Summary: The Youngbloods are guarantors of several loans between Youngblood Construction and BB&T. Following the filing of the Chapter 11, Youngblood Construction brought a Motion to Extend Stay for the Youngbloods individually.
The Bankruptcy Court recognized that in "unusual circumstances" the Debtor and a third party may share such common identity that judgment against one may "in effect be a judgment or finding against the debtor." Kreisler v. Goldberg, 478 F.3d 209, 213 (4th Cir. 2007) (citing A.H.
By Ed Boltz, 26 March, 2012
Summary: Relying on In re Beaudet, 455 B.R. 671, 673 (Bankr. M.D. Tenn. 2011), the bankruptcy court held that while Ocwen was entitled to include future escrow amounts in the on-going monthly payment, the pre-petition escrow shortage should instead be included in the arrearage claim.
By Ed Boltz, 26 March, 2012
Summary: Vericrest sought relief from the automatic stay and the Chapter 7 Trustee objected. In the present case, the note contains two allonges purporting to transfer the Note by indorsement. The first purports to transfer the Note from Flagstar Bank, F.S.B. To LSF7 Bermuda NPL V Trust. The second allonge is blank indorsement from Bermuda Trust.
To prevail on a Motion for Relief from Stay where there is no issue as to the sufficiency of equity to adequately protect it interests, the moving party must show "[t]he [d]ebtor owes a debt to it, that it poss
By Ed Boltz, 26 March, 2012
Summary: 11 U.S.C. § 101(31) has a list of third-parties with a statutorily defined relationship with the Debtor, which are called "statutory insiders". This definition, however, use the word "includes", which makes the list non-exclusive, with such being considered "non-statutory insiders." (The District Court notes the oddity of the Bankruptcy Code statutorily providing for non-statutory insiders.)
By Ed Boltz, 13 February, 2012
Summary:
ECP was retained, prior to the bankruptcy filing by the Debtor, to sell certain of the Debtor's properties. The listing agreement included a provision that the Debtor would seek to employ ECP in the event bankruptcy was filed.  ECP was, in fact, approved by the Court to sell the properties. Unfortunately, following the objection by the lienholder, the sale of the properties was ultimately not approved, as it did not satisfy the requirements of 11 U.S.C.
By Ed Boltz, 13 February, 2012
Summary:
While the secured classes in the Chapter 11 accepted the plan, none of the unsecured creditors cast ballots and the class was deemed to have rejected the plan. The Debtor was, however, given an additional 14 days to obtain ballots. Otherwise, the Debtor would be allowed to file an amended plan, where the principal could purchase the equity interest in the Debtor.
For a copy of the opinion, please see:
By Ed Boltz, 13 February, 2012
Summary:
The Debtor owned real property with her husband as tenants by the entireties, but then separated. Pursuant to a Separation Agreement, the Debtor signed a Quit Claim Deed granting the property to her husband in 2005 and the parties divorced in 2006. She later filed Chapter 13 on December 3, 2008, but, apparently unbeknownst to the Trustee, the Quit Claim Deed was not recorded until January 9, 2009, one day after the §341 Meeting of Creditors.  The Debtor’s confirmed plan abandoned her interest in the property to the secured creditors. In 2010, she converted to
By Ed Boltz, 13 February, 2012
Summary:
The Debtor proposed a plan that would have paid roughly a 3.8% dividend to general unsecured claims, but would have separately classified his non-dischargeable student loans and paid them in full. The general unsecured class did not accept this plan.
11 U.S.C.
By Ed Boltz, 13 February, 2012
Summary:
Kenneth Jones filed a Chapter 13 bankruptcy on behalf of his minor nephew in 2003. After finding no evidence that Jones was his nephew's court appointed guardian, the Trustee moved for the appointment of a guardian ad litem pursuant to Bankruptcy Rule 1004.1. Prior to that motion being heard, however, the case was dismissed for non-payment.
Recently, however, the Nephew (now presumably having reached his majority) experienced difficulties obtaining credit due to this bankruptcy. Accordingly then moved to have the bankruptcy re-opened and then dismissed ab initio,
By Ed Boltz, 30 January, 2012
Summary:
Smithville Crossings’ Chapter 11 plan was confirmed wherein the Richardsons, the Debtor’s sole equity owners, agreed to grant a lien to creditor Rialto of unencumbered real estate, if the Richardsons were able to retain their ownership in Smithville Crossings. The plan provided that the Richardsons would pay $10,000 to purchase that ownership interest and invited competing bids. The highest bidder, however,  was neither the Richardsons nor Rialto, but a subsidiary of Rialto.
The bankruptcy court held that such an equity auction following confirmation was permitte