Tag: dismissal

Bankr. W.D.N.C.: In re Moe’s Rx Clinic, Inc.- Dismissal of Pharmaceutical Asset Case


A pharmacy filed Ch. 7, with its primary asset being $40-50,000 in drug inventory. Upon the motion of the Trustee, the court found that the FDA and NC Pharmacy Board had specific procedures regarding the proper handling and disposal of prescription drugs that those entities were better able to follow than the Trustee. Accordingly, as there were no other assets, dismissal was proper to allow the Pharmacy Board to dispose of the drugs. (This case was subsequently appealed, but that was dismissed with the agreement of the debtor.)


It does not appear that either abandonment of these drugs by the bankruptcy estate pursuant to 11 U.S.C.… Read More

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Bankr. E.D.N.C.: In re McGregor – Lack of Jurisdiction to Enforce Order following Dismissal


Turnover of a vehicle held by a Raeford Collision and subject to a possessory mechanic’s lien was resolved subject to a Consent Order, which required the MacGregor to provide the title to the vehicle so that a lien could be recorded with the North Carolina DMV. When the MacGregor’s Chapter 13 case was dismissed and they failed to produce the title, Raeford Collision sought an order “divesting title” or to sequester the vehicle and to hold the McGregors in contempt.

The bankruptcy court held that, while it would have had authority to grant relief in an open case, because a dismissal is a final appealable order and neither had a reservation of jurisdiction nor had been appealed, the bankruptcy court not able to “affect the rights of litigants before it .… Read More

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Bankr. E.D.N.C.: In re Clayton Professional Center, L.L.C.- Dismissal or Conversion of Chapter 11 Case


The Debtor filed a voluntary Chapter 11 case, but PNC Bank, the largest unsecured creditor, moved to dismiss the bankruptcy. The Debtor moved to convert to Chapter 7. The Bankruptcy Administrator supported dismissal.

The Bankruptcy Court first found that und 11 U.S.C. § 1124(b)(4) there were sufficient grounds to convert of dismiss the case. In determining whether conversion or dismissal would be in the best interest of the estate, the Bankruptcy Court held, based on the Debtor’s admissions, that it would require at least six months to market and sell its assets, during which time a Chapter 7 Trustee would need to manage, rent and maintain the property, and based on PNC’s unwillingness to consent to the use of cash collateral, a Chapter 7 Trustee would have no funding to adminster such assets and would be forced to liquidate quickly.… Read More

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Bankr. MDNC: Wallace- No Reinstatement of Case following dismissal for failure to timely file Schedules‏

Debtors failed to file complete schedules within 45 days due to mistake by new employee at attorney’s firm. Despite this the court held that “[i]f a chapter 13 debtor fails to file all of the information required under section 521(a) (1) within 45 days after the date of the filing of the petition, section 521(i) provides that the case “shall be automatically dismissed effective on the 46th day after the date of the filing of the petition.”
Since the Debtors in this case did not file these documents within 45 days after the date of the filing of the petition, nor was any extension of time for the filing of such documents sought or granted in this case within 45 days after the date of the filing of the petition”dismissal of this case
was mandated by section 521(i).”

The Court further held that §521(i) “is a component of a strict statutory regimen that was adopted when section 521 was revised by BAPCPA.… Read More

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