Morris v. Quigley A chapter 13 debtor who planned to turn over to secured creditors two ATVs, for which she paid $163 per month, should have accounted for that additional income in calculating her projected disposable income, and the 4th Circuit reverses a district court order upholding the bankruptcy court decision that debtor could deduct the monthly payments that she would not be required to make.
Belfor USA Group, Inc. v. Helms After fire destroyed the debtors’ home, the husband alone signed an agreement to assign the couple’s homeowners’ insurance proceeds to the plaintiff-contractor. However, both debtors signed the construction contract. The bankruptcy trustee cannot avoid the assignment of the debtor-wife’s half of the insurance proceeds.
In re Goodman Less than 90 days before the debtor filed her bankruptcy petition, the Social Security Administration intercepted retroactive benefits which had been awarded to the debtor. Although the SSA did this to set off a pre-existing overpayment to the debtor, the set-off impermissibly improved the SSA’s position within 90 days before the filing of the bankruptcy petition. 11 U.S.C. § 553(b).
In re Sutton The debtor failed to show that it was fair to discriminate among unsecured creditors by separating them into student loan creditors - who would be paid in full - and other unsecured creditors - who would be paid only 3.8 percent on their claims.
SunTrust Bank N.A. v. Macky A bank cannot collect on a loan secured by a deed of trust on two contiguous parcels in Orange County, N.C., because the deed of trust on one of the tracts was not properly recorded under state law, and the 4th Circuit upholds the bankruptcy court order to avoid the bank’s lien on that tract.
McDaniel v. Blust The 4th Circuit upholds a district court’s dismissal of claims by former officers of debtor corporation against the trustee’s law firm, hired to pursue an adversary action against the officers and sued by the former officers for invasion of privacy, breach of fiduciary duty and civil conspiracy; the trial court did not err in applying the Barton doctrine to dismiss the officers’ claims
Gentry v. Siegel Three “Named Claimants” who filed proofs of claim for overtime pay in Circuit City’s consolidated bankruptcy cases may proceed with their claims in bankruptcy court, but the 4th Circuit employs an alternative procedural approach for allowing claimants to file class proofs of claim and to present motions to proceed as a class.
Behrmann v. National Heritage Foundation Although debtor foundation says this appeal is equitably moot as debtor has consummated its confirmed reorganization plan by distributing $20 million in estate assets, the 4th Circuit vacates the lower court order confirming the Chapter 11 plan that approved nondebtor release, injunction and exculpation provisions and remands the case for further proceedings.
We consider in this case the circumstances under which a bankruptcy court may approve nondebtor release, injunction and exculpation provisions as part of a final plan of reorganization under Chapter 11 of the Bankruptcy Code.
McDow v. Dudley A bankruptcy court order denying the U.S. Trustee’s motion to dismiss a debtor’s Chapter 7 bankruptcy case as abusive under 11 U.S.C. § 707(b) is a final order appealable under 28 U.S.C. § 158(a), and the 4th Circuit reverses the district court decision dismissing the appeal as interlocutory.
Because of the particular effect an order denying a motion to dismiss a Chapter 7 bankruptcy case as abusive has on the bankruptcy proceedings, we conclude a bankruptcy court’s order denying such a motion is appealable to the district court.
D&B Swine Farms, Inc. v. Murphy-Brown, L.L.C. In accordance with Stern v. Marshall, 564 U.S. ___, 131 S. Ct. 2594 (2011), the debtor’s adversary proceeding — based on state common law claims — is a non-core proceeding. Since two of the three contracts at issue include arbitration clauses, the claims for breach of those two contracts must be submitted to arbitration.
All further proceedings in this case are stayed pending the conclusion of arbitration.
