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By Ed Boltz, 11 September, 2017

Bankr. W.D.N.C.: In re Mergentime- Transferred Social Security Benefits

Summary: Ms. Mergentime received $62,417.80 as a lump sum payment for retroactive Social Security benefits, approximately 4 months after filing her Chapter 7 bankruptcy. She had not disclosed those potential funds in her petition. Pursuant to her equitable distribution agreement, she paid half of those funds to her ex-husband. The Trustee sought to recovery those transferred funds and to deny Ms.
By Ed Boltz, 28 August, 2017

Bankr. E.D.N.C.: In re Hutton- Perfection of Judgment Lien against Motor Vehicle Following Levy

Summary: Mr. Hutton’s vehicles were seized in a levy by the Onslow County Sheriff’s Department in executing on a judgment obtained by Principis. After filing bankruptcy, Mr. Hutton sought turnover of the vehicle and asserted that the possessory lien held by Principii had not been perfected by recordation with the North Carolina DMV. In narrowly construing and distinguishing several decisions from the North Carolina Supreme Court and Court of Appeals, the bankruptcy court rejected the argument by Principis that recordation is required to perfect a lien under N.C.G.S.
By Ed Boltz, 27 August, 2017

Bankr. E.D.N.C.: In re Green - Determination of Noncontingent and Liquidated Debts for Eligibility under 11 U.S.C. § 109(e)

Summary: In determining whether Mr. Green was eligible, under 11 U.S.C. § 109(e), to be a Chapter 13 debtor due to debt limitations, the bankruptcy court reviewed several types of claims to determine whether each was “noncontingent” or “liquidated”. While determination of whether a debt is “noncontingent” or “liquidated” is a question of law, See In re Goralnick, 81 B.R. 570, 571 (9th Cir. BAP 1987) the amount of a debt is a question of fact.
By Ed Boltz, 25 August, 2017

Bankr. E.D.N.C.: In re Taylor- Private Citizens Enforcing Federal Statutes Not Exempt from the Automatic Stay as Governmental Units

Summary: In a case involving a hog farm and related claims of environmental pollution, Sound Rivers, Inc.’s and Waterkeeper Alliance, Inc. sought an order confirming that the automatic stay does not apply or, in the alternative, for relief from the automatic stay in order to continue their lawsuit filed in the federal district Court.
By Ed Boltz, 25 August, 2017

Bankr. E.D.N.C.: In re Regenhardt- Homestead Exemption for Adjacent Property

Summary: Mr. and Mrs. Regenhardt sought to claim their residence and the adjacent property as fully exempt under the available homestead exemption, with the Trustee asserting that the adjacent property was not part of the homestead and only partially exempt using their wildcard. In reviewing the case law from the district, specifically In re Stox, No. 10-08123-8-RDD, 2011 WL 5902882, at *6 (Bankr. E.D.N.C. May 27, 2011) and In re Rogers, No. 16-02884-5-JNC, 2016 WL 5794707, at *4 (Bankr. E.D.N.C. Oct.
By Ed Boltz, 23 August, 2017

Bankr. E.D.N.C.: Burgess v. Citimortgage, Inc. - Rooker-Feldman Doctrine & Collateral Estoppel Effect of Foreclosure

Summary: Mr.
By Ed Boltz, 23 August, 2017

Bankr. E.D.N.C.: In re Edwards- Dismissal under 11 U.S.C. § 707(a)

Summary: Mr. and Dr. Edwards, whose combined monthly gross income as health care professionals is $25722.67, filed Chapter 7, listing nearly $850,000 in general unsecured debts, which were primarily business debts. Dr. Dori Thomas, with whom Dr. Edwards had previously been in medical practice and was a co-guarantor, and Wells Fargo, which held a third lien for $695,000 against property, sought dismissal of the case under 11 U.S.C. § 707(a), as § 707(b) did not apply since the Edwards did not have primarily consumer debts. Following In re Marino, 388 B.R.
By Ed Boltz, 22 August, 2017

Bankr. E.D.N.C.: In re Ward- Debtor's Independent Knowledge of Supports Tax Value

Summary: In a counter to McDuffie v. West (In re West), No. 5:15-CV-557-FL, 2016 WL 4186853 (E.D.N.C. July 15, 2016), where the debtor testified solely as to the tax value for property, "but ... failed to provide any competent independent knowledge to establish as a basis for a court to accept the third-party assessment appraisal as the actual value of the subject property", in the present case Ms. Ward started by stating the tax value.
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.
By Ed Boltz, 11 August, 2017

Bankr. E.D.N.C.: Kozek v. Murphy- Bankruptcy Court Authority to Determine Personal Injury Tort Claim

Summary: Following the filing of Ms. Murphy’s Chapter 7 bankruptcy, her ex-husband, Mr. Kozek, brought an adversary proceeding against her for malicious prosecution, seeking both monetary damages and a determination that any such award was nondischargeable pursuant to 11 U.S.C. § 523(a)(6). After a bench trial, to which both parties explicitly consented, the bankruptcy court found Ms. Murphy liable to Mr. Kozek in the amount of $8,274.94, which was nondischargeable. While the written judgment was pending, Ms.

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