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By Ed Boltz, 13 December, 2016

Bankr. M.D.N.C.: In re NC & VA Warranty-Informal Proof of Claims

Summary: This is the latest of a line of decisions resulting from a complicated set of commercial transactions (which this consumer bankruptcy blog will leave for others to explicate). It does, nonetheless, have few nuggett of use in consumer cases, specifically in Footnote 1 which recognizes that “it is possible that the Counterclaim constitutes a claim filed against the estate.” Cf. Carroll v. Farooqi, 486 B.R. 718, 722-23 (Bankr. N.D.
By Ed Boltz, 13 December, 2016

Bankr. E.D.N.C.: In re Sweeney- Accession to Property and Mobile Home Valuation

Summary: This case involved a valuation duel between Ms. Sweeney and Ditech over a 1999 Horton Mirage II 24' x 52' mobile home, which all parties agreed was personal property. At the valuation hearing. Ms. Sweeney testified both as to her belief that the property suffered from “extensive water damage” and general disrepair, having a value of $10,000-$11,000. Ms. Sweeney based this on the county tax value of $9,850. Ditech presented Mr.
By Ed Boltz, 13 December, 2016

E.D.N.C. and Bankr. E.D.N.C: Jones v. Jones - Characterization and Relief from Stay regarding Equitable Distribution

Summary: Bankruptcy Court Characterization of Equitable Distribution Awards Cheryl Jones brought motions against the Debtor, her ex-husband, Sean Jones, seeking relief from the stay and for determination of Domestic Support Obligation, with the primary question being whether the family court’s Equitable Distribution Order award of $116,182 from the debtor’s 401(k) plan and $63,736 from the debtor’s retirement account were in the nature of a domestic support obligation, pursuant to §§ 101(14A) and 523(a)(5), or
By Ed Boltz, 11 December, 2016

Bankr. E.D.N.C.: Bornman v. Thompson Pump & Manufacturing Co.- Motion to Seal Denied

Summary: The parties in this case, where the Plaintiff alleged that personal identifying information had been disclosed in a Proof of Claim, reached a settlement but sought a Motion to Seal in order so that such settlement would not be construed as binding for similar claims. The bankruptcy court, however, found that 11 U.S.C.
By Ed Boltz, 11 December, 2016

Bankr. W.D.N.C.: In re Green- Date of Transfer of Cashier’s Check Determines Ownership

Summary: After the filing of her Chapter 7 bankruptcy, the Debtor found a cashier’s check payable to her ex-husband in the amount of $11,000.00. This check was not listed as an asset in the Debtor’s schedules, but her ex-husband was listed as holding a priority claim for $0.00 for alimony. The Debtor contended that this was for unpaid alimony and her ex-husband, in fact, had the sole allowed DSO priority claim for $15,000.00 in the case.
By Ed Boltz, 9 September, 2016

Bankr. M.D.N.C.: NC & VA Warranty v. Fidelity Bank- Judicial Notice and Judicial Estoppel

Summary: The bankruptcy court in this opinion begins by distinguishing between the judicial notice that a court may take of pleadings and proceedings in other courts and judicial estoppel. The bankruptcy court held that while a court cannot take judicial notice of the truth of facts alleged in those pleadings, it can nonetheless take judicial notice that such allegations were made. From the fact that such allegations had been made, the bankruptcy court then turned to determine whether such allegations judicially estopped a party in later proceedings.
By Ed Boltz, 17 August, 2016

Bankr. W.D.N.C.: In re Banner- Unauthorized Practice of Law by National Bankruptcy Law Firm

Summary: Ms. Banner filed a ‘bare bones’ Chapter 13 petition signed by her attorney, Joseph Kosko, who was a local partner in the law firm of Volks Anwalt, which solicited Banner as a client through direct mail. After missing numerous deadlines for filing the completed petition, ultimately the bankruptcy court held multiple contempt hearing regarding the representation by Kosko, Volks Anwalt, and its sole owner and managing partner, Jessica McClean.
By Ed Boltz, 2 August, 2016

Bankr. E.D.N.C.: In re Alvarez- Mortgage Servicing Claims

Summary: The Alvarezes purchased their home in 2007 and refinanced in 2009 with PNC Mortgage servicing the loan for Fannie Mae. At that time the mortgage documents provided that the Alvarezes would maintain homeowner's insurance and property taxes directly, without an escrow account. The Alvarezes began to have financial difficulties in 2012, but were denied mortgage assistance by PNC.
By Ed Boltz, 2 August, 2016

Bankr. E.D.N.C.: In re Phillips- Conversion from Chapter 13 to Chapter 7 does not Preclude Second Avoidance of Judgment Lien

Summary: The Phillips filed a Chapter 13 bankruptcy and successfully avoided the judgment lien held by McInnis. The Order allowing the avoidance provided that: 3. The Judgment lien of the McInnises is declared to be void and shall be removed of record upon the completion of the Chapter 13 Plan of the Debtors and entry of the discharge in this case pursuant to Section 506 of the Bankruptcy Code. 4.
By Ed Boltz, 2 August, 2016

Bankr. M.D.N.C.: In re Dean- Laches and Avoidance of Judgment Lien

Summary: Ferguson obtained a judgment in 2008 against the Robert Dean, who, with his then wife, Lisa Dean, subsequently filed a Chapter 7 bankruptcy in 2010. Believing that the real property was held as Tenants by the Entireties, the judgment lien was not avoided and the Deans received a discharge. Subsequently, the Deans divorced with Mr. Dean transferring his interest in the real property to Lisa and her new husband. When Lisa sought to refinance the real property in 2015, the judgment lien was discovered.

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