Rochellel's Daily Wire

April 23, 2025

A Homeowners’ Association Is Not a ‘SARE’ and Is Eligible for Sub V of Chapter 11

A homeowners’ association is not a single asset real estate debtor because the HOA’s income doesn’t come from the common areas but from assessments paid by unit owners.

4th Circuit, North Carolina, North Carolina Eastern District

March 14, 2025

Chapter 13 Debtors Can’t Sell Co-Owned Property Under Section 363(h)

On a question where the courts are split, Bankruptcy Judge Pamela McAfee sides with the majority and holds that a chapter 13 debtor can’t sell co-owned property.

4th Circuit, North Carolina, North Carolina Eastern District

March 15, 2024

Being a ‘Net Winner’ in a Ponzi Scheme Doesn’t Automatically Mean Nondischargeability

Alleging that a debtor realized an ‘impossibly high’ rate of return in a Ponzi scheme isn’t enough to state a claim of nondischargeability for ‘actual fraud.’

4th Circuit, North Carolina, North Carolina Eastern District

February 27, 2024

Lack of Financial Distress Doesn’t Divest a Court of Subject Matter Jurisdiction

Two North Carolina Courts have held within two months that the Bankruptcy Clause doesn’t demand ‘financial distress’ to establish subject matter jurisdiction.

4th Circuit, North Carolina, North Carolina Western District

January 04, 2024

With Reservations, a Chapter 11 Debtor with No Financial Distress Avoids Dismissal

Bankruptcy Judge Whitley says that a no-opt-out plan for a solvent debtor might violate creditors’ due process and jury trial rights.

4th Circuit, North Carolina, North Carolina Western District

December 06, 2023

Scheduling a Home with a Low Value Didn’t Protect a ‘13’ Debtor When It Was Sold

In the Fourth Circuit, creditors are compensated when there is a ‘substantial improvement’ in a chapter 13 debtor’s financial condition.

4th Circuit, North Carolina, North Carolina Middle District

March 21, 2023

Another Court Won’t Permit a Structured Sale to Eradicate a Homestead Exemption

Subordinated lenders can’t take a ‘haircut,’ give a ‘tip’ to the trustee, sell a home and eradicate the debtor’s homestead exemption.

4th Circuit, North Carolina, North Carolina Western District

December 22, 2022

A Section 542(b) Turnover Action Can’t Be Used to Compel Payment of a Judgment

Writs of execution and supplemental proceedings, not turnover actions, are the methods for enforcing a money judgment, Bankruptcy Judge Warren says.

4th Circuit, North Carolina, North Carolina Eastern District

September 27, 2022

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.

4th Circuit, North Carolina, North Carolina Eastern District

August 03, 2022

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.

4th Circuit, North Carolina, North Carolina Western District