By Scott Riddle Posted in News and Comments,Northern District Cases,Small Business BankruptcyThe Governors Gun Club of Kennesaw filed a Chapter 11 case in the Northern District of Georgia on August 17, 2022. Case No. 22-20787-jrs. The reason for the filing, as stated in pleadings filed with the Court – Like so many other small businesses, the Debtor suffered a series of setbacks at the hands of… Continue Reading
By Scott Riddle Posted in Eleventh Circuit Cases,Northern District CasesIn 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
By Scott Riddle Posted in Consumer Bankruptcy Guide,Northern District CasesIn 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
By Scott Riddle Posted in Eleventh Circuit Cases,Northern District CasesOnce 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
By Scott Riddle Posted in Northern District Cases[Updated – The Trustee has filed a Motion for Rehearing (click here for .pdf of motion). That Motion was denied on July 12, 2022 (click here for Order]. In this lengthy post, we discuss Judge Paul Bonapfel’s 73-page Order in which he skewered the fee application of a Chapter 7 Trustee and effectively changed the… Continue Reading
By Scott Riddle Posted in Eleventh Circuit Cases,Georgia State Cases,Northern District CasesIn 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
By Scott Riddle Posted in Northern District CasesIn what certainly will be one of most important and talked-about orders to come out of the Northern District of Georgia in some time, Judge Paul Bonapfel eviscerated a fee application filed by a Chapter 7 Trustee and counsel. The case is In re McConnell, Case No. 19-67128-pwb, 2021 WL 203331 (Bankr. N.D.Ga. October 28,… Continue Reading
By Scott Riddle Posted in News and Comments,Northern District Cases“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
By Scott Riddle Posted in Northern District CasesThe Krystal Company files Chapter 11 Bankruptcy Petition in the Northern District of Georgia on January 19, 2020. Case No. 20-61065. The company is represented by King & Spalding. According to pleadings, the company owns 182 Krystal restaurant locations.… Continue Reading
By Scott Riddle Posted in Northern District CasesThis is an issue that comes up fairly often, although normally no objections are made for a Rule 2004 examination. As long as the lawyer is not obstructive, it is usually not worth the additional time and expense of filing an objection. In In re Craig, Ch. 7 Case No. 16-59582, 2017 WL 713572 (Bankr.… Continue Reading
By Scott Riddle Posted in Northern District CasesIt is the rare Chapter 7 case that ends up with sufficient estate assets to pay all claims in full, plus interest as required by 11 U.S.C. §726(a)(5). The question addressed by Judge Sacca in In re Robinson, Ch. 7 Case No. 15-51556, 2017 WL 713571 (Bankr. N.D. Ga. February 22, 2017) (click here for… Continue Reading
By Scott Riddle Posted in Northern District CasesIn 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
By Scott Riddle Posted in Northern District CasesIn In re Anzo, Ch. 7 Case No. 14-22766-jrs, 2017 WL 432787 (Bankr. N.D. Ga. January 30, 2017) (click here for .pdf of opinion), the debtor had been granted a discharge on September 29, 2015 and the case was closed on the same date. Almost a year later, on September 27, 2016 (two days prior… Continue Reading
By Scott Riddle Posted in Northern District CasesIn 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
By Scott Riddle Posted in Northern District CasesThe 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
By Scott Riddle Posted in Northern District CasesIn 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
By Scott Riddle Posted in Northern District CasesFunds in joint bank accounts can generally be accessed by all account-holders — each of them can withdraw all of the money in the account regardless of who actually deposited the funds in the account. This is often the reason for having a joint account. This can create a huge problem for the account holders… Continue Reading
By Scott Riddle Posted in Northern District CasesIn In re Pete, Ch. 13 Case No. 15-63725-JRS, 2015 WL 8540438 (Bankr. N.D. Ga. Dec. 8, 2015), the debtor husband and wife filed a joint Chapter 13 case, disclosing a combined total of unsecured debt of more than $475,000. The Chapter 13 Trustee objected to confirmation and filed a motion to dismiss, alleging that… Continue Reading
By Scott Riddle Posted in Northern District CasesIn 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
By Scott Riddle Posted in Northern District CasesIn a July 2015 case the Chapter 7 Trustee sold a house that was underwater with three liens, and received a carve-out from the lender that held the second and third liens. The Debtors did not object to the sale, but to the Trustee’s Final Report because it did not allow for payment of their… Continue Reading
By Scott Riddle Posted in Northern District CasesIn In re Cochran, Ch. 7 Case No. 13-43242, 2014 Bankr. LEXIS 1178 (Bankr. N.D. Ga. Feb. 10, 2014), the issue in the motion to avoid lien was whether funds paid into court pursuant to a Summons of Garnishment are property of the Bankruptcy estate after a case is filed. Judge Mary Grace Diehl held… Continue Reading
By Scott Riddle Posted in Northern District CasesIn Howell v. U.S. Foods, Inc., Ch. 7 Case No. 11-13160, Adv. Proc. No. 13-1054, 2014 Bankr. LEXIS 681 (Bankr. N.D. Ga. Feb. 5, 2014) (click here for .pdf of Order), the individual debtor owned and managed a restaurant incorporated as Bilbo’s Bar-B-Que, Inc. However, the Trustee alleged that the Debtor operated the business as… Continue Reading
By Scott Riddle Posted in Northern District CasesLast week I was at a final hearing on fee applications on behalf of a Chapter 7 Trustee, in a case in which the debtor had failed to disclose a pre-petition personal injury case pending in another state. The defendants in that case ultimately founds out about the Bankruptcy case about a year after it… Continue Reading
By Scott Riddle Posted in Northern District CasesIn 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
