Tag Archives: U.S. Bankruptcy Court

Secured Creditor – Collateral – ‘Inconsequential Value’ (access required)

Holding: Although the secured creditor’s claim is for $3,256,020.67 while the collateral is valued at only $432,575, since the value of the creditor’s lien is approximately 13 percent of the value of its total claim, the court cannot say that the collateral is “of inconsequential value” within the meaning of 11 U.S.C. § 1111(b)(1)(B)(i).

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Lender sanctioned for repeated violations of automatic stay (access required)

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.

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Class action challenges LPS’ grip on foreclosures (access required)

Ever heard of LPS? Many attorneys haven't. But LPS - Lender Processing Services, Inc. - and like business entities exercise more day-to-day control over the conduct of bankruptcy, default and foreclosure cases in North Carolina and beyond than actual "clients." At least that is what several recent lawsuits allege. Shelby-based bankruptcy and foreclosure defense attorney O. Max Gardner III (pictured) said LPS and other providers are "very concerned about network lawyers discussing anything with outside entities."

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Mediated settlement reached in Indian Beach condo dispute (access required)

The plaintiff was serving as general contractor on a 70-unit condominium project located at Indian Beach (“the project”) in a contract with Shearin Family Investments, LLC (“Shearin”). The defendant was the construction lender for the project. Beginning in 2007, the ...

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