Georgia Bankruptcy Blog

Georgia Bankruptcy Blog

Category Archives: Northern District Cases

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In a Case of First Impression, 11th Circuit Rules “New Value” Can Be Both Preference Defense and Administrative Claim

In Auriga Polymers, Inc. v. PMCM2, LLC, as Liquidating Trustee, No. 20-14647, 2022 WL 2800195 (11th Cir. July 17, 2022) (click here for .pdf) the creditor, Auriga, received transfers of more than $2.2 million in the 90 days before the Debtor, Beaulieu Group, LLC, filed its Bankruptcy case on July 16, 2017.  During the 90… Continue Reading

Judge Bonapfel – When Are Educational Loans Business Debts For Purposes of Qualifying for Chapter 7?

In the case of In re Ruff, 2022 B.R. 1638964, Ch. 7 Case No. 20-68855-pwb (Bankr. N.D.Ga. March 31, 2022) (click here for .pdf) the issue was whether the educational loans owed by the Debtor were “consumer” debts as defined by 11 U.S.C. §101(8) of the Bankruptcy Code, and incorporated into 11 U.S.C. §707(b).  If… Continue Reading

11th Circuit Rules On The Georgia Real Property Remedial Statute – Who Is A “Subscribing Witness?”

Once again, a Bankruptcy case leads to a key opinion in Georgia real estate law and, as often the case, the Chapter 7 Trustee prevails.  In In re Lindstrom, 2022 WL 1041192 (11th Cir. April 7, 2022) (click here for .pdf) the issue was the validity of a security deed, the interpretation of the Georgia… Continue Reading

Roth IRA Is Exempt Under New Georgia Exemption Laws, 11th Circuit Says in Case of First Impression

In In re Hoffman, 2022 WL 203415 (11th Cir. January 24, 2022) (click here for .pdf) the issue before the Court was whether Roth IRAs were exempt pursuant to 11 U.S.C. §541(c)(2) or O.C.G.A. § 44-13-100(a)(2)(E).  This is a case of first impression in the Circuit, based upon recent amendments to the Georgia exemption statutes.… Continue Reading

Why Are Large Chapter 11 Cases Dismissed, Leaving Small Creditors Out of Luck? Judge Bonapfel Explains.

“It has been said that, in many bankruptcy cases, there are no good alternatives, only less bad ones. As financial realities in this case took hold, it became clear that, for most creditors, including the objectors, there were not even “less bad” alternatives. The Court is saddened that it can offer only an explanation for… Continue Reading

Judge Basier: Debtor May Redeem Real Property Sold At Tax Sale And Pay Redemption Amount Over Term Of Chapter 13 Plan.

In In re Jimerson, Ch. 13 Case No. 16-60838, 2017 WL 393675 (Bankr. N.D. Ga. January 26, 2017 (Basier, J.) (click here for .pdf of opinion), the debtor’s property had been sold at a tax sale for non-payment of Fulton County property taxes.  The purchaser at the tax sale sent the appropriate Barment Notice providing… Continue Reading

When Is A Discharge Proceeding For Student Loans Ripe In Chapter 13? Judge Bonapfel Answers.

In In re Vines, Adv. Proc. No. 16-4045, 2017 WL 213806 (Bankr. N.D. Ga. January 18, 2017), the Chapter 13 debtor filed an adversary proceeding to discharge her student loan debt pursuant to 11 U.S.C. §523(a)(8).  The lender, Educational Credit Management Corporation, moved to dismiss, arguing that the matter was not ripe for adjudication until… Continue Reading

Section 362(c)(3) Expiration of Automatic Stay For Repeat Filings: What Does It Cover?

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”), as the name implies, included several amendments to the Bankruptcy Code that were intended to curb alleged “abuses” of the Code and Bankruptcy system.   One of the amendments was limiting or eliminating the protections of the automatic stay of §362(a) for repeat filings… Continue Reading

Judge Bonapfel: Above-Median Chapter 13 Debtor Can Deduct Title Pawn Or Non-Purchase Money Debt As Vehicle Ownership Costs In Calculating Disposable Income

In In re Feagan, 549 B.R. 811, Ch. 13 Case No. 15-40823 (Bankr. N.D. Ga. April 8, 2016) (click here for .pdf of opinion), the issue before Judge Bonapfel was “whether an ‘above-median’ Chapter 13 debtor with car payments on account of a nonpurchase-money debt may deduct the Ownership Costs allowance for purposes of calculating… Continue Reading

Agreement To Pay Mortgage On Prior Marital Home Is Not Nondischargeable Domestic Support Obligation

In In re Lawson, Ch. 13 Case No. 13-73476-WLH (click here for .pdf of opinion) the issue was whether a settlement agreement between the Debtor and his former spouse, whereby the Debtor retained (via quit claim deed) the marital home and agreed to make the loan payments, was a nondischargeable domestic support obligation pursuant to… Continue Reading

District Court in N.D. Ga. Finds No Willful Stay Violation Where Creditor Failed To Dismiss Collection Suit After Notice Of Debtor’s Bankruptcy Case

In Alley Cassetty Companies, Inc. v. Wren, No. 2:12-cv-196-WCO, 2013 U.S. Dist. LEXIS 11294 (N.D. Ga. July 22, 2013), the creditor, who had no notice of the Debtor’s Bankruptcy case, filed a collection suit against the Debtor in state court.  After receiving notice of the pending Bankruptcy case, creditor’s counsel informed Debtor’s counsel they would… Continue Reading