In three separate Orders in the same case, which began as a Chapter 11 and later converted to Chapter 7, the Court looks at the allowance of administrative expenses.
Summary:
Because of the language of the lease, the bankruptcy court held that a lease had terminated (and consequently could not be assumed in a later bankruptcy case) following default and written demand by the Leasor of payment of past due rent within 10 days. Specific notice of termination of the lease was not required.
For a copy of the opinion, please see:Salon America- Date of and Requirement for Termina
The Trustee sought a 2004 Exam and documents from First Citizens Bank ("FCB"), based on a belief that the Debtor had used a checking account at FCB in connection with a Ponzi scheme. FCB sought to quash this discovery, arguing that the Trustee was on a fishing expedition to establish claims against FCB in relation to the alleged scheme.
Summary:
Despite testimony from the Debtors that they anticipated a substantial decrease in income due to loss of overtime, the court found that it was the circumstances at the time of the hearing that controlled. Taken with the Debtors’ retention of a boat, their failure to disclose tax refunds, overtime and bonuses, and continued 401k contributions, dismissal was appropriate.
For a copy of the opinion, please see:
Croatan Surf Club filed a single asset real estate Chapter 11, with such real estate subject to a lien by Royal Bank America ("RBA"). In compliance with 11 U.S.C. § 362(d)(3), Croatan filed a Second Amended Plan within 90-days of filing the bankruptcy, but RBA sought relief from stay, arguing that such plan was patently unconformable and was also nullified by the filing of a Third Amended Plan, outside of the 90-day window.
Summary:
Swartville owed TD Bank $1,615,000, secured by real property and guaranteed by the three principals of the company. Following default and rather than foreclosing on the property, TD Bank brought suit against the guarantors. Swartville then filed Chapter 11, proposing to surrender the real property in satisfaction of the debt. TD Bank objected that such plan was not filed in good faith, as it was intended solely to benefit the guarantors by forcing TD Bank to take the real property in reduction of the debt.
Applying the two-prong good faith test dev
Summary:
Dickerson filed Chapter 7 pro se, initially failing to disclose and exempt a pending lawsuit against Bell Partners for personal injuries and pecuniary losses. The Debtor eventually claimed the lawsuit as fully exempt, but the Trustee objected to the exemption of an pecuniary losses
Dickerson, the Trustee and Bell Partners subsequently agreed, both on the telephone and in emails, to settle the lawsuit for $15,000, consisting of $10,000 in exempt personal injury proceeds and $5,000 for pecuniary losses, that would be available for the bankruptcy estate. Di
The Debtor sought approval of the settlement of an Equitable Distribution, conducted in Maine, that would have allowed her to transfer funds into exempt IRAs, arguing that an Equitable Distribution rights are not property rights and therefore not an asset of the bankruptcy estate. The Trustee objected.
Summary:
Watkins provided a letter to Latigo Investments and the other plaintiffs, that he owned RDS Diversity Capital Corp ("RDS"), which had obtained $30 million in financing from Waddell and Reed, Inc., for the purchase of an ownership interest in MB2, a NASCAR team. RDS had never, in fact, been organized, did not have the ability to close the financing with Waddell and Reed, and had no ability to obtain other financing.
Accordingly, the bankruptcy court found that Watkins had acted "with substantial certainty that harm would re
