Judge Louise Flanagan ruled on two key post-certification motions in this putative class action concerning alleged abusive debt collection practices targeting North Carolina homeowners’ associations (HOAs).
In this extensive Chapter 11 adversary proceeding, the Bankruptcy Court for the Eastern District of North Carolina ruled on cross-motions for summary judgment concerning a Merchant Cash Advance (MCA) agreement between the debtor, Williams Land Clearing, and Apex Funding Source. The court held that the MCA was a loan, not a true sale, and that it was criminally usurious under New York law with an effective interest rate of 101.1% per annum. As such, the MCA agreement was void ab initio.
James Alston, claiming to have been assigned FDCPA claims from a third party (Louis Greene), brought various claims against National Credit Systems, Inc. under the Fair Debt Collection Practices Act (FDCPA).
The District Court affirmed the Bankruptcy Court’s denial of confirmation of Bobby Goddard’s Chapter 13 plan, holding that the plan was not proposed in good faith under 11 U.S.C. § 1325(a)(3), despite the debtor’s full compliance with the means test under § 1325(b).
Goddard, an above-median income debtor and Army veteran suffering from PTSD, proposed a plan in which he would retain three secured vehicles—a Corvette, a GMC Sierra pickup truck, and a Genesis sedan—while making minimal distributions to unsecured creditors.
Following the 4th Circuit decision in In re Morgan a Chapter 7 trustee can reach entireties property to pay IRS debt even without a pre-existing tax lien.
