Summary: The Deed of Trust held by BB&T against real property references a promissory note dated September 7, 2005. The actual promissory note, however, is dated September 8, 2005. Relying on Beaman v. Head (In re Head Grading Co.), 353 B.R.122, 123- 24 (Bankr. E.D.N.C. 2006), the Debtors attacked the validity of the lien. BB&T first argued that because the Debtor had executed a Change in Terms Agreement, explicitly affirming the note, it should be estopped from now contesting the enforceability.

Summary: SRCR pledged a Piper Navajo Airplane as collateral for a loan to Park Sterling. After default on the loan, Park Sterling repossessed the airplane on February 3, 2012. SRCR filed a Chapter 11 bankruptcy on February 21, 2012.

Summary: MGHC filed a Proof of Claim, which was allowed as late-filed for $6 million, arising from lawsuit over a failed land development in New Jersey, where MGHC had provided funding to Mill Ridge Farms, whose principal, Kevin Wilk is is the managing member of Somerset Properties. MGHC had sued Mill Ridge Farms, Kevin Wilks and Somerset Properties alleging a civil conspiracy to convert property of and defraud MGHC, using funds intended for a New Jersey development project to finance the purchase of property in North Carolina for Wilk.

Summary: The Debtors guaranteed a $765,440.00 bridge loan with an adjustable interest rate, with range between 14% and 28%, and a 12 month term, with an option to extend the note for an additional 12 months. The Debtors filed Chapter 11 and proposed a 30-year amortization rate at 5% interest, to which the lender objected both as to the interest rate and the new term. At hearing, an expert in commercial real estate testified that there was no effective market for this loan, so the bankruptcy court turned to the formula approach outlined in Till v.

Summary: In December 2005, the Eichorns were seeking to purchase a home and entered hired Preferred Carolinas Realty (“PCR”) and James Allen to represent them in the process. The Eichorns wer shown property located in Wake Forest, North Carolina (''the property") and were told by PCR that it was owned by Toth Building Company, when it was, in fact, owned by Rodgers. Following negotiations through PCR, the Eichorns signed as sales contract with Toth, although Rodgers, the true owner of the property, had no knowledge of it.

Summary: The Debtor was involved in a lawsuit Gennaro Vitale, Gary Annino, and GG Mirage, LLC (a limited liability company owned by Annino) relating to business and financial issues which had arisen between those parties (the “GG Mirage lawsuit”). That lawsuit was settled, subject to a confidentiality provision.

Summary: The Debtor, who suffers from a learning disability, called telephone directory assistance asking to be connected with “legal aid.” The operator connected him with “Legal Aid Alternatives”, which then referred him Glenda Ocasio. Ms Ocasio charge the Debtor $399 to prepare his Chapter 7 bankruptcy petition. She told the Debtor that she would be representing him in the bankruptcy case, that he would be able to keep all of his assets; that he did not need an attorney; that he should file under chapter 7; and that all of his debts would be discharged. Ms.

Summary: In 2005, the Debtor paid Raleigh Plumbing & Heating (“RPH”) by check for a residential remodeling project for which the Debtor was a contractor. RPH confirmed with the Debtor’s bank the availability of funds and completed work. Three days later, RPH received notice that the Debtor had placed a stop payment on the check. RPH brought civil suit against the Debtor later in 2005, obtaining a judgment. In 2011, the Debtor filed Chapter 13 and RPH commenced an Adversary Proceeding seeking to have its claim declared non-dischargeable pursuant to 11 U.S.C.

Summary: Virginia Brands brought suit against Kingston Tobacco originally in Virginia state court, but the matter was removed to the U.S. District Court for the Western District of Virginia. Following a Motion to pierce the corporate veil of Kingston Tobacco, Kingston filed a Chapter 7 bankruptcy and sought to have the matter removed to the Bankruptcy Court for the Eastern District of North Carolina. The bankruptcy court denied this motion to remove, holding that 11 U.S.C.

Summary: Cashcall sought to withdraw its previously filed proof of claim and the Debtor objected, as such withdrawal would deprive the bankruptcy court of jurisdiction to hear the objection to claim and other matters brought in an Adversary Proceeding. Applying Bankruptcy Rule 3006, the bankruptcy court held that as the Debtor had filed an Adversary Proceeding, withdrawal of the Proof of Claim would prejudice the Debtor by eliminating any jurisdiction the bankruptcy court had, subjecting the Debtor’s counterclaims to litigation in state court and arbitration.