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middle district of north carolina

Ivey v. Hunter Acquisitions Inc. (In re Carolina Acoustical & Floorings Inc.)

Ruling
Obligor on promissory note in favor of debtor allowed setoff for debtor's breach of contract.
Procedural posture

Chapter 7 trustee filed an adversary complaint against the obligor on promissory notes for $30,000 and $50,000, arising out of defendant's purchase of the assets of debtor. At issue inter alia was the impact on the rights of the various parties of setoff provisions in 11 U.S.C.S. § 553 and former Article 6 of North Carolina's version of the Uniform Commercial Code (NCUCC), N.C. Gen. Stat. § 25-6-101 et. seq. (repealed 2005).

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Commercial opinion summary, case decided on March 03, 2009 , LexisNexis #0509-066

In re Lexington Hearth Lamp & Leisure LLC

Ruling
Trustee not entitled to compensation as attorney for trustee for services falling within scope of trustee duties and not requiring law license.
Procedural posture

These matters were before the Court upon consideration of the respective Applications for Final Allowance of Compensation for Attorney for Trustee filed by the Trustee in each of the referenced chapter 7 cases. The U.S. Bankruptcy Administrator filed an objection to each of the Applications.

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Commercial opinion summary, case decided on February 17, 2009 , LexisNexis #0709-032

In re Spencer C. Young Investments

Ruling
Case dismissed due to corporate debtor's failure to obtain counsel and violation of cash collateral order.
Procedural posture

The Bankruptcy Administrator moved to dismiss the debtor's chapter 11 case.

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Commercial opinion summary, case decided on February 04, 2009 , LexisNexis #0609-064

In re Christiansen

Ruling
Case dismissed for abuse as debtor could fund chapter 13 plan over five years.
Procedural posture

The United States Bankruptcy Administrator (Administrator) moved to dismiss the debtor's chapter 7 case pursuant to 11 U.S.C.S. § 707(b)(3).

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Consumer opinion summary, case decided on January 21, 2009 , LexisNexis #0309-016

In re Rhoades

Ruling
Case dismissed for abuse due to excessive budget and inaccuracies in schedules.
Procedural posture

Debtors' chapter 7 case came before the court upon the motion of the Bankruptcy Administrator for dismissal of the case pursuant to 11 U.S.C.S. § 707(b)(1), (b)(3).

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Consumer opinion summary, case decided on January 21, 2009 , LexisNexis #0309-014

In re Utility Craft Inc.

Ruling
Store credit for item purchased from debtor and returned as defective was a general unsecured priority claim.
Procedural posture

A debtor filed for relief under chapter 7 of the Bankruptcy Code. A creditor filed a claim and a chapter 7 trustee filed an objection to the claim. The court issued findings of fact and conclusions of law on the claim and the objection.

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Commercial opinion summary, case decided on December 29, 2008 , LexisNexis #0209-112

Ivester v. Miller

Ruling
Bankruptcy court did not err in denying relief from stay to allow creditor to pursue prepetition state court action.
Procedural posture

Appellant attachment lienors challenged a decision of the Bankruptcy Court for the Middle District of North Carolina, which denied the lienors relief from the automatic stay of 11 U.S.C.S. § 362 in order to prosecute a pre-petition state court action against the debtor.

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Consumer opinion summary, case decided on December 04, 2008 , LexisNexis #0109-072

In re Smith

Ruling
Debtor allowed administrative expense claim for fees and costs of lawsuit that benefitted the estate.
Procedural posture

The court supplemented its previous findings of fact and conclusions of law concerning the application for administrative expenses in the amount of $ 15,158.73, including $ 3,930.70 in attorneys fees and expenses and $ 7,200.00 in expert consultant fees, filed by the debtor pursuant to 11 U.S.C.S. § 503(b). The debtor incurred the expenses while the estate was closed, prior to the case being reopened upon discovery of the underlying lawsuit.

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Consumer opinion summary, case decided on November 25, 2008 , LexisNexis #0109-045

In re Watson

Ruling
Debtor's motion to excuse failure to provide tax returns denied as unnecessary absent pending motion to dismiss.
Procedural posture

The debtor filed a motion to excuse compliance with 11 U.S.C.S. § 521(e)(2)(A).

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Consumer opinion summary, case decided on October 16, 2008 , LexisNexis #1208-115

In re Smith

Ruling
Bankruptcy court declined to revoke abandonment of debtor's real property upon reopening of case to administer unlisted lawsuit.
Procedural posture

After the debtor was granted a chapter 7 discharge, the trustee sought to reopen the case to administer an unlisted lawsuit. The debtor amended his property exemptions to exempt part of the unlisted asset. He also moved for authority to sell real property to his fiance for more than the value listed on schedule A. The sale was allowed. The trustee objected to the sale, seeking an order that the net proceeds belonged to the estate.

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Consumer opinion summary, case decided on October 06, 2008 , LexisNexis #1208-018