Summary:
The Debtors paid their attorney $10,000 prior to filing Chapter 11 for pre-petition services, with nothing owed to the attorneys at the time of filing. In order to secure fees for services rendered during the pendency of the case, the Debtors granted their attorneys two future advance deeds of trust on tracts of land owned by the Debtors. The Bankruptcy Administrator objected to the application to employ the attorneys, asserting that the attorneys were not disinterested persons as defined in § 101(14) and as required by § 327(a).
Summary:
The Debtors own and operate a feed mill. Following initiation of foreclosure proceedings against 442.92 acres of land (which had been in the Debtors’ family for centuries!), the Debtors filed Chapter 11.
Summary:
The U.S. Attorney filed a Criminal Information against the Male Debtor on March 24, 2011, alleging that he had conspired to defraud a federal crop insurance program by making over $60,000 in false claims for tobacco crops he had sold under false names to hide production. The Debtors filed Chapter 11 bankruptcy on November 19, 2011. On February 22, 2012, the Male Debtor plead guilty to one count of conspiracy to make false statements, to make materially false statements and to commit mail fraud and wire fraud in violation of 18 U.S.C.
Summary:
The Debtor filed a voluntary Chapter 11 case, but PNC Bank, the largest unsecured creditor, moved to dismiss the bankruptcy. The Debtor moved to convert to Chapter 7. The Bankruptcy Administrator supported dismissal.
The Bankruptcy Court first found that und 11 U.S.C. § 1124(b)(4) there were sufficient grounds to convert of dismiss the case.
Summary:
The individual Chapter 11 plan proposed to pay approximately a 4% dividend to general unsecured claims, but separately classified his $235,871.00 in student loans, proposing to pay that class in full. No impaired class accepted the plan.
Accordingly, the plan could only be approved by fulfilling the requirements of 11 U.S.C.
Summary:
The Chapter 11 plan, confirmed in 2001, provided that the liability of the guarantors was capped at the amount of the Recapitalized Debt. The creditor, originally Wachovia, however, argued that this provision was impermissible and should not be given effect now.
The bankruptcy court found that this argument was fallacious. First, the terms of the confirmation order had been fully negotiated by a sophisticated creditor with an experienced attorney from a large law firm.
That aside, pursuant to both A.H. Robins Company, Inc. v Mabey, 880 F.
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.
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
