is a unique exception to the general rule that arbitration agreements are rigorously enforced.

Subchapter V Trustee Barred from Routine Retention of Counsel

Bankruptcy Judge David Warren warns small business trustees that they won’t be compensated if they are “overzealous” or undertake “unnecessary or duplicative services.”

Setoff Rights of the IRS Prevail over a Debtor’s Attempt to Exempt a Tax Refund

Fourth Circuit answered a question of first impression where the lower courts disagreed.
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Statutory Basis Explained for Deferring Rent in Response to the Coronavirus

Section 365(d)(3) doesn’t contain a remedy for failure to pay rent on time, Judge Huennekens says.

Currently Conducting Business Isn’t Required to Qualify for the SBRA

Dealing with the debt left over from a defunct business is enough to qualify as a small business debtor under the new subchapter V of chapter 11, Judge Burris rules.

Judge Kahn Finds No Constitutional Infirmities in Applying the SBRA Retroactively

Because the SBRA’s foundation is chapter 11, the new statute may be applied constitutionally to rights or property interests arising before enactment.

Incorporating AAA Rules by Reference Won’t Work with Consumers

Courts are split on the question of whether the incorporation of AAA rules by reference allows arbitrators to decide threshold questions of arbitrability and validity of an agreement to arbitrate.

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