Virginia

‘Once a Creditor, Always a Creditor,’ Even if the Claim Is Paid, Judge Phillips Says

Being branded as a creditor is like a tattoo; it won’t ever come off.

Another District Judge Emphatically Rejects a Plan with Non-Debtor Third-Party Releases

A district judge in Virginia holds that third-party, non-debtor releases must be approved by district judge under Stern and must comply with the strictures of Federal Rule 23.

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.

Supreme Court Grants ‘Cert’ to Decide Whether Inaction Violates the Automatic Stay

Virginia case highlights the damage that will be done to debtor protections if affirmative action is required for a stay violation.

One Owner May Strip a Lien Off Property Owned JTWROS, Judge Huennekens Says

Courts disagree on lien stripping by one owner of entireties property and jointly owned property.

Another Appellate Court Bars Arbitration of ‘Core’ Claims

State attorney general was allowed to intervene in a class suit alleging that a lender violated usury laws.

One Preference Won’t Prevent Another from Being a Preference

A joint check agreement signed in the preference window is a preference, two Virginia judges say.

Refunds by Creditors After Chapter 13 Discharge Go to Creditors, Not the Debtor

The logic of Harris v. Viegelahn doesn’t mean that chapter 13 debtors receive distributions refunded by creditors.

Exemption Claim Overrides the Government’s Right of Setoff, District Judge Says

Courts are divided when an exemption claim collides with the government’s right of setoff.