Georgia Bankruptcy Blog

Georgia Bankruptcy Blog

Category Archives: Miscellaneous Cases

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6th Circuit – In A Case Of First Impression At Circuit Level, Court Holds That Bankruptcy Court Cannot Retain Case Filed In Improper Venue Over Timely Objection By Interested Party

By: Scott B Riddle, Esq. Thompson v. Greenwood, 2007 Fed. App. 0445P,  2007 WL 3286743 (6th Cir. Nov. 8, 2007).  "This case presents a single issue on appeal: whether a bankruptcy court may retain a case filed in an improper venue under 28 U.S.C. § 1408 over a timely objection by an interested party, if… Continue Reading

Bankruptcy Judge – United States Trustee Not Entitled to Expedited Discovery To Determine Presumed Abuse; They Must Follow Discovery Rules

In re Perrotta, 2007 WL 3307256 (Bankr. D. N.H., November 7, 2007).  The United States Trustee sought a Rule 2004 Order in order to determine, through an "informed decision," whether the debtor’s case should be "presumed abuse" pursuant to §707(b).  The Court denied the request, concluding that the UST should rely upon existing information (i.e., pay… Continue Reading

Happy Halloween: Don’t Get In Trouble This Evening

From the Wall Street Journal Law Blog, The Legal Implications of Throwing Eggs – Theft: Stealing candy from another person, or a location, is classified as “robbery.” Use a real or fake weapon in the commission of this robbery, and the stakes get even greater with possible felony-level re-classification as a “violent” crime for which… Continue Reading

Court Holds That Credit Counseling Not Required; Debtor’s Certification That Counseling Was Completed Satisfied Requirement

In In re Lilliefors, 2007 WL 2903803* (E.D. Va. October 3, 2007), the debtor certified, under oath, that he had obtained the credit counseling prior to filing his Bankruptcy petition, as required by §109(h)(1). In fact, he had not obtained the counseling.  However, the Court applied judicial estoppel and prohibited the debtor from taking an… Continue Reading

Hanging Paragraph Of §1325 Again; Tenth Circuit BAP Follows “Majority,” Holds That Surrender Of “910 Vehicle” Constitutes Full Satisfaction Of Claim

On July 5, 2007, the Seventh Circuit held that the "hanging paragraph" of 11 U.S.C. §1325 meant that the secured creditor may assert a deficiency claim after the surrender and liquidation of a "910 vehicle."  This is generally known as the minority position (and the one followed in the ND Ga). See this post for… Continue Reading

Hanging Paragraph Of §1325 Again; Tenth Circuit BAP Follows “Majority,” Holds That Surrender Of “910 Vehicle” Constitutes Full Satisfaction Of Claim

On July 5, 2007, the Seventh Circuit held that the "hanging paragraph" of 11 U.S.C. §1325 meant that the secured creditor may assert a deficiency claim after the surrender and liquidation of a "910 vehicle."  This is generally known as the minority position (and the one followed in the ND Ga). See this post for… Continue Reading

Seventh Circuit Follows Minority Position – Hanging Paragraph Of §1325 Allows Creditor A Deficiency Claim After Surrender of Collateral

In a case that was a direct appeal to the Seventh Circuit Court of Appeals, pursuant to 28 U.S.C. §158(d)(2)(A), the Court held that the "hanging paragraph" of 11 U.S.C. §1325 left lenders with a deficiency claim after surrender of the "910 vehicle."   The Court rejects the majority (?) view that Congress "accidentally gave debtors… Continue Reading

Seventh Circuit Follows Minority Position – Hanging Paragraph Of §1325 Allows Creditor A Deficiency Claim After Surrender of Collateral

In a case that was a direct appeal to the Seventh Circuit Court of Appeals, pursuant to 28 U.S.C. §158(d)(2)(A), the Court held that the "hanging paragraph" of 11 U.S.C. §1325 left lenders with a deficiency claim after surrender of the "910 vehicle."   The Court rejects the majority (?) view that Congress "accidentally gave debtors… Continue Reading

3rd Circuit – Contemporaneous Exchange Defense To Preference Action Applies Even Where Payment Made In Context Of Credit Agreement

Hechinger Investment Company of Delaware, Inc. v. Universal Forest Products, Inc., Nos. 06-2166, 06-2229, 2007 U.S. App. LEXIS 13155 (3rd Cir. June 7, 2007).   The issue was whether preferential transfers may be protected by the contemporaneous exchange defense of §547(c)(1).  Bob Eisenbach comments on the case at the Business Bankruptcy Blog, so I will just… Continue Reading

PR At Work: Houston Bankruptcy Judge Finds Firm “Disinterested” Even Where Lawyer In Firm Holds Claim Against Debtor And Served As Director Of Debtor Shortly Before Filing

This case comes courtesy of an email from Jennifer Gronwaldt of the Media Relations firm of Hellerman Baretz Communications LLC, apparently sent to other bankruptcy blogs as something of a press release (it apparently worked!). The case is In re Cygnus Oil and Gas Corp., f/k/a Coffee Exchange, Inc., f/k/a Touchstone Resources, LLC, Case No.… Continue Reading

6th Circuit – Secret Agreement Between Plaintiff’s Law Firm And In-State Co-Defendant To Defeat Diversity Need Not Be Disclosed

Although this case involves a Chapter 11 debtor as a party, the issue is not based upon Bankruptcy law.  However, it is an interesting holding for lawyers who practice in federal court. In Saltire Industrial, Inc., f/k/a Scovill, Inc. v. Waller, Lansden, Dortch & Davis, PLLC (click for opinion), No. 06-5949, 2007 U.S. App. LEXIS… Continue Reading

Arizona Bankruptcy Court – “Ride Through” Still Available For Secured Debts After Failure Of Timely Filed Reaffirmation Agreement

In re Moustafi (click for opinion), Ch. 7 Case No. 4-07-00407-EWH, 2007 Bankr. LEXIS 1925 (Bankr. D. Ariz. June 4, 2007.  The Chapter 7 debtor stated her intention to reaffirm the debt secured by her vehicle. She timely executed the reaffirmation agreement pursuant to §521, and it was accepted by the lender.  However, the court found that debtor’s income… Continue Reading

Delaware Supreme Court Holds That Creditors Cannot Bring Direct Claims For Breach Of Fiduciary Duty During Zone Of Insolvency

By: Scott B. Riddle, Esq.  I have previously posted (follow the link to the Delaware Litigation Blog) on the subject of whether creditors have a direct action against directors of a corporaton that has entered the zone of insolvency.  Chief Justice Steele’s comments were prophetic.  Yesterday, in an opinion that will likely have a far reaching… Continue Reading