In re Carroll, 520 B.R. 491 (Bankr. M.D. La. 2014) –
A chapter 7 trustee sought to substantively consolidate the bankruptcy estates of individual chapter 7 debtors with the separate bankruptcy estate of their wholly owned limited liability company (LLC). Only the debtors, and none of the creditors, objected to substantive consolidation.
Liebzeit v. Intercity State Bank (In re Blanchard), 520 B.R. 740 (Bankr. E.D. Wis. 2014) –
A Chapter 7 trustee sought to avoid a mortgage on the debtors’ property using the “strong arm” powers of a hypothetical bona fide purchaser of real estate. The complication was that the debtors sold the real estate on land contract before they granted the mortgage.
The debtor made claims against a surety that issued a performance bond in connection with a construction contract. The surety contended that it was not liable for the consequential damage claims.
When a company is facing short term financial difficulties the directors or shareholders may decide to make a loan to the company to pay wages.
Southside, LLC v SunTrust Bank (In re Southside, LLC), 520 B.R. 914 (Bankr. N.D. Ga. 2014) –
A debtor objected to attorney fees included in the proof of claim filed by a mortgagee, and the mortgagee moved for relief from the automatic stay to exercise its rights under a security deed securing the debtor’s guaranty based in part on the debtor’s lack of equity in the property.
A chapter 7 trustee objected to the claim of a creditor/lessor on the basis that it should be disallowed because the lessor failed to turn over property recoverable using the trustee’s voiding powers, or alternatively, that it constituted a claim for lease termination damages that was subject to a cap.
In re Trackwell, 520 B.R. 788 (Bankr. W.D. Mo. 2014) –
The successful bidder at a bankruptcy auction of a ranch claimed that a cattle chute was included in the sold assets. The debtors disagreed. Resolution of the dispute turned on whether the cattle chute constituted a fixture that was part of the real estate.
A mortgage lender sought sanctions against the debtor, its sole shareholder and its attorney. It alleged that the bankruptcy petition was filed for an improper purpose.