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4th Circuit: Business Subchapter V Debtors May Not Discharge All Debts

In re Cleary Packaging, LLC No. 21-1981 signals a departure from the trend of lower courts that have considered the issue and places more pressure on subchapter V debtors to confirm consensual plans in the Fourth Circuit.

Fourth Circuit Rules That Corporate Small Business Debtors Under Subchapter V May Not Be Able to Discharge All Debts | ArentFox Schiff

On June 7, 2022, the Fourth Circuit Court of Appeals unanimously held that the exceptions to discharge found in section 523(a) of the Bankruptcy Code, which ordinarily exclusively apply.

Ocean City s Crabcake Factory USA will head to auction to settle debts

View Comments OCEAN CITY, Md.   The Crabcake Factory at 120th Street in Ocean City will head to auction this month after the business declared bankruptcy back in the fall, having owed thousands to various groups.  Bidders will have until May 19 to place bids on the restaurant s furniture, fixtures, equipment, royalties and tangible and intangible assets, according to Alex Cooper Auctioneers, organizer of the auction. The opening bid for the restaurant is currently set at $325,000. Interested parties will be able to purchase tangible assets like Crabcake Factory s t-shirts, hats and memorabilia, as well as dining and kitchen equipment, according to the auction company.

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