4th Circuit

Corporate Debtors in Subchapter V May Discharge Nondischargeable Debts

Only individuals in subchapter V of chapter 11 are barred from discharging debts found to be nondischargeable under Section 523(a).

The Mailbox Presumption Won’t Deem a Claim to Have Been Timely Filed

Courts are split on the extent to which an affidavit of timely mailing will suffice to prove that a claim was filed.

Split Widens on Trustee’s Ability to Use the IRS’s Longer Statute of Limitations

North Carolina Judge disagrees with the Fifth Circuit on extending the statute of limitations to 10 years under Section 544(b)(1).

Unrepentant Lender Slammed with $260,000 in Damages for an ‘Egregious’ Stay Violation

Lender soon recognized that home foreclosure violated the stay but continued denying liability through seven years of litigation.

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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