Virginia

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.

Judge Revokes a ‘Nationwide’ Firm’s Right to Practice in Virginia Bankruptcy Court

Local lawyers were also caught up in the maelstrom caused by a ‘nationwide’ firm that skirted bankruptcy law and rules.

Courts Shifting to Say Corporate ‘S’ Status Is Not Property

Virginia judge sides with Third Circuit to hold that ‘S’ status is not a corporate debtor’s property.

Section 1326(a)(2) Overrides a Levy Under State Law

On dismissal before chapter 13 confirmation, the debtor gets undistributed funds, not a creditor with a valid state court levy.

Section 106 Waivers of Sovereign Immunity May Be Unconstitutional Sometimes

Patriot Coal decision analyzes Supreme Court authorities on sovereign immunity.

Disability-Care Payments Are Excluded from Calculation of ‘Disposable Income’

Government payments to care for disabled adults go to parents, not creditors, judge rules.

Pro Se Debtors Entitled to Different Notice Before Sua Sponte Dismissal

Pro se debtors must be told explicitly of the right to request a hearing.