State ex rel. Cooper v. Orion Processing, LLC (Lawyers Weekly No. 15-15-0438, 5 pp.) (James Gale, C.J.) 2015 NCBC 48 Holding: Plaintiffs’ allegations relate to the unauthorized practice of law and violations of the prohibition on unlawful debt adjustment, and ...

Tagged with: Automatic Stay Bankruptcy

In re Eng (Lawyers Weekly No. 14-05-0387, 13 pp.) (Stephani Humrickhouse, J.) 13-02195-8; E.B.N.C. Holding: Items that have been left in place by several successive owners of the convenience stores at issue, including fuel storage tanks, walk-in coolers, and outdoor ...

Tagged with: Automatic Stay

In re Construction Supervision Services, Inc. Even though the creditor did not realize that the automatic stay applies to post-petition contracts, the creditor willfully violated the automatic stay when it disabled the debtor’s fuel pumps because of the debtor’s failure to pay at the usual time.

Tagged with: Automatic Stay Bankruptcy

In re Gallo Despite having notice of the debtor’s bankruptcy, and despite notes in their own files about the misspelling of the debtor’s name, since the creditors’ software program failed to list the debtor’s name in a bankruptcy search result, the creditors continued their collection efforts against the debtor, going so far as to schedule a foreclosure.

Tagged with: Automatic Stay Bankruptcy Punitive Damages Real Property

In re Robinson Where the debtor’s promissory note has been indorsed in blank, and where Residential Credit Solutions (RCS) entered the original promissory note with the blank indorsement into the evidence, RCS is the holder of the note because it is in possession of the original note indorsed in blank. Since RCS has agreed to accept the debtor’s proposed payment plan, RCS’s motion for relief from the automatic stay is denied.

Tagged with: Automatic Stay Bankruptcy mortgages negotiable instruments promissory note Real Property

In re Smithville Crossing, LLC Where the debtor’s agreement with its lender allowed the lender to collect rents from the debtor’s tenants if the debtor defaulted on its loan payments, the debtor was entitled to continue collecting rents between its default and the lender’s notice to the debtor and its tenants that rents were thereafter to be paid to the lender. The rents collected post-default and pre-notice could be used by the debtor as it saw fit, including as payment of a retainer to its attorney. The creditor’s motion to disgorge the retainer is denied. The creditor’s motions to dismiss and for relief from the automatic stay are also denied. The debtor’s motion for turnover of post-petition rents held by the creditor is denied as well.

Tagged with: Automatic Stay Bankruptcy

In re Green Even though the creditor-university has now changed its procedures so that it will not attempt to collect a student’s debts when the university is subject to an automatic bankruptcy stay, the university should not have waited until 2010 to do so. The debtor’s motion for sanctions for violation of the automatic stay is granted in the amount of $2,000. However, the university is not in contempt of court for its post-discharge attempts to collect certain student loan and overpayment amounts.

Tagged with: Automatic Stay Bankruptcy sanctions Student Loans

In re M.C. Pipe, Inc. The creditor has a security interest in the debtor-in-possession’s real property, equipment, inventory and accounts receivable. When these assets are assigned their fair market value, the assets’ value exceeds the creditor’s secured claim; therefore, the debtor has equity in the collateral, and the creditor is not entitled to relief from the automatic stay. The creditor’s motion for relief is denied. The debtor’s motion to employ and compensate officers is granted in part.

Tagged with: Automatic Stay Bankruptcy Motion for Relief

A lender that repeatedly entered a couple's property despite the fact that an automatic stay had been imposed during bankruptcy proceedings has been sanctioned for the violation. The sanction came in In re Sands, a matter in the U.S. Bankruptcy Court for the Middle District of North Carolina. HSBC bank was ordered to pay the Sands' $1,200 in attorney's fees incurred when Winston-Salem attorney Kristen S. Nardone brought the motion for sanctions and appeared at two hearings on the motion.

Tagged with: attorney's fees Automatic Stay Punitive Damages U.S. Bankruptcy Court

In Re Sarver. (Lawyers Weekly 10-05-0945, 7 pp.) (William L. Stocks, J.) M.B.N.C. Holding: A purchaser at a non-judicial foreclosure sale is entitled to obtain and record a deed and to recover possession of real property where the debtor filed ...

Tagged with: Automatic Stay Bankruptcy foreclosure