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.

Summary: RTJJ is the largest owner of low-income housing in Gastonia. Following first the closure of area textile mills and then the housing crash, RTJJ became unable to pay its debts and faced foreclosure by Community One, its largest secured creditor. Despite proposing a Chapter 11 plan that would have paid creditors substantially more than a Chapter 7 liquidation, Community One objected to the plan and pressed for the sale of the assets.

Summary: Following a Motion for Relief from Stay filed by ASC, the Debtor argued that ASC was not a a “party in interest” and lacked standing as there was neither an endorsement on the note nor an allonge affixed and presented in support of the Motion. \ Avoiding this issue, the Bankruptcy Court held “that a confirmed Chapter 13 plan, which represents a new contractual agreement between debtors and their creditors, is res judicata on the issue of a creditor’s rights as a party in interest with standing to seek relief from the stay.” In re Jeter, No.

Summary: In addition to a misstatement regarding their residency in the Western District of North Carolina, the Debtors failed to disclose in their Chapter 7 petition that they had transferred real property to their daughter within one year of their bankruptcy filing. Upon discovery by the Trustee (and likely facing avoidance of the transfer) the Debtors sought to convert to Chapter 13, amending their petition to include the transfer and also including additional income from the Female Debtor. Beginning from Marrama v.

Summary: The Chapter Trustee sought denial of Spiers’ discharge, exemptions, and monetary relief on the grounds that Spiers had intentionally failed to disclose numerous assets and transfers of assets he owned or had an interest in at the time of the filing of the bankruptcy petition, attempted to suborn perjury from another witness, and failed to cooperate with the Trustee to the point that the Trustee forced to expend a substantial amount of time and resources in attempting to obtain an accurate portrayal of Spier’s finances and to recover for the benefit of his creditors.