Summary:
After consulting with a bankruptcy attorney, the Debtors sold personal property at auction, receiving $14,000 in proceeds. Two days before filing Chapter 7, the Debtors used $12,000 to fund IRAs and the remainder for insurance and vehicle repairs. The Trustee sought to avoid the contributions to the IRAs as fraudulent conveyances.
Following, Ford v. Poston, 773 F.2d 52, 54 (4th Cir.
By Ed Boltz, 19 July, 2012
Summary:
Camp Flintlock, Inc.
By Ed Boltz, 19 July, 2012
Summary:
The Debtors own and operate a feed mill. Following initiation of foreclosure proceedings against 442.92 acres of land (which had been in the Debtors’ family for centuries!), the Debtors filed Chapter 11.
By Ed Boltz, 19 July, 2012
Summary:
Automotive Fiannce provided Ward’s car dealership with floor plan financing, which permitted the dealership to borrow funds to purchase cars for sale. The Automotive Finance would then hold a lien on such car, until the car, was sold and the dealership was required that it pay off the lien within 72 hours. Ward individually guarantied the obligations of the dealership under the floor plan agreement. At the time of filing the bankruptcy, the dealership had sold 4 car without paying of the liens.
By Ed Boltz, 19 July, 2012
Summary:
Trustee brought a preference action against Johnson Concrete Company (“JCC”) , a subcontractor of the Debtor on several construction projects. JCC argued that the “indirect transfer” theory of the “new value” defense to preferences in § 547(c)(1), as it would have filed a claim against the payment bonds in place for the projects.
Starting from Angell v. Pennington, Inc. (In re Partitions Plus of Wilmington, Inc.), No. 06-00148-8-JRL (Bankr. E.D.N.C. Mar.
By Ed Boltz, 19 July, 2012
Summary:
A tangle of multiple cases- Thomas Brown, Michael Barns , W. Watson Barns and David Woodard were directors of Brown Oil. Brown filed Chapter 11 on August 3, 2007, but that case was dismissed on November 30, 2011. An involuntary Chapter 7 was filed for Brown Oil on October 19, 2010. Michael Barnes filed Chapter 13 on July 19, 2011.
Etheridge Oil brought an adversary proceeding against Brown seeking to have his debt declared nondischargable pursuant to 11 U.S.C. § 523(a)(2) and (a)(6).
By Ed Boltz, 20 June, 2012
Summary:
In 2002, the Toomey sold real property located at 1124 Berwyn Way, Raleigh, to the Postons. At the time of the sale, the Property was encumbered by a deed of trust and, in addition, by a home equity line of credit (“HELOC”) with Central Carolina Bank (“CCB”), which was secured by a second deed of trust. At the closing of the sale, the first deed of trust was paid off and canceled of record. The Toomeys’ HELOC with CCB was paid down to zero but, unfortunately, the deed of trust securing the HELOC was not canceled and the HELOC account was not closed.
By Ed Boltz, 20 June, 2012
Summary:
The Debtor had, after purchasing a 3rd parties interest in an Illinois home, been given title to the home by his then fiance, Ms. Ward, subject to an agreement that he would reconvey the real property to her in the event he pre-deceased her or their relationship ended. So, of course, their relationship ended and he declined to reconvey the property to her. Ms. Ward then commenced a lawsuit in Illinois against the Debtor seeking reconveyance of the property and damages for breach of contract. The Debtor filed Chapter 7, during which Ms.
By Ed Boltz, 20 June, 2012
Summary:
In the Debtor’s first Chapter 13 case, the Debtor and his homeowner’s association entered into a consent order denying the homeowner’s motion for relief, subject to the Debtor complying with specific conditions. Failure to comply would result in the lifting of the automatic stay. The Debtor’s bankruptcy was shortly thereafter dismissed and the Debtor refiled. The homeowner’s association contended that the consent order in the previous case was res judicata and it was thereby entitled to relief from the automatic stay in the second case.
By Ed Boltz, 20 June, 2012
Summary:
The Debtor, following some corrective amendments, had $731.36 of disposable income showing on Form B22. Because of a long commute in a pick-up truck with poor mileage, the Debtor claimed $612.00 a month of additional transportation expenses as a special circumstance under 11 U.S.C. § 707(b)(2)(B)(i).