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western district of north carolina

In re Pace

Ruling
Debtor's attorney ordered to cancel promissory note for fees and release liens placed on property of the estate to secure the note.
Issue(s)
Whether a chapter 7 debtor's attorney may take a security interest in the debtor's property prior to filing bankruptcy to secure both pre- and post-petition professional fees?

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Consumer opinion summary, case decided on November 02, 2015 , LexisNexis #1115-124

Stiles v. Robbins (In re Robbins)

Ruling
Transfers to subsequent transferees who accepted in good faith for value were not avoidable.
Issue(s)
Could transfers of funds paid by debtors to construction company, which paid the funds to third parties as subsequent transferees, be recovered from the third parties?

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Consumer opinion summary, case decided on August 21, 2015 , LexisNexis #0915-059

In re AT-NET Services-Charlotte Inc.

Ruling
Undersecured creditor's claim against debtor's receivables was not of inconsequential value and could be elected to be treated as secured.
Issue(s)
Whether undersecured creditor's interest is "of inconsequential value" which would prevent the creditor from electing to have its entire claim treated as secured.

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Commercial opinion summary, case decided on August 17, 2015 , LexisNexis #0915-024

Johnson v. Meabon (In re Meabon)

Ruling
Trustee's late filing of proceeding to revoke discharge was not a jurisdictional defect.
Issue(s)
Should revocation of discharge be vacated where trustee's proceeding was filed outside of the one-year time limit?

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Consumer opinion summary, case decided on August 13, 2015 , LexisNexis #0915-022

Norvell v. Hatcher (In re Norvell)

Ruling
State court judgment was not sufficiently specific to have collateral estoppel effect on issue of nondischargeability.
Issue(s)
Whether a state court judgment concluding that debtor was liable for damages for breach of contract but not for fraud or unfair and deceptive practices precluded creditor from asserting the resulting debt owed is nondischargeable in debtor's bankruptcy case?

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Consumer opinion summary, case decided on June 11, 2015 , LexisNexis #0715-016

In re Runnels

Ruling
Debtor could modify plan due to substantial, unanticipated change for the worse of financial circumstances.
Issue(s)
Could debtor modify chapter 13 plan due to unanticipated change in financial circumstances due to worsening of disability?

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Consumer opinion summary, case decided on May 11, 2015 , LexisNexis #0615-031

Finley Group v. N.C. (In re Redf Mktg. LLC)

Ruling
Proceeding to recover proceeds of fraudulent transfer from state was not barred by sovereign immunity.
Issue(s)
Was avoidance proceeding to recover transfer from state barred by operation of sovereign immunity?

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Commercial opinion summary, case decided on March 10, 2015 , LexisNexis #0415-055

Blue Cross & Blue Shield of N.C. v. Jemsek Clinic P.A. (In re Jemsek Clinic P.A.)

Ruling
Cross motions for sanctions denied absent misrepresentations or bad faith.
Issue(s)
Should either of two cross motions for sanctions between chapter 11 debtor clinic and health insurance company be granted?

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Commercial opinion summary, case decided on February 06, 2015 , LexisNexis #0315-001

Hadley v. Tano (In re Tano)

Ruling
State court judgment based on willful and malicious injury to business partner through dissolution of company that caused shares to become worthless was nondischargeable.
Issue(s)
Whether a state court judgment for improper conduct in dissolution of corporation and breach of a non-compete agreement was nondischargeable as based on willful and malicious injury?

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Consumer opinion summary, case decided on February 02, 2015 , LexisNexis #0215-123

In re Nitzsky

Ruling
Automatic stay applied to judgment of ejectment that was still subject to appeal.
Issue(s)
Was creditor landlord entitled to relief from stay to enforce prepetition judgment for ejectment of debtor tenant where appeal period had not yet expired on petition date?

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Consumer opinion summary, case decided on September 18, 2014 , LexisNexis #1014-040