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By Ed Boltz, 5 August, 2014

Bankr. E.D.N.C.: In re Long - Iqbal/Twombley Pleading for § 727(a)(2)(A)

Summary: Creditor, Two Olives, Inc., sought denial of the debtors’ discharge pursuant to 11 U.S.C. § 727(a)(2)(A) , asserting that“the debtor, with intent to hinder, delay, or defraud a creditor . . . has permitted to be transferred . . .
By Ed Boltz, 1 August, 2014

Bankr. E.D.N.C.: In re Morris- Chapter 13 Plan Length Cannot Exceed 60 Months from Confirmation

Summary: Confirmation of the Debtor’s Chapter 13 plan was delayed for 15 months due to an adversary proceeding to cram-down a residential mortgage held by JPMorgan Chase. Following dismissal of the adversary proceeding, the Debtor proposed a plan that would have run for 60 months from confirmation. Because that plan would have run for a total of 75 months from the first §341 Meeting of Creditors, the Trustee objected. Finding that this issue had already been addressed by the 4th Circuit in West v. Costen, 826 F.2d 1376, 1378 (4th Cir.
By Ed Boltz, 5 June, 2014

Bankr. E.D.N.C.: In re Bradshaw- 11 U.S.C. § 1322(b)(2) Anti-modification inapplicable if Mortgage Takes Escrow Account as Collateral

Summary: The Debtors principal residence was found to be worth $136,000 with a first mortgage of $116,254.11 held by PNC and a second mortgage, held by Asset Ventures, LLC, in the amount of $27,000. This second mortgage additionally took as collateral the Debtors' escrow account. Following In re Bradsher, 427 B.R. 386, 388 (Bankr. M.D.N.C. 2010), the court held that as an escrow account is additional personal property, the anti-modification provisions of 11 U.S.C.
By Ed Boltz, 3 June, 2014

Bankr. E.D.N.C.: In re Tanglewood Farms- Reasonably Equivalent Value in Satisfaction of Joint Debt; Account Stated

Summary: The Trustee sought to avoid payments made to Craft Air Services of $60,000 for services that were provided to the Debtor Tanglewood Farms. The dispute turned on whether the obligation to Craft Air was solely the liability of James Winslow, the 100% owner of Tanglewood Farms, or also of Tanglewood Farms itself.
By Ed Boltz, 19 May, 2014

Bankr. E.D.N.C.: In re Amerson- Violation of the Automatic Stay; Termination of Automatic Stay in an Individual Chapter 11

Summary: Despite having received notice of the bankruptcy filing and notice of the proof of claims deadline well before the expiration of the deadline and approximately thirteen months prior to confirmation of the Amerson's Second Amended Plan, Flanders, who was represented by counsel during much toe the Chapter 11 proceeding, did not take any action in the bankruptcy proceeding to request relief from the automatic stay or to file a proof of claim.
By Ed Boltz, 5 May, 2014

Bankr. E.D.N.C.: Angell v. Larabee ( In re Tanglewood Farms)- Cure Payments not in the Ordinary Course of Business

Summary: The Trustee sought turnover of funds from the Mary Larabee, the wife of the cousin of the 100% owner of Tanglewood Farms) as prefential transfers under 11 U.S.C. § 547, 550 and 551.
By Ed Boltz, 2 May, 2014

Bankr. E.D.N.C.: Church v. Nabors - Standing of Owner of Corporation to Bring § 523(a)(6) Claim on Individually rather than by the Corporation

Summary: Church, who is married to the debtor, Nabors, ex-wife, owns Private Ridge Wealth Management, LLC (“PRWM”). Nabors filed a complaint with the Better Business Bureau, making allegations against PRWM, which Church alleged cost PRWM $6,000 in revenue. Church then in his individual capacity, brought suit against Nabors for making a false claim and obtained a default judgment holding that Nabors had caused malicious injury to PRWM.
By Ed Boltz, 1 May, 2014

Bankr. E.D.N.C.: In re Black- UDTPA Claims not Pre-empted by 11 U.S.C. § 362

Summary: Black’s Chapter 13 plan provided for the mortgage to Chase to be paid as a conduit, through the Trustee. The Motion for Confirmation filed by the Trustee, however, inadvertently provided for direct payment of the mortgage by Black, without reduction of the plan payment. This disconnect lead to the completion of the Chapter 13 plan on November 29, 2012, only four months after confirmation.
By Ed Boltz, 28 April, 2014

Bankr. E.D.N.C.: In re Eng - Impairment of De Minimus Class; Nature as a Fixture

Summary: The Debtor purchased two gas stations, against which Petromax held Deeds of Trust, including against fixtures, in the amount of more than $2.4 million. Upon filing Chapter 11, the Debtor valued the gas stations at $1.3 million. The Debtor’s second proposed plan had eight classes of claims, but Class 7, which consisted of only $5,760.52 in unsecured claims, was the sole impaired class in favor of the plan, with the City of Greenville, holding a claim for $915.42, being the lone claimant to vote.
By Ed Boltz, 7 April, 2014

Bankr. E.D.N.C.: In re Davis - Unclean Hands with Loan Modification and Motion for Relief from Stay

Summary: The Debtors were delinquent on their Chapter 13 plan payments, which included disbursements to Green Tree for a mobile home and land. Accordingly, on February 5, 2014, Green Treee filed a Motion for Relief from Stay. On February 1, 2014, however, Green Tree sent to the Debtors directly a letter offering to provide assistance with delinquent payments.

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