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Category Archives: Middle District Cases

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Balloon Payments Are Allowed In Chapter 13 Plans, Says Judge Carter In Middle District Of Georgia

In In re Cochran, Ch. 13 Case No. 15-52314-aec, 2016 WL 4575557 (Bankr. M.D. Georgia, September 1, 2016), the primary issue was “whether a plan that calls for distributions in the form of monthly payments followed by a balloon payment to a creditor holding a claim secured by the debtor’s real property complies with §1325(a)(5)(B)(iii)(I)… Continue Reading

Bankruptcy Court Finds Former UGA Football Coach Jim Donnan Did Not Knowingly Participate In Ponzi Scheme

In a significant victory for former Georgia football coach Jim Donnan, a Bankruptcy Judge has ruled that the evidence at trial did not support a finding that Donnan knowingly participated in a fraudulent Ponzi Scheme.  The case is Fennell v. Donnan, Adv. No. 11-3088, 2013 Bankr. LEXIS 3110 (Bankr. M.D. Ga. August 1, 2013) (Judge… Continue Reading

Lender’s Security Interest In Cash Collateral Is Separate & Distinct From Security Interest In Land, Entitling Lender To Separate Adequate Protection For Cash Collateral

The issue before the District Court in Putnall v. SunTrust Bank, No. 5:12-cv-481, 2013 U.S. Dist. LEXIS 44187 (M.D. Ga. March 28, 2013) was whether the lender’s security interest in rents (the “cash collateral”) was separate and apart from, and in addition to, its security interest in the rental property owned by the Debtor.  The… Continue Reading

Student Loan Discharge: Opinion Of Judge Walker of Middle District Of Georgia Illustrative Of “Certainty Of Hopelessness” Required For Discharge

The opinion of Judge Walker in the case of  In re Williams (Williams v. American Education Service, et al,), 2013 Bankr. LEXIS 2050, Adv. Proc. No. 12-5059 (Bankr. M.D. Ga. May 13, 2013) is a good example of the standard that must be met to discharge student loans. Debtor’s must not only demonstrate “undue hardship”… Continue Reading

Middle District Bankruptcy Court Approves Lien Stripping In Chapter 7 Case, Although Judge Disagreed With Precedent

In May 2012 the Eleventh Circuit entered its opinion in  In re McNeal and seemingly approved the stripping of wholly unsecured second liens in Chapter 7 cases.  Since this was an unpublished opinion of a panel (and non-binding), and contrary to authority in other Circuits, lawyers have been watching to see what Bankruptcy Courts would… Continue Reading

Tort Claim That Arose Before Chapter 7 Case Was Filed, But Not Discovered Until Long After Discharge, Was Property Of Bankruptcy Estate (M.D. Ga.)

In an interesting opinion, Chief Judge Laney of the Middle District of Georgia held that a tort claim that "arose" well before a Chapter 7 filing but was not discovered by the debtor until well after discharge was property of the Chapter 7 case. The case is interesting in that it was before the Court… Continue Reading

MD Ga – Stay Lifted For Lender To Repossess Vehicle Even Where Non-Debtor Assets That Served As Collateral Had Value In Excess Of Loan

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:””; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:”Calibri”,”sans-serif”; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:”Times New Roman”; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} In re Campbell, 2009 Bankr. LEXIS 833, Ch. 11 Case No. 08-51832-JDW (Bankr.… Continue Reading

Introsul, Inc., Designer And Installer Of Bathrooms And Fixtures For Hotel Industry, Files Chapter 11 Petition In Middle DistrictOf Georgia

Introsul, Inc., which according to its website offers "innovative solutions in bathroom design and installation to make life better for innkeepers and their guests all over North America," filed a Chapter 11 petition in the Middle District of Georgia on November 11, 2008.  In re Introsul, Inc., Ch. 11 Case No. 08-53328 (Bankr. M.D. Ga. Nov.… Continue Reading

Middle District Changes To ECF Definitions

From the Middle District of Georgia Clerk of the Bankruptcy Court – CMECF DICTIONARY CHANGES EFFECTIVE NOVEMBER 24, 2008 Motion to Release Unclaimed Funds: This is a new event in the motions category. Trustee’s Response: This was formerly called “Trustee’s Approval/Objection Letter.” The prompt has been modified to read “Please enter APPROVAL, OBJECTION, NO POSITION… Continue Reading

MD Ga – Oversecured Creditor Entitled To Post-Petition Attorneys Fees Notwithstanding Failure To Comply With O.C.G.A. § 13-1-11

