North Carolina

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.

Fraudulent Transfer Suit Didn’t Succeed in ‘Discharging’ Student Loans

Can student loans be wiped out as fraudulent transfers that aren’t dischargeable under Section 523(a)(8)?

Subchapter V Trustee Barred from Routine Retention of Counsel

Bankruptcy Judge David Warren warns small business trustees that they won’t be compensated if they are “overzealous” or undertake “unnecessary or duplicative services.”

Judge Kahn Finds No Constitutional Infirmities in Applying the SBRA Retroactively

Because the SBRA’s foundation is chapter 11, the new statute may be applied constitutionally to rights or property interests arising before enactment.

Separate Classification of a Child’s Student Loan Barred in a Chapter 13 Plan

Factors in permitting separate classification of debts include moral obligation and tangible benefit.

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