Lawsuits and collection actions against a corporation are automatically stayed when the corporation files for bankruptcy, generally speaking. In order to avoid the automatic stay, creditors may bring claims against the directors and/or officers of the bankrupt corporation rather than against the corporation itself.
Last December, the American Bankruptcy Institute’s Commission to Study the Reform of Chapter 11 released a 400-page report on recommended changes to Chapter 11 of the Bankruptcy Code. ABI formed the Commission in 2012 to evaluate business reorganization laws in light of the challenging economic climate and the perception that the costs and complexities associated with filing Chapter 11 have made Chapter 11 filings substantially less viable for businesses experiencing financial difficulty.
Courts almost always treat fraud claims as per se (automatic) violations of N.C. Gen. Stat. § 75-1.1. Does that mean that fraudulent transfers of assets, likewise, automatically support recovery under section 75-1.1?
In pari delicto is an equitable defense asserted when a defendant claims that a plaintiff is equally at fault for the wrong that has befallen him. The doctrine is “rooted in the common-law notion that a plaintiff’s recovery may be barred by his own wrongful conduct.” Pinter v. Dahl, 486 U.S. 622, 632 (1988) (citing Bateman Eichler, Hill Richards, Inc. v. Berner, 472 U.S. 299, 306 (1985)).