Georgia Bankruptcy Blog

Georgia Bankruptcy Blog

Category Archives: Northern District Cases

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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

Bankruptcy Court Has Jurisdiction To Enter Final Judgment On Fraudulent Transfer Claims; Judge Sacca Follows Narrow View Of Stern v. Marshall

In a 28 page opinion, Judge Sacca of the Northern District of Georgia held that Bankruptcy Courts have jurisdiction to enter final orders in some cases involving fraudulent transfer claims. Mitchell v. Banks, Adv. Proc. No. 12-0562, 2013 Bankr. LEXIS 2384 (Bankr. N.D. Ga. June 5, 2013) (click here for opinion).  Judge Sacca based his… 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

Single Premium Annuity Exempt In Bankruptcy, Says Georgia Supreme Court.

The Georgia Supreme Court recently answered certified questions from the Eleventh Circuit Court of Appeals regarding whether a single premium annuity was exempt in a Chapter 7 case, where the annuity was purchased a year before filing with $220,000 in inherited funds.  A debtor’s transfer of $220,000 a year before filing Chapter 7 is certainly… Continue Reading

Security Deed Lacking Signature of Additional Witness and Improperly Identifying Property Was Invalid in Georgia, says Eleventh Circuit

In National City Mortgage v. Gordon (In re Bennett), No. 12-13239, 2013 U.S. App. LEXIS 10765 (11th Cir. May 29, 2013) (click here for .pdf), the issue was the validity of a Security Deed that did not contain the signature of “one additional witness,” as required by O.C.G.A. § 44-14-33 and identified a larger tract of… Continue Reading

Bankruptcy Rule Establishing Deadline To File Dischargeability Complaint Is Strict, “Hard And Fast” Rule.

In United Community Bank v. Harper (In re Harper), Adv. Proc. No. 12-1080, 2013 Bankr. LEXIS 1080 (Bankr. N.D. Ga. January 29, 2013 (Judge Drake) (click here for .pdf of order), the issue was whether Federal Rule of Bankruptcy Procedure 4007(c)  created a strict deadline for filing adversary complaints to determine dischargeability of debts under §523(c). Judge Drake… Continue Reading

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