At the NACBA Members-Only Fall Workshop in Maui on October 9, 2026, I joined Scott J. Etish, Vice President of Advanced Markets at Coventry, and Kara Gedron of NACBA, for a presentation titled Life Settlements and Bankruptcy: Unlocking Hidden Value in Life Insurance.
The presentation addressed a potentially surprising development for consumer bankruptcy attorneys: A term life insurance policy with no cash surrender value may nevertheless have substantial value on the secondary market.
At the recent NACBA Workshop in Maui, I was joined by my associates, Melissa Betron and Ryan Srnik, from the Law Offices of John T. Orcutt, P.C., for a presentation entitled Wipe Out! Surfing Through Preferences, Fraudulent Transfers, and Avoidance Actions.
I generally do not comment on motions and responses filed in bankruptcy cases. I usually wait for a judicial decision, both because that gives the dispute some resolution and because pleadings, by definition, present the parties’ competing positions rather than the court’s conclusions.
But when a towing company files bankruptcy and then asks the Bankruptcy Court to order someone else to give its vehicles back, the irony is a little too much to resist.
In Bailey v. Tedeschi, Adv. Pro. No. 25-00030-5-PWM (Bankr. E.D.N.C. Sept. 16, 2026), Judge Pamela McAfee held that a $171,000 debt arising from a failed interior-design project was dischargeable under 11 U.S.C. § 523(a)(2)(A). The Baileys had paid AG Design more than $163,000 for furniture that was not fully ordered or delivered, but the court found no proof that Tedeschi made a knowingly false representation or intended to defraud them when the money was received. Bailey v. Tedeschi (1)
While Discover Bank v. Mustafaa, No. COA26-284 (N.C. Ct. App. Aug. 5, 2026), is unpublished and not controlling authority, it is still a useful warning for consumer attorneys: counterclaims in a collection suit can be compulsory, and a late attempt to add them can cost the client those claims entirely.
