Georgia Bankruptcy Blog

Georgia Bankruptcy Blog

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Bitcoin – Currency or Commodity For Purposes of §550 And Avoidance Actions? What About Claims?

Bitcoin – currency, the equivalent of U.S. dollars, or a commodity more similar to a product or stock? (What is Bitcoin?).  If a Trustee sues to avoid and recover a transfer of Bitcoin, is the claim amount for the value of the transfer at the time of the transfer, or increased (or decreased) value at… Continue Reading

Arrested For Not Paying Student Loans? No – The Paul Aker Story Was Essentially Fabricated

“Believe it or not, the US Marshals Service in Houston is arresting people for not paying their outstanding federal student loans.”  So says Fox 26 Houston reporter Isiah Carey.  The problem is, this statement is absolutely false.  Paul Aker owed student loans, and was apparently in default.  Paul Aker was sued for the student loan… 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

Several Popular Local Restaurants, Including Garrison’s, Einstein’s and Joe’s on Juniper, File Chapter 11 Petitions After Large Judgment Entered

Several popular restaurants in metro Atlanta filed Chapter 11 petitions in the Northern District of Georgia on June 13, 2013 after a $2.14 million judgment was entered in Cobb County Superior Court.  The entities filing include: Vinings Dining, LLC (d/b/a Garrison’s Boiler & Tap), Ch. 11 Case No. 13-63089 (click here for Ch. 11 petition).… Continue Reading

To Increase Chances Of Getting Your Chapter 13 Plan Confirmed, Add An Apology

According to a new study by Robert Lawless and Jennifer Robbennolt (summarized in the Wall Street Journal), Judges are more likely to approve a Chapter 13 plan that includes an apology.  From the Wall Street Journal article: In the 29-page study, Lawless and colleague Jennifer Robbennolt said they told participating judges about the Millers, a fictional family… Continue Reading

10th Annual Emory Bankruptcy Developments Journal Symposium – February 28, 2013.

Symposium Schedule – February 28, 2013 8:00 am – 8:50 am Registration and Breakfast 8:50 am – 9:00 am Introduction Dean Robert Schapiro, Emory University School of Law 9:00 am – 10:30 am Corporate Panel: Municipal Restructuring Moderator: Gary Marsh,  McKenna Long & Aldridge LLP Patrick Darby, Partner, Bradley Arant Boult Cummings  Mark Kaufman, Partner, McKenna… Continue Reading

Article on Receiverships: “Avoiding A Nightmare” By Greg Hays

Greg Hays of Atlanta-based Hays Financial Consulting published an article in the Fall 2012 issue of Receivership News, a publication of the California Receivers Forum. The subject and scope of the article, entitled "Avoiding a Nightmare," is described in the introduction:  A properly structured receivership can provide a cost-effective, efficient, and flexible vehicle to protect… Continue Reading

Bankruptcy Trustee Of Swoozie’s Sues Founder & CEO For Breach Of Fiduciary Duty & Corporate Waste

Previous articles have discussed the fiduciary duties of officers and directors of companies in financial trouble (see articles here and here). In another adversary proceeding to hold owners, officers and directors responsible for the financial demise of their companies, the Chapter 7 Trustee of Swoozie’s has filed a Complaint against the founder and former CEO… Continue Reading

Historic Morris Brown College In Atlanta Files Chapter 11 Bankruptcy Petition To Avoid Foreclosure

Morris Brown College, a historically black college in Atlanta and part of the Atlanta University Center (which also includes Clark Atlanta University, Spelman College, Morehouse College and the Morehouse School of Medicine) filed a Chapter 11 petition in the Northern District of Georgia on August 25, 2012 to avoid a foreclosure of its property.  The… Continue Reading

Bankruptcy Trustee Of Raving Brands, Inc. (Moe’s, Doc Greens, Flying Biscuit, Monkey Joe’s) Files Suit Against Former Owners, Officers And Related Entities, Alleges Fraud, Deception and Breach Of Fiduciary Duties

The Chapter 7 Trustee of Raving Brands, Inc.  filed on August 16, 2012 an adversary proceeding against several former owners, officers and directors of the Debtor, as well as several affiliated companies, alleging, inter alia, that the parties engaged in a widespread effort to deceive the public, its franchisees, the press, courts and its creditors.… Continue Reading

Bankruptcy Filings Are Down In Georgia And Nationwide

The latest statistics from the Northern District of Georgia Clerk’s Office and Administrative Office show, not surprisingly, that filings are down.  In the Northern District of Georgia, Chapter 7 and 13 filings are down significantly from January to June 2012, compared to the same time period in 2011.  The total cases filed year to date,… Continue Reading

Reese v. Provident Funding: Georgia Court of Appeals Ruling Potentially Invalidates Thousands Of Foreclosures

In a case of first impression, the Georgia Court of Appeals has held that a foreclosure notice must identify both the secured lender and the "individual or entity who shall have full authority to negotiate, amend, and modify all terms of the mortgage with the debtor."  Reese v. Provident Funding Associates, LLP, 2012 Ga. App. LEXIS… Continue Reading

The Law Of Collateral Estoppel: Bankruptcy Proof Your Judgment

Bill Rothschild of Ogier, Rothschild, Rosenfeld & Ellis-Monroe, P.C., has an article in the current issue of Calendar Call, a publication of the General Practice and Trial Section of the State Bar of Georgia, entitled "Bankruptcy-Proofing Your Law Judgment: How Not to Try the Same Case Twice."  The article discusses steps litigators should take in non-bankruptcy courts to… Continue Reading

Foreclosures In Georgia and Metro Atlanta Jump Higher, Chapter 7 and Chapter 13 Bankruptcy Filings Also Rising

The Atlanta Journal reports that Georgia’s rate of foreclosures remains among the highest in the nation. Statewide, 12,356 properties had foreclosure filings — including default notices, scheduled auctions and bank repossessions — in February, RealtyTrac reported Thursday. That’s one in every 331 homes, compared with one in every 637 nationally. Filings in February fell 0.89… Continue Reading

Can Creditors File A Derivative Action Against Limited Liability Company?

In CML V, LLC v. Bax, No. 735, 2010 (Del. Supr. Sept. 2, 2011) (click here for .pdf of opinion), the Delaware Supreme Court addressed the questions of whether a creditor can file a derivative action against a limited liability company.   Plaintiff CML asserted the following derivative claims against the present and former members of… Continue Reading

Assignments of Trademarks in Bankruptcy – Judge Posner and 7th Circuit Provide Answer

The Seventh Circuit Court of Appeals has issued the first published Circuit Court opinion on the question of whether trademarks are assignable in a Bankruptcy case.  The opinion, authored by Judge Posner, is in the case of In re XMH Corp., Nos. 10-2596, 10-2597, 10-2598, 10-2599,  2011 U.S. App. LEXIS 15372 (7th Cir. July 26, 2011) (click… Continue Reading

Upcoming Events In Georgia

Here is a list of events of interest to Bankruptcy lawyers in Georgia.  Please send a message or leave a comment if there are others. April 14-16, 2011 — 37th Annual Southeastern Bankruptcy Law Institute.  There is still time to register (click here).  The good news is that it covers more than a year’s worth… Continue Reading

Lawsuits Being Flying Against Officers, Directors, Insiders And Professionals Of Failed Banks

The State of Georgia is among the national leaders in banks closed by state and federal agencies.  So far in 2011, six Georgia banks have been closed, with the latest two being Habersham Bank and Citizens Bank of Effingham.  Since late 2008, when the banking crisis hit, a total of fifty seven Georgia banks have… Continue Reading