Where a primary insurer attempted to block the reorganization plan of its insureds for current and future asbestos personal-injury liabilities, but the plan preserved the insurer’s coverage defenses and the debtors’ obligations under their policies, the insurer lacked standing to ...

Tagged with: 4th U.S. Circuit Court of Appeals Bankruptcy Judge G. Steven Agee

Where the debtor appealed from the bankruptcy court’s order granting relief from the automatic stay, but the bankruptcy court then issued a discharge order while her appeal was pending, the appeal was moot. While the debtor’s appeal essentially sought reinstatement ...

Tagged with: Bankruptcy Judge Michael S. Nachmanoff U.S. District Court - Eastern District

Where debtors asserted that a bank violated the discharge injunction, but their arguments had already been rejected by courts, misapprehended the law or stated claims that were implausible, the bank was granted judgment on the pleadings. Background This case involves ...

Tagged with: Bankruptcy Judge Rebecca B. Connelly U.S. Bankruptcy Court

Where one of the debtors believes that he might be entitled to compensation under the recently-passed Camp Lejeune Justice Act of 2022, his motion to reopen the bankruptcy in order to disclose the claim was denied. The cause of action ...

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

Where the Affordable Care Act, or ACA, required individuals who failed to comply with its mandate to pay a “shared responsibility payment,” or SRP, to the Internal Revenue Service through their annual income tax returns, the SRP should be considered ...

Tagged with: 4th U.S. Circuit Court of Appeals Bankruptcy Judge William B. Traxler Jr.

Where debt collectors sent debtors a payoff letter and offered a discounted payment for the judgment debt after the debtors filed for bankruptcy protection, the debt collectors violated the discharge injunction. They must pay $25,000 the debtors incurred in attorney’s ...

Tagged with: Bankruptcy Judge Rebecca B. Connelly U.S. Bankruptcy Court

Where the debtor sold her house, but the mortgage holder received no proceeds, and it then sued the debtor, purchasers and new mortgage holder in circuit court, the bankruptcy court will abstain from the suit. The circuit court can adjudicate ...

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

Where partners in the now-defunct law firm LeClairRyan PLLC argued they were improperly included on the equity security holders, or ESH, list filed by the liquidating trustee, because they resigned from the firm after it voted to dissolve, but the ...

Tagged with: Bankruptcy Judge David J. Novak U.S. District Court - Eastern District

Where the confirmed plan made the liquidating trustee the party responsible for the quarterly fee payments in the stead of the debtors, directed the liquidating trustee to make the payments and the plan received creditor approval, the liquidating trustee was ...

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

Where debtors alleged that a bank filed notices stating that the debtors had requested forbearance, which was false, they plausibly alleged claims under Rule 3002.1, for violations of the automatic stay and for contempt under the court’s inherent powers and ...

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