North Carolina

Judge McAffee Agrees with Former Judge Sontchi on Authorized Corporate Actions

The automatic stay does not bar increasing authorized shares when the debtor is a minority shareholder.

The PBGC Isn’t a ‘Triggering Creditor’ for a Section 544(b) Suit by a Trustee

If the government isn’t suing on a claim originally owing to the U.S., a trustee can’t use the six-year statute of limitations in the FDCPA.

Johnson & Johnson Venue Transferred from North Carolina to New Jersey

Deciding to transfer venue, a North Carolina bankruptcy judge said that the debtor underwent a corporate restructuring ‘purely for the purpose of filing bankruptcy.’

NC Appellate Court Rules Plans Must Be Unambiguous to Hold a Creditor in Civil Contempt, Citing Taggart

After Taggart v. Lorenzen, plans, orders and injunctions must be highly specific to hold an offending creditor in contempt.

Unlike IRAs, Debtors Keep Inherited 401(k)s Because They Aren’t Estate Property

Exemptions never come into play with inherited 401(k)s because they aren’t estate property in the first place, Judge Hodges explains.

Debt from a Defunct Business Can Help to Qualify for Subchapter V

Part-time self-employment, coupled with debt from a defunct business, qualified the debtor for reorganization under Subchapter V of chapter 11.

The Mailbox Presumption Won’t Deem a Claim to Have Been Timely Filed

Courts are split on the extent to which an affidavit of timely mailing will suffice to prove that a claim was filed.

Split Widens on Trustee’s Ability to Use the IRS’s Longer Statute of Limitations

North Carolina Judge disagrees with the Fifth Circuit on extending the statute of limitations to 10 years under Section 544(b)(1).

Unrepentant Lender Slammed with $260,000 in Damages for an ‘Egregious’ Stay Violation

Lender soon recognized that home foreclosure violated the stay but continued denying liability through seven years of litigation.

Creditor Socked with $41,000 in Sanctions for Filing Trumped-Up Criminal Charges

Bankruptcy Judge Warren makes sure the sanctions won’t be dischargeable if the offending creditor files his own bankruptcy.

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