A recent decision from a bankruptcy court in Delaware provides a cautionary tale about the risks of involuntary bankruptcy. In the Delaware case, the debtor managed a group of investment funds. The business was all but...more
3/13/2024
/ Attorney's Fees ,
Automatic Stay ,
Bankruptcy Court ,
Chapter 7 ,
Commercial Bankruptcy ,
Damages ,
Debtors ,
Delaware ,
Involuntary Bankruptcy ,
Legal Costs ,
Willful Violations
In North Carolina, a loan agreement can require a borrower to pay attorneys' fees upon default to reimburse the lender for collection expenses....more
Most community associations already know the Planned Community Act allows them to place a lien on a delinquent homeowner's property and foreclose on that interest. But to do so, associations must comply strictly with the...more
It is a cardinal sin to attempt to collect a debt or repossess collateral after a borrower files bankruptcy.
Bankruptcy triggers the automatic stay – a command, not a suggestion, that collection activity ceases. This is a...more
8/18/2020
/ Adjournment ,
Attorney's Fees ,
Automatic Stay ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 7 ,
Commercial Bankruptcy ,
Creditors ,
Criminal Prosecution ,
Embezzlement ,
Popular
Bankruptcy court is not the first place that comes to mind when a lender thinks about full recovery on a loan.
Usually, debtors file bankruptcy because they can't pay all their creditors in the ordinary course of business....more
When your customer is in bankruptcy, there are two major no-nos that you must remember.
First, don't violate the automatic stay, which prevents a creditor from attempting to collect a debt while the debtor is in bankruptcy...more
6/27/2019
/ Appeals ,
Attorney's Fees ,
Bankruptcy Appellate Panel (BAP) ,
Bankruptcy Code § 524(a) ,
Bankruptcy Discharge Order ,
Chapter 7 ,
Civil Contempt Orders ,
Concurrent Litigation ,
Creditors ,
Dischargeable Debts ,
Injunctive Relief ,
Money Judgment ,
Reasonable Belief Test ,
Remand ,
Reversal ,
SCOTUS ,
Standard of Review ,
Statutory Violations ,
Taggart v Lorenzen ,
Vacated
The United States Court of Appeals for the Fourth Circuit — which covers federal courts in North Carolina — recently handed a big victory to lenders whose borrowers file for bankruptcy protection.
In SummitBridge National...more
The United States District Court for the Middle District of North Carolina recently issued a decision that demonstrates the power of attorneys’ fees provisions in promissory notes and guaranty agreements. In TD Bank v. Jay...more