Georgia Bankruptcy Blog

Georgia Bankruptcy Blog

Tag Archives: chapter 7

US Trustee Investigating Possible Scheme to Take Debtors’ Equity in Real Property in Multiple Cases; Lawyer Sanctioned

In a very detailed 91-page Order entered in the Northern District of Georgia- and adopted by all Judges in the District – Judge Sacca addressed serious concerns of the United States Trustee over the handling of a Chapter 13 case by the Debtor’s lawyer. The United States Trustee is also investigating several other cases with… Continue Reading

The Discharge Injunction – Violations and Damages

It seems like violations of the discharge injunction get much less publicity than violations of the automatic stay.  Perhaps that is because by the time a discharge is entered the creditor has received the message.  When there is a violation the Eleventh Circuit has a good body of law on the issue and I happen… Continue Reading

The Trap of Merchant Cash Advances and Financing

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).

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

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?

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?”

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

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

Fourth Circuit: Debtors Entitled To Full National And Local Standard Amount Of Expenses If They Incur An Expense In That Category.

Our neighbors to the north recently had a key, debtor-friendly, decision in a Chapter 7 case regarding what expenses may be used in the means test calculations.  In In re Jackson, 2017 WL 59011, Ch. 7 No. 16-1358 (4th Cir., January 5, 2017) the debtors had used the entire amount allowed by the “National and… Continue Reading

New Means Test Figures For Cases Filed After January 1, 2008

"Updated" Means Test Numbers for October 1, 2008.  If the numbers look similar, it is because they did not change.   Median Income For Georgia Household Size Current Median (pre 1/1/2008) New Median (10/1/2008)           1     $38,086      $39,253           2     $50,001      $52,055           3     $57,254      $59,668           4*… Continue Reading

3rd Cir. – Section 546 Statute of Limitations Expired Prior To Election of “Permanent Trustee,” Thus Barring Avoidance Actions

By: Scott B. Riddle, Esq. This opinion could by very important in Chapter 11 (or 13) cases that are nearing their two-year anniversary and in danger of conversion. In Singer, Trustee v. Franklin Boxboard Co. (In re American Pad & Paper, Co.), No. 05-1379, 2007 Bankr. LEXIS 4792 (3rd Cir. March 2, 2006), the Chapter 11 Order… Continue Reading