Summary: In the bankruptcy of Garlock Sealing Technology, allegations were raised that national counsel for mesothelioma victims had engaged in fraud, deceit, and other activities prohibited by the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. §§ 1961-1968, in settling their clients’ claims. After the bankruptcy judge ordered the hearing closed, Legal Newsline filed an emergency motion to keep the hearing at which these issues were raised open to the media and the public. Following Media General Operations, Inc. v.

Summary: The Debtor’s great uncle Jennings had, in his waning years, received care and assistance from the Debtor and transferred his Rock Hill, S.C. home to her. When she filed bankruptcy, the Debtor asserted that Jennings was her dependent and claimed the property as exempt under N.C.G.S. § 1C-1601(a)(1).

Summary: After exhausting her 36 months of student loan deferments for unemployment, the Debtor sought to discharge her student loans in bankruptcy. The Department of Education offered her an Income Contingent Repayment plan (“ICRP”), with monthly payments set, at least initially, in the amount of $0.00 a month. Even though the Debtor had a very low standard of living, the bankruptcy court held that under ICRP she would have payments of $0.00 a month, her student loans would not cause a minimal standard of living.

Summary: The Chapter 7 Trustee discovered that the Female Debtor was the 50% beneficiary of her late father's springing trust, with her share being worth approximately $100,000, that had not been listed in the petition. The Trustee also cam to believe, based on a valuation by a realtor, that real property valued at $10,000 by the Debtors was actually worth as much as $44,900. After discovery and belated disclosure of these, the Debtors sought to convert their case to Chapter 13, with the Trustee objecting.

 Summary: Prior to filing their first bankruptcy, Murrell deeded his home to the Phoenician Irrevocable Trust, in an unsuccessful attempt to prevent foreclosure by Bayview, now First Horizon. When the foreclosure sale was allowed, Murrell filed Chapter 13 on the 9th day of the 10-day upset period, but since the property was no longer owned by the Murrell, the bankruptcy court held that foreclosure was not stayed by their filing.

Summary: Prior to the §341 Meeting of Creditors, the trustee was provided with an incomplete 2011 tax return, but, after insisting at the meeting, was given a complete return. This complete return disclosed that Belk was the owner of Independence Entertainment, L.L.C., an entity with annual revenues of more than $200,000, but which was not listed in Belk’s petition. The Trustee then discovered that Independence Entertainment had been administratively dissolved only three months before the filing of the bankruptcy and had transferred business assets to a third party.

Summary: Carolina Internet had an oral agreement to pay O’Dell 6.5% of its sales from its largest customer, believing that O’Dell could take that account away. When Carolina Internet filed Chapter 11, however, it did not list O’Dell as a creditor. That failure notwithstanding, O’Dell was aware of the bankruptcy, both as it was being planned and after it was filed.

Summary: Mr. Jarrett held a one-half remainder interest in real property, with the other one-half remainder interest held by his sister and the life estate in favor of his mother. The tax value of the property is $118,500, with a $42,362 mortgage. Mr. Jarrett valued his fractional interest at $7,110 and exempted $4,568.28. The Court held that Chapter 7 Trustee could not sell an entire interest in the property free and clear of the interest of the life tenant. See In re Sargent, 337 B.R. 661 (Bankr. N.D.

Summary: The Trustee brought an adversary proceeding against Calvin Phelps and his wife, Lisa Yamaoka, challenging numerous transfers and payments that were made by Renegade Holdings of approximately $8 million to or for the benefit of the Phelps prior to the bankruptcy filing, obtaining an order for a levy on their tangible and intangible personal property, specifically of pertinence in the instant case for Writs of Garnishment served on Branch Banking and Trust Company ("BB&T") and Bank of the Carolinas ( "BOC") .

Summary: Applying principles enunciated by the United States Supreme Court in Assocs. Commercial Corp. v. Rash, 520 U.S. 953, 117 S.Ct. 1879 (1997), the Bankruptcy Court also found that it was appropriate to apply a minority discount when gauging the fair market value of the Corporate Holdings. To hold otherwise would give the best interest of the creditors a “punitive effect” on the Debtor by requiring payment of more than the fair market value of the assets in order to retain them.