Tag: good faith

Bankr. M.D.N.C.: In re Calloway- Domestic Support Obligations and Good Faith in Chapter 13

Summary:

Ms. Calloway divorced Mr. Bowles and shortly before a final judgment was entered in their equitable distribution proceeding, she filed Chapter 13. Just prior to Ms. Calloway’s bankruptcy filing, the state court judge circulated a preliminary ruling to the parties via email, stating that he believed an unequal distribution of the marital assets in favor of Mr. Bowles would be equitable and that Ms. Calloway would be required was to pay a total of $50,514 by means of monthly payments of $300, due to the her liquidation of two retirement accounts, which had a total value of roughly $31,000. Additionally, since their separation, Ms.… Read More

Tagged with: , , ,

Bankr. E.D.N.C.: In re Edwards- Dismissal under 11 U.S.C. § 707(a)

Summary:

Mr. and Dr. Edwards, whose combined monthly gross income as health care professionals is $25722.67, filed Chapter 7, listing nearly $850,000 in general unsecured debts, which were primarily business debts. Dr. Dori Thomas, with whom Dr. Edwards had previously been in medical practice and was a co-guarantor, and Wells Fargo, which held a third lien for $695,000 against property, sought dismissal of the case under 11 U.S.C. § 707(a), as § 707(b) did not apply since the Edwards did not have primarily consumer debts.

Following In re Marino, 388 B.R. 679, 682 (Bankr. E.D.N.C. 2008), the bankruptcy court began that “[c]ause for dismissal under § 707(a) has been held to include a lack of good faith in filing the petition.” The factors from Marino include:

1.… Read More

Tagged with: , ,

Bankr. M.D.N.C.: In re Carter- Standing in Involuntary Bankruptcy; Good Faith in Filing Involuntary Bankruptcy

Summary:

The Debtor caused a fatal motor vehicle accident while under the influence and was subsequently pleaded guilty to felony death by motor vehicle. At the time of the collision, the Debtor was covered by his own insurance with State Farm and the Allstate insurance policy held by the owner of the car the Debtor was driving. The decedent’s estate settled with both Allstate, but after being unable to reach terms with State Farm, ultimately obtained a wrongful death verdict for approximately $2.8 million. When collection efforts failed, the Estate commenced an involuntary Chapter 7, with the Trustee employing special counsel to pursue automobile liability claims against State Farm and Allstate.… Read More

Tagged with: , , ,

Law Review: LoPucki, Lynn- House Swaps: A Strategic Bankruptcy Solution To the Foreclosure Crisis

Abstract:

Since the price peak in 2006, home values have fallen more than 30%, leaving millions of Americans with negative equity in their homes. Until the Supreme Court’s 1993 decision in Nobelman v. American Savings Bank, the bankruptcy system would have provided many such homeowners with a remedy. They could have filed bankruptcy, discharged the negative equity, committed to pay the mortgage holders the full values of their homes, and retained those homes. In
Nobelman, the Court misinterpreted reasonably clear statutory language and invented legislative history to resolve a 3-1 split of circuits in favor of the minority view. The Court ruled that debtors could not modify even the unsecured portions of the mortgages on their principal residences.… Read More

Tagged with: , ,

Bankr. E.D.N.C.: In re Croatan Surf Club- Chapter 11 Plan for Single Asset Real Estate must be Filed within 90-days, but can be amended

Summary:

Croatan Surf Club filed a single asset real estate Chapter 11, with such real estate subject to a lien by Royal Bank America (“RBA”).  In compliance with 11 U.S.C. § 362(d)(3), Croatan filed a Second Amended Plan within 90-days of filing the bankruptcy, but RBA sought relief from stay, arguing that such plan was patently unconformable and was also nullified by the filing of a Third Amended Plan, outside of the 90-day window.

The bankruptcy court, however, held that te Second Amended Plan was not patently unconformable.  § 362(d)(3) only require filing of such a plan, not actual confirmation of the plan. … Read More

Tagged with: , ,
Top