Georgia Bankruptcy Blog

Georgia Bankruptcy Blog

Category Archives: Northern District Cases

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In Case of First Impression in Eleventh Circuit, Bankruptcy Court Holds That Overpayment of Domestic Support Obligation Is Entitled to Priority Status

In a case of first impression in the Northern District of Georgia, and perhaps the Eleventh Circuit, the Court held that a claim for the overpayment of a domestic support obligation was entitled to priority status under 11 USC § 507(a)(1)(A).  In In re Knott, Ch. 7 Case No. 09-90822, 2012 Bankr. LEXIS 5063 (Bankr.… Continue Reading

The Importance of Proper Planning: Partnership & Trust Assets of Deceased Spouse Become Property of Bankruptcy Estate

A recent opinion involves the convergence of a family partnership, will and probate estate, trust and Bankruptcy estate and highlights the need for appropriate planning and quality legal advice for each step in order to avoid a negative result years down the road. In Trauner, Ch. 7 Trustee v. Thadikamalla, et al, Adv. Proceeding No.… 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

Allied Systems Holdings Files Another Chapter 11 Petition…One Week After Prior Chapter 11 Ends.

Allied Holdings, Inc. and related entities , based in Decatur, Georgia, filed Chapter 11 petitions in the Northern District of Georgia on  July 31, 2005 (Ch. 11 Case No. 05-12515).   Their Joint Plan of Reorganization was confirmed on May 18, 2007.  The Final Decree was entered just last week, on June 5, 2012 and the case was closed. … Continue Reading

Creditor Forces Individual, Non-Consumer Debtor Into Chapter 11; Debtor’s Claims Of Unconstitutional Involuntary Servitude And Unlawful Peonage Fail.

In In re Derrick Dewayne Gordon, Ch. 11 Case No. 11-62509, 2012 Bankr. LEXIS 2012 (Bankr. N.D. Ga. January 23, 2012)(Judge Wendy Hagenau) (click here for .pdf of 32 page opinion), the issues before the Court were: 1) Could a creditor of an individual Chapter 7 Debtor, with non-consumer debt, move to convert the case to… Continue Reading

Facebook Files Discharge Complaint For Debtor’s Alleged Unlawful Domain Name TypoSquatting

On December 5, 2011, Facebook, Inc. filed an adversary proceeding in the Northern District of Georgia seeking a determination that a debt arising from alleged "typosquatting" by the debtor should be excepted from the debtor’s discharge.  The proceeding is Facebook, Inc. v. Souza, A.P. No. 11-05684 (N.D. Ga. filed December 5, 2011) (click here for .pdf… Continue Reading

11th Circuit Affirms Availability Of “Value” Defense For Recipients Of Fraudulent Transfers Who Were Equity Holders Of Debtor

In Perkins v. Haines, et al, No. 10-10683 (11th Cir. October 27, 2011) (click here for .pdf of opinion), the 11th Circuit took a direct appeal of the Bankruptcy Court’s order concerning the "value" defense in fraudulent transfer proceedings. The basic facts are as follows.  International Management Associates, LLC and related entities were operated as a… Continue Reading

Cagle’s Farms Files Chapter 11 Bankruptcy Petition In Georgia; Reclamation Claims Filed.

Cagle’s Farms filed Chapter 11 Petitions in the Northern District of Georgia on October 19, 2011.  The related cases are In re Cagle’s, Inc. (dba Integrated Poultry Company), Ch. 11 Case No. 11-80202 and In re Cagle’s Farms, Inc., Ch. 11 Case No. 11-80203.  The cases are jointly administered under Cagle’s Inc.  Click here for the skeletal… 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

Mrs. Winner’s Chicken & Biscuits Files Chapter 11 Bankruptcy Petition in N.D. Georgia

Mrs. Winner’s Chicken & Biscuits, a fast food chain familiar to Atlanta residents has filed a Chapter 11 Bankruptcy petition in the Northern District of Georgia.  In re Famous Recipe Company Operations, LLC d/b/a Mrs. Winner’s Chicken & Biscuits, filed November 10, 2010.  Ch. 11 Case No. 10-94027 (click here for petition and schedules). The Schedules show that the… Continue Reading