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By Ed Boltz, 12 February, 2019

Bankr. M.D.N.C.: Evapco, Inc. v. Peterson- Denial of Discharge and Nondischargability for Willful and Malicious Injury; Collateral Estoppel

Summary:

After selling his business to Evapco, Mr. Peterson continued to work for Evapco subject to a non-compete agreement.  Despite this, Mr. Peterson formed other entities which Evapco asserted violated such agreement and defrauded Evapco.  Evapco brought suit in Maryland, with the court there entering a default judgment as a sanction against Mr.

By Ed Boltz, 8 October, 2018

Bankr. M.D.N.C.: In re Randle- Default Judgment for Violation of Automatic Stay

Summary:
The Randles fell behind on their car payments and Saga Auto Sales repossessed the Randles’ 2011 Cadillac Escalade.  Upon payment of $2,100, Saga returned the vehicle on December 2, 2017.  With their next payment due on December 9,   2017, the Randles filed Chapter 13 on December 8, 2017.  Saga again repossessed the vehicle on December 10, 2018, also taking possession of Ms.
By Ed Boltz, 5 October, 2018

Bankr. M.D.N.C: Northen v. MDC- Related to Subject Matter Jurisdiction

Summary:
On remand from the 4th Circuit, where Jason McDonald and MDC first raised the issue of subject matter jurisdiction, the bankruptcy court held that the actual debtor in this case held an ownership interest in MDC, such was, even under the broad “related to” jurisdiction,  insufficient to allow the bankruptcy court to determine what assets were  owned by that corporate entity.  Otherwise:
Under such an expansive interpretation of “related to” jurisdiction, if a debtor owned a single share of a corporation
By Ed Boltz, 5 October, 2018

Bankr. M.D.N.C.: In re Miles- Untimely Objection to Venue 

Summary:
Even though the Debtors admitted that they did not meet th venue requirements of 28 U.S.C.  § 1408, the bankruptcy court held that Rule 1014 required dismissal or transfer of a case filed in an improper district only on the filing of “timely” objection by a party in interest.  Here, First New York Federal Credit Union did not object to venue until after the  §341 Meeting of Creditors, payments had been collected through wage garnishment, and a proposed plan was pending, and then only on the 2nd to last day to object to Confir
By Ed Boltz, 30 November, 2017

Bankr.  M.D.N.C.: In re Young- Denial of DischargeBankr.  M.D.N.C.: In re Young- Denial of Discharge

Summary: In their Chapter 7, the Youngs agreed, in a court approved settlement,  to allow the sale of their residence, splitting the net proceeds  equally with the Trustee and were to keep “only those furnishings necessary to furnish their new residence”, with the remainder of their personal property  to be auctioned.  After initially identifying the property they were to retain with the Trustee’s auctioneer, the Young sold all of their additional property with a different auction company, using the funds to pay for moving costs.  It appears that the
By Ed Boltz, 26 November, 2017

E.D.N.C.: Spoor v. Barth- Denial of Sanctions and Vexatious Multiplication of Litigation

Summary: Mr. Barth commenced an adversary proceeding seeking a declaratory judgment that various state court actions by Mr. Spoor could have been brought by the bankruptcy trustee, who had previously signed a release of such actions, and that Mr. Spoor should be required to dismiss those actions. The bankruptcy court instead dismissed Mr. Barth’s adversary proceeding on the grounds that such relief was prohibited by the Anti-Injunction Act, 28 U.S.C. § 2283. The bankruptcy court declined, however, to award the sanctions sought by Mr.
By Ed Boltz, 17 November, 2017

Bankr. M.D.N.C.: In re Calloway- Domestic Support Obligations and Good Faith in Chapter 13

Summary: Ms. Calloway divorced Mr. Bowles and shortly before a final judgment was entered in their equitable distribution proceeding, she filed Chapter 13. Just prior to Ms. Calloway’s bankruptcy filing, the state court judge circulated a preliminary ruling to the parties via email, stating that he believed an unequal distribution of the marital assets in favor of Mr. Bowles would be equitable and that Ms.
By Ed Boltz, 17 November, 2017

Bankr.  M.D.N.C.: In re Price- Separate Classification of Student Loans in Chapter 13Bankr.  M.D.N.C.: In re Price- Separate Classification of Student Loans in Chapter 13

Summary: The Prices, who are above median income debtors, but nonetheless have negative projected disposable monthly and no non-exempt assets, proposed an estimated 15% dividend to the class of dischargeable general unsecured creditors, which totaled $11,728.38.  They also proposed to separately classify the  $10,463.48 claim by Navient for non-dischargeable student loans.  The Chapter 13 Trustee supported confirmation, but the Bankruptcy Administrator filed a limited objection to such treatment. The bankruptcy court first addressed whether the prohibition in&n
By Ed Boltz, 9 November, 2017

Bankr. M.D.N.C.: In re Macy- Reaffirmation Is Voluntary for Both Debtor and Creditor

Summary: Following receipt of an Reaffirmation Agreement from World Omni, the Macys completed and signed the statutorily prescribed form and both returned the documents to World Omni and filed a copy with the bankruptcy court. The bankruptcy court sua sponte held that the filing of the Reaffirmation “absent a signature of an authorized representative” of World Omni was improper and of no binding effect, despite that it may be necessary for a debtor to establish that the requirements of 11 U.S.C.
By Ed Boltz, 22 August, 2017

Bankr. M.D.N.C.: In re Washabaugh- Revocation of Discharge

Summary: Before filing a voluntary Chapter 7 bankruptcy, Ms. Washabaugh was employed by Wake Forest Baptist Health/N.C. Baptist Hospital, where she made personal purchases using her employer’s credit card without reimbursement, also using that credit card and gift cards to make purchases from her own Thirty-One handbag business for gifts for volunteers and other employees. Ms. Washabaugh was terminated for these purchases, with the hospital filing an employee dishonesty claim with National Union Fire Insurance for $1,009,347.00. When Ms.

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