The surge in bankruptcy work that had fueled some practices during the Great Recession has fallen off, but many attorneys are hopeful that growth in transactional areas will help level the landscape.

Tagged with: Bankruptcy

Ranta v. Gorman, Trustee The 4th Circuit says the Bankruptcy Code excludes Social Security income from the calculation of “projected disposable income” in a debtor’s proposed Chapter 13 plan, but such income nevertheless must be considered in evaluating the plan’s feasibility, and this case will go back to the bankruptcy court.

Tagged with: Bankruptcy

In re Colonial Warehouse, LLC An owner’s unrealized dreams for his company’s real property don’t justify requiring the holder of two unpaid notes to postpone foreclosure and wait for the owner to start trying to sell the property. The holder’s motion to dismiss is granted.

Tagged with: Bankruptcy

CresCom Bank v. Terry Even though the defendant-guarantor is the sole member of the defendant-debtor, the circumstances are not unusual enough to convince this court to stay proceedings against the guarantor.

Tagged with: Bankruptcy

Discover Bank v. Warren The plaintiff-creditor’s complaint specifically (1) alleges that, within 90 days of filing for bankruptcy, the defendant-debtor bought luxury goods (clothing) with the credit card issued by plaintiff; (2) alleges the amount of five purchases well in excess of the $600 statutory threshold; and (3) as to at least three retailers (the purchases from whom total more than $1,700) explains why those retailers sell luxury goods.

Tagged with: Bankruptcy

Ross v. R.A. North Development Inc. A district court did not err in dismissing a bankruptcy trustee’s adversary action against two real estate development companies and several of their sales and marketing affiliates on a claim that they jointly engaged in a scheme to sell properties at inflated prices in subdivisions in North and South Carolina and are liable for contribution for debtor realty company’s liabilities under the Interstate Land Sales Full Disclosure Act; the 4th Circuit says debtor is not entitled to contribution as a matter of law because it has yet to make any payment to aggrieved purchasers under the ILSA.

Tagged with: Bankruptcy

In re: Beach First National Bancshares Inc. A bankruptcy trustee for debtor corporation whose principal asset, a bank, went into receivership with the FDIC, may not assert derivative claims against the corporate directors for breach of fiduciary duties, as these claims properly belong to the FDIC; however, the 4th Circuit says the trustee may assert a claim for improper subordination of debtor’s interest in an LLC that owned real estate.

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In re Biddle In her affidavit attached to the debtors’ application for employment of counsel, the attorney failed to disclose that she owes money to a company of which debtor Larry Biddle is president, nor did she disclose that the debtors’ son represented her in legal matters in 2011 and 2012. Her failure to make these disclosures disqualifies her from representing the debtors in this case.

Tagged with: Attorneys Bankruptcy

Bhagani v. Doyle Even though acrimony and mistrust arose between the parties at a later date, plaintiff’s state-court judgment against the defendant-debtor is for a simple breach of contract. Defendant’s debt to plaintiff is discharged.

Tagged with: Bankruptcy Breach of Contract

Carrington Mortgage Services, LLC v. Riley Defendant is an insolvent Chapter 7 debtor; therefore, he has no standing to challenge the proofs of claim filed by plaintiff, the holder of the debtor’s notes and mortgages. Moreover, a borrower may not attack the validity of assignments of his loan due to his status as a third party to the assignment.

Tagged with: Bankruptcy Civil Practice Insurance Real Property Standing