Small Debtors Can Amend Approved Bankruptcy Plans, 4th Cir. Says

A judge-made doctrine allowing courts to refuse hearing bankruptcy appeals to avoid upsetting confirmed plans shouldn’t apply to simple, small-dollar cases, an appeals court ruled.

The equitable mootness doctrine, which is sometimes raised to stop parties from disturbing the implementation of court-approved bankruptcy plans, generally shouldn’t apply to straightforward Chapter 13 cases when potential relief remains possible, the US Court of Appeals for the Fourth Circuit said in a published opinion Monday.

The Fourth Circuit reversed a decision from the US District Court for the Eastern District of Virginia based on it applying equitable mootness. But the appeals panel ...