The bankruptcy court denied a motion to dismiss two chapter 11 cases, which had employed the infamous 'Texas Two Step" to address (avoid? skirt?) liability for asbestos mass torts claims, holding that :
Title 11 of the United States Code (the “Bankruptcy Code”) provides a fresh start to the “honest but unfortunate debtor.” Chapter 7 therefore permits a debtor to “discharge their outstanding debts in exchange for liquidating their nonexempt assets and distributing them to their creditors.” Dismissals in chapter 7 are governed by section 707 of the Bankruptcy Code. Section 707(a) governs all chapters of bankruptcy filings and applies when adequate “cause” is shown.
The bankruptcy court allowed Y2 Yoga to file a claim for post-petition attorneys fees pursuant to N.C.G.S. § 6-21.6(f). When that amount exceed the judgment amount upon which the claim was based, VR King objected that such was prohibted as the award of reasonable attorney’s fees may not exceed the amount in controversy.
Two months prior to the filing of bankruptcy by Ms. Corbell-Dockins and her husband, Kirk Morishita died leaving Corbell-Dockins the beneficiary of his 401k, which was rolled over into a 401k account in her name.
Ms. Hinyub obtained a default judgment against AA Recovery for $5,000 in damages and $4,100 in attorney's fees and cost. When AA Recovery failed to pay, Ms. Hinyub requested to conduct an examination of the primary officer of AA Recovery. The court, however, held that as Ms. Hinyub had not had a writ of execution issued and N.C.G.S. § 1-352 only allows an examination when such writ "is returned wholly or partially unsatisfied."