JP Morgan Chase Bank v. ELL 11, LLC, No. 7:07-CV-158-HL, 2008 WL 4682263 (M.D. Ga. October 21, 2008). The issue before the Court is — This case presents the question of whether after the filing of a debtor’s Chapter 11 petition, an oversecured creditor is entitled to attorney fees actually incurred post-petition when the creditor failed to comply… Continue Reading

Bankr. M.D. Ga. – Debtor’s Equity Of Redemption Extinguished When High Bid Made At Foreclosure Sale, Even If Deed Under Power Not Recorded Until After Bankruptcy Petition Filed

In re Williams — B.R. —-, 2008 WL 4168151 ( Bkrtcy.M.D.Ga., September 04, 2008) (J. Hershner). In a motion to set aside a foreclosure sale, the Court held that a debtor’s equity of redemption was extinguished when the highest bid was made at a foreclosure sale, even if the deed under power was not recorded until… Continue Reading

Bankruptcy Court Order Dismissing Adversary Was Final Appealable Order Notwithstanding Absence Of Entry Of Judgment By Clerk Of Court

Klauman v. GMAC Mortg., LLC, Slip Copy, 2008 WL 4098947 (M.D.Ga. August 28, 2008) (J. Land). Debtors filed a class action against Defendant alleging that Defendants added undisclosed fees during their Bankruptcy case.  The Bankruptcy Court entered an Order dismissing the adversary for lack of subject matter jurisdiction on April 10, 2008: Since [Debtors] fail… Continue Reading

District Court for Middle District Holds Surrender Of “910 Vehicle” Constitutes Full Satisfaction Of Claim

Jason Braswell of Morgan & Morgan in Athens, Georgia passed along is case of  In re Carter , Case No. 3:07-CV-50, Ch. 13 Case No. 06-30846 (M.D. Ga.) (click here for .pdf), wherein Judge Land affirmed the Bankruptcy Court’s ruling that surrender of "910 vehicles" constitutes full satisfaction of the claim.  This issue has been discussed… Continue Reading

Member/Manager of Georgia Limited Liability Company Not Necessarily A Fiduciary For § 523(a)(4) Purposes.

Tarpon Point, LLC v. Wheelus, Adv. No. 07-3022, 2008 WL 372470 (Bankr. M.D. Ga. Feb 11, 2008) (Walker).  Plaintiffs alleged that the debt owed by Debtors was nondischargeable pursuant to § 523(a)(4), defalcation while acting as a fiduciary.  The issue was whether the Debtors had a fiduciary duty sufficient to invoke this section merely because… Continue Reading

Member/Manager of Georgia Limited Liability Company Not Necessarily A Fiduciary For § 523(a)(4) Purposes.

Tarpon Point, LLC v. Wheelus, Adv. No. 07-3022, 2008 WL 372470 (Bankr. M.D. Ga. Feb 11, 2008) (Walker).  Plaintiffs alleged that the debt owed by Debtors was nondischargeable pursuant to § 523(a)(4), defalcation while acting as a fiduciary.  The issue was whether the Debtors had a fiduciary duty sufficient to invoke this section merely because… Continue Reading

NDGa – Misc. Consumer Cases: Means Test, Automatic Stay, Disqualification of Judge, Preferential Transfers

  In re McDaniel, No. 06-62786, 2007 Bankr. LEXIS 3390 (August 24, 007)(CRM).  The United States Trustee filed a motion to dismiss under §707(b)(2) and (b)(3) based on  presumption of abuse and totality of circumstances.  The Court held that 1) the debtor could deduct secured debt payments on the means test even where he intended… Continue Reading

MD Ga – Incarceration No Excuse For Failing To Complete Financial Management Course.

In re Cox, 2007 WL 4355254, No. 07-10787-JDW (Bankr. M.D.Ga. Nov 29, 2007).  Prison is no excuse for not completing the financial management course, as required in §727(a)(11) and §109(h)(4). The Court agrees with [ In re Rendler, 368 B.R. 1 (Bankr.D.Minn.2007)] that an incarcerated debtor is prevented from obtaining a financial management course by his personal circumstances; not… Continue Reading

Misc. Georgia Cases – Post-Petition PI Claim Not Ch. 13 Estate Property; Claim For Sales Taxes Disallowed In Individual Case

In re Foreman, No. 01-21400, 2007 WL 4170629 (Bankr. S.D. Ga. Nov. 26, 2007).  From the Westlaw blurb – Wrongful death action which arose postconfirmation, when Chapter 13 debtor’s husband was killed, and which no party asserted would have to be successfully prosecuted to enable debtor to fulfill her plan, was not included in “property… Continue Reading