North Carolina Lawyers Weekly

Mar 26, 2026

Automatic stay claims remain in bankruptcy court despite arbitration clause

The 4th U.S. Circuit Court of Appeals held that bankruptcy debtors’ claims alleging post-petition collection efforts in violation of the automatic stay were too central to the bankruptcy process […]

May 14, 2015

Bankruptcy — Automatic Stay – Police & Regulatory Exception – Unauthorized Practice of Law & Unlawful Debt Adjustment

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 […]

Apr 30, 2014

Bankruptcy – Real Property – Fixtures – Automatic Stay – Lifting – Unconfirmed Plan – Bad Faith

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 […]

Oct 11, 2012

Bankruptcy – Automatic Stay – Post-Petition Contract – Vehicle Fuel

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.

Sep 26, 2012

Bankruptcy – Automatic Stay – Willful Violation – Real Property – Mortgage Foreclosure – Misspelled Name – Punitive Damages

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.

Dec 1, 2011

Bankruptcy – Negotiable Instruments – Promissory Note – Indorsed in Blank – Real Property – Mortgages – Automatic Stay

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 motio[...]

Nov 10, 2011

Bankruptcy – Rents – Cash Collateral – Attorney’s Retainer – Automatic Stay

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 p[...]

Nov 2, 2011

Bankruptcy – Automatic Stay – Violation – Sanctions – Post-Discharge Collection – Student Loans – Excepted from Discharge

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 univer[...]

Nov 2, 2011

Bankruptcy – Automatic Stay – Motion for Relief – Value of Collateral – Equity — Officers’ Salaries

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. [...]

Apr 15, 2011

Lender sanctioned for repeated violations of automatic stay

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 Kri[...]

Sep 30, 2010

Bankruptcy – Foreclosure – Automatic Stay – Equity of Redemption – 10th Day – Normal Business Hours

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 […]