While several North Carolina bankruptcy courts have asserted that "[n]ot only is there no legislative history for § 1C-1601, In re Ragan, 64 B.R. 384, 387 (Bankr. E.D.N.C. 1986), this may be merely received wisdom that was not actually researched.
Gabiddon Builder proposed Subchapter V Plan in which it would sell the lot it owns and to use the net proceeds to pay creditors $10,000 each with the remainder of their claims to be paid over the balance of the Plan. Gabiddon Builders would then use the balance of the net proceeds to purchase a second lot and to build a 4,300 square foot house on that lot, from which it could then sell and use those proceeds to continue to fund the Plan.
Bestwall sought to have a Personal Injury Questionnaire ("PIQ") sent to all asbestos claimants pursuant to Rule 2004 to which the Claimants Committee objected. The bankruptcy court found that the PIQ created no undue hardship and was consistent with other similar orders and overruled the objection. The Claimants Committee appealed.
Mortgage cramdown has been proposed as a mechanism to avoid mortgage foreclosures in times of crisis. In this restructuring, the underwater portion of the mortgage is treated as unsecured debt and can be discharged during Chapter 13 bankruptcy. To quantify the ex-post effects of bankruptcy discharge in cramdown courts, we use a new dataset of district courts that allowed mortgage cramdown over the period from 1989 to 1993.
