A subcontractor that provided equipment, and received over $2.1 million in exchange, lost its attempt to keep those funds after the court agreed the money was paid as an avoidable transfer. Background Clark Construction Group LLC subcontracted work on a ...

Tagged with: Bankruptcy Judge Leonie Brinkema U.S. District Court - Eastern District

Where a creditor was not entitled to a distribution of excess cash entering the bankruptcy estate in the future pursuant to the express terms of the approved reorganization plan, the creditor lacked standing to obtain relief from judgment in order ...

Tagged with: Bankruptcy Judge Kevin R. Huennekens U.S. Bankruptcy Court

A majority of the en banc court held a Chapter 13 plan may bifurcate a claim based on an undersecured homestead mortgage into secured and unsecured components and cram down the unsecured component, overruling a 1997 decision that had been ...

Tagged with: 4th U.S. Circuit Court of Appeals Bankruptcy Judge James A. Wynn Jr.

BY CORREY E. STEPHENSON BridgeTower Media Newswires Overruling 22 years of precedent, the en banc 4th U.S. Circuit Court of Appeals has ruled that Chapter 13 debtors may divide some undersecured home mortgage loans into secured and unsecured claims and ...

Tagged with: 4th U.S. Circuit Court of Appeals News Bankruptcy Real Estate

A debtor might be able to discharge a $20 million plus judgment through a Chapter 7 bankruptcy. The district court found the debt nondischargeable under principles of collateral estoppel, reasoning that, because the debtor was found liable for misappropriating trade ...

Tagged with: 4th U.S. Circuit Court of Appeals Bankruptcy Judge Stephanie Dawn Thacker

A creditor who shipped almost $575,000 worth of goods to a toy store now in bankruptcy will not be allowed to file a priority claim past the deadline set by the bankruptcy court because it had the information necessary to ...

Tagged with: Bankruptcy Judge John A. Gibney Jr. U.S. District Court - Eastern District

Where a debtor executed a promissory note on behalf of a company controlled by her daughter and son-in-law and the bank required that the debtor’s then husband execute a deed of trust to create a lien on the couple’s principal ...

Tagged with: Bankruptcy Judge Paul M. Black U.S. Bankruptcy Court

Where a husband and wife initiated a Chapter 7 bankruptcy action to halt the sale of their home in a foreclosure commenced when the wife failed to make payments ordered in her prior Chapter 13 bankruptcy case, the wife could ...

Tagged with: Bankruptcy Judge Kevin R. Huennekens U.S. Bankruptcy Court

Where a debtor filed a class action complaint alleging that a creditor violated Rule 3001 of the Federal Rules of Bankruptcy Procedure by filing a proof of claim and falsely reporting that no interest or fees were included in the ...

Tagged with: Bankruptcy Judge Keith L. Phillips U.S. District Court - Eastern District

A Maryland casino’s objection to a Virginia debtor’s repayment plan because of a “marker” he owed the casino was sustained, despite a Virginia code prohibition making gaming contracts void, because Virginia’s public policy against enforcing gambling debts is no longer ...

Tagged with: Bankruptcy Judge Brian F. Kenney U.S. Bankruptcy Court