Georgia Bankruptcy Blog

Georgia Bankruptcy Blog

Tag Archives: Bankruptcy

The Trap of Merchant Cash Advances and Financing

By Scott Riddle Posted in Consumer Bankruptcy Guide, Miscellaneous Cases, News and Comments, Small Business Bankruptcy
If you have a business, you have no doubt received advertisements for “merchant cash advances,” “merchant loans” or “merchant financing,” whether or not those specific terms are used.  If in doubt, just do a search for those terms and you will get a couple pages of sponsored ads (but be warned the big brother of… Continue Reading

In Case of First Impression 11th Circuit Holds Debt of PACA Trustee Not Excepted From Discharge Pursuant to 11 U.S.C. §523(a)(4).

By Scott Riddle Posted in Eleventh Circuit Cases
In a case of first impression in the Eleventh Circuit, the Circuit Panel addressed the dischargeability of debts incurred by a produce buyer who is acting as a trustee under the Perishable Agricultural Commodities Act (“PACA”).  In re Forrest, 2022 WL 3908803 (11th Cir. August 31, 2022)(click here for .pdf).   The court concluded that debts… Continue Reading

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

By Scott Riddle Posted in Eleventh Circuit Cases, Northern District Cases
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?

By Scott Riddle Posted in Consumer Bankruptcy Guide, Northern District Cases
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?”

By Scott Riddle Posted in Eleventh Circuit Cases, Northern District Cases
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

Eleventh Circuit Addresses Deadlines to Appeal Order of District Court (when Acting as Bankruptcy Appellate Court) to Court of Appeals

By Scott Riddle Posted in Eleventh Circuit Cases
In a relatively brief opinion, the Eleventh Circuit Court of Appeals ruled on the deadlines for appealing an order from the District Court (acting as an appellate court for a Bankruptcy Court Order) to the Court of Appeals.  Appellants appealed a Bankruptcy Court Order to the District Court for the Northern District of Georgia.  On… Continue Reading

Elite Bankruptcy Consulting Firms Battle It Out With Fraud and RICO Claims Related to Bankruptcy Disclosures and Lost Engagements

By Scott Riddle Posted in Corporate & Fiduciary Litigation, Miscellaneous Cases
In Jay Alix, as assignee of AlixPartners, LLP v. McKinsey & Co., Inc., 2022 WL 163800 (2nd Cir., January 19, 2022) (click here for .pdf), two major competitors in the niche market of Bankruptcy advising to estates with a billion dollars or more of assets were in court against each other over lucrative consulting assignments.… Continue Reading

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

By Scott Riddle Posted in Eleventh Circuit Cases, Georgia State Cases, Northern District Cases
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

11th Circuit – Creditor Cannot Pursue Pre-Petition Fraudulent Transfer Claims Against Debtor for Non-Dischargeable Debt; Establishes Standard of Review for In re Jet Florida.

By Scott Riddle Posted in Eleventh Circuit Cases
In SuVicMon Development, Inc. v. Morrison, __ F.3d __, 2021 WL 1136546 (11th Cir. March 25, 2021) (click here for .pdf), the plaintiffs are three corporations that sued the Debtor for fraud and securities violations in state court. Plaintiffs subsequently amended the complaint to include fraudulent transfer claims against Debtor and his two sons. Debtor… Continue Reading

Second Circuit Court Of Appeals: “We Said What We Said” About Brunner Test And Student Loans

By Scott Riddle Posted in Consumer Bankruptcy Guide, Miscellaneous Cases
In In re Tingling, __ F3d __, 2021 WL 922448 (2nd Cir. March 11, 2021) (click for .pdf), the Debtor filed an adversary proceeding seeking discharge of her student loans.  The Bankruptcy Court determined that the debtor failed to meet the Brunner Test, and the District Court affirmed.  The Debtor appealed to the Second Circuit,… Continue Reading

Eleventh Circuit Allows Individual Chapter 11 Debtor To Argue Appointment Of Trustee Violated Thirteenth Amendment

By Scott Riddle Posted in Eleventh Circuit Cases
In In re Breland, __ F.3d __ , 2021 WL 910657 (11th Cir., March 10, 2021) (click here for .pdf) the individual Debtor filed a voluntary Chapter 11 petition.  After it was determined that he was transferring assets and defrauding his creditors a Chapter 11 Trustee was appointed. [Debtor] protested that the trustee’s appointment violated… Continue Reading

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

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

Reese v. Provident Funding: Georgia Court of Appeals Ruling Potentially Invalidates Thousands Of Foreclosures

By Posted in Georgia State Cases, Miscellaneous Cases, News and Comments
In a case of first impression, the Georgia Court of Appeals has held that a foreclosure notice must identify both the secured lender and the "individual or entity who shall have full authority to negotiate, amend, and modify all terms of the mortgage with the debtor."  Reese v. Provident Funding Associates, LLP, 2012 Ga. App. LEXIS… Continue Reading

Assignments of Trademarks in Bankruptcy – Judge Posner and 7th Circuit Provide Answer

By Posted in Corporate & Fiduciary Litigation, Miscellaneous Cases, News and Comments, Small Business Bankruptcy
The Seventh Circuit Court of Appeals has issued the first published Circuit Court opinion on the question of whether trademarks are assignable in a Bankruptcy case.  The opinion, authored by Judge Posner, is in the case of In re XMH Corp., Nos. 10-2596, 10-2597, 10-2598, 10-2599,  2011 U.S. App. LEXIS 15372 (7th Cir. July 26, 2011) (click… Continue Reading

Foreclosures Hit Record High In Metro Atlanta

By Posted in News and Comments
From the Atlanta Journal Constitution – A record number of metro Atlanta properties are scheduled to be auctioned on the courthouse steps next month, according to numbers released Tuesday by Equity Depot, an Alpharetta company that tallies foreclosures. … In the 13-county metro area, 7,335 properties are scheduled for courthouse auctions, Equity Depot said. The… Continue Reading

The Rumor Mill: Jefferson County, Alabama, Which Includes Birmingham, Might Be Largest U.S. Municipal Bankruptcy

By Posted in News and Comments
From Bloomberg – April 11 (Bloomberg) — They’re talking more about Chapter 9 municipal bankruptcy in Jefferson County, Alabama, the home of the largest city in the state, Birmingham. Who can blame them? The county is now being whipsawed by an ill-thought-out debt policy and the collapse of the bond insurers. Credit-rating downgrades all around… Continue Reading

Is Section 522(p) of the Code – The Exemption Cap For Debtors Who Have Recently Made Interstate Moves – Unconstitutional?

By Posted in News and Comments
Professor John Pottow of the University of Michigan Law School thinks so in his latest Credit Slips post. The Code section in question is Section 522(p), which provides as follows – (p)(1) Except as provided in paragraph (2) of this subsection and sections 544 and 548, as a result of electing under subsection (b)(3)(A) to exempt… 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

By Posted in Miscellaneous Cases
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