Georgia Bankruptcy Blog

Georgia Bankruptcy Blog

Tag Archives: Bankruptcy

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.

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

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

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.

“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

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

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

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

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?

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

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

Arizona Bankruptcy Court – “Ride Through” Still Available For Secured Debts After Failure Of Timely Filed Reaffirmation Agreement

In re Moustafi (click for opinion), Ch. 7 Case No. 4-07-00407-EWH, 2007 Bankr. LEXIS 1925 (Bankr. D. Ariz. June 4, 2007.  The Chapter 7 debtor stated her intention to reaffirm the debt secured by her vehicle. She timely executed the reaffirmation agreement pursuant to §521, and it was accepted by the lender.  However, the court found that debtor’s income… Continue Reading

Texas Bankruptcy Court Finds Georgia Courts Would Not Recognize Tort of Deepening Insolvency; Denies Motion To Dismiss Based On Exculpation Provision

Posted By: Scott B. Riddle, Esq. In Kaye v. Dupree, et al. (In re Avado Brands, Inc.), Adv. No. 05-3823, 2006 Bankr. LEXIS 3631 (Bankr. N.D. Tex. December 28, 2006), the Trustee of the Debtor’s Litigation Trust filed a post-confirmation suit against the Debtor’s former officers and directors.  The causes of action included preferential transfers,… Continue Reading

ND Ga – Bankruptcy Court Has Supplemental Subject Matter Jurisdiction Over Third-Party Claim That Does Not “Arise Under” The Bankruptcy Code Or “Arise In” Bankruptcy Case, And Is Not “Related To” The Bankruptcy Case

Posted By: Scott B. Riddle, Esq. Hospitality Ventures/Lavista v. Heartwood II, LLC, et al (In re Hospitality Ventures/Lavista), Adv. No. 03-06596, 2007 Bankr. LEXIS 39 (Bankr. N.D. Ga. January 3, 2007)(Bonapfel) (click caption for opinion). I will briefly review the facts and conclusions, but I recommend reading the full opinion as the issues are complicated and… Continue Reading

11th Cir – Chapter 7 Trustee Acted Outside Scope Of Authority In Shutting Down Wrong Business; Resulting Lawsuit Not Core Or “Related To.”

By: Scott B. Riddle, Esq. Welt v. MJO Holdings, Inc. (In re Happy Hocker Pawn Shop, Inc.), No. 05-16182, 2006 U.S. App. LEXIS 31639 (11th Cir. December 21, 2006). Prior to filing bankruptcy, the debtor pawn shop had transferred its inventory to the plaintiff in satisfaction of a debt, and the plaintiff thereafter also operated a pawn… Continue Reading

Summary of New Electronic Discovery Rules

The Electronic Discovery Blog has a good summary of the new amendments to the Federal Rules of Civil Procedure as they pertain to electronic discovery.  You can view the post by clicking here. As a side note, the I have upgraded to the new version of Adobe Acrobat 8, and it is a very nice improvement… Continue Reading

Amendments To Federal Rules Of Civil Procedure Effective Friday December 1, 2006

The Amendments to the Federal Rules of Civil Procedure, and by extension the Federal Rules of Bankruptcy Procedure, are effective this coming Friday, December 1, 2006.  You can read a summary of the amendments by clicking here.  All lawyers, including in-house counsel, should be aware of the new rules regarding electronic discovery and the preservation of electronic… Continue Reading