ABI Blog Exchange

What is an Individual Chapter 11 Bankruptcy?

An individual does not usually choose to file a Chapter 11 bankruptcy. If they do choose to file for Chapter 11 it is because they do not qualify for a Chapter 7 or a Chapter 13 bankruptcy. The reason it is less popular is that a Chapter 11

Bankr. E.D.N.C.: B&M Realty v. Elam- Treble Damages of $1.17 Million for Unfair and Deceptive Acts

Bankr. E.D.N.C.: B&M Realty v. Elam- Treble Damages of $1.17 Million for Unfair and Deceptive Acts Ed Boltz Mon, 05/12/2025 - 17:22 Summary: In a blistering opinion befitting the severity of the fraud, Judge David M. Warren awarded B & M Realty, LLC

Equity Won’t Save You: Bankruptcy Court Rules that Principles of Equity Cannot be Used to Extend the Deadline to File a Dischargeability Complaint

Can an LLC Member Interest Owned by a Debtor in Chapter 7 Bankruptcy be Sold by Bankruptcy Trustee?

When we file a Chapter 7 bankruptcy petition for an individual, clients often ask which assets they will be able to keep after the bankruptcy case is closed. Oftentimes, clients own interests in LLCs or partnerships and want to know if they will lose

Bankr. E.D.N.C.- In re 255 NORTH FRONT STREET CONDOS, INC.- Single Asset Real Estate Entity

Bankr. E.D.N.C.- In re 255 NORTH FRONT STREET CONDOS, INC.- Single Asset Real Estate Entity Ed Boltz Sun, 05/11/2025 - 16:20 Summary: In this Subchapter V eligibility skirmish, the United States Bankruptcy Court for the Eastern District of North

Weekly News – May 9

Rite Aid hits the skids, WW body slammed by Ozempic, Claire’s feeling the strain, Andrew Milgram and Tony Yoseloff at the Milken conference, Podcast of the Week, LME litigation in STG, and much, much more… Creditor Corner Your weekly curated content

4th Cir.: NCO v. Montgomery Park- Explicit Demand for Attorney Fees Required

4th Cir.: NCO v. Montgomery Park- Explicit Demand for Attorney Fees Required Ed Boltz Thu, 05/08/2025 - 16:31 Summary: In NCO Financial Systems, Inc. v. Montgomery Park, LLC, the Fourth Circuit revisited — for the fifth time — a protracted commercial

A History Of The Bankruptcy Discharge: From Debtor’s Prison To Uniformity (Central Virginia v. Katz)

By: Donald L Swanson Today, the sole function a bankruptcy discharge is to rid the debtor of debts and, thereby, provide a fresh financial start. But in the 1700s, the focus was on getting a debtor’s body discharged from debtor’s prison, to provide a

4th Cir.: Talley v. Folwell- Overpayment of State Retirement

4th Cir.: Talley v. Folwell- Overpayment of State Retirement Ed Boltz Wed, 05/07/2025 - 16:33 Summary: In Talley v. Folwell, the Fourth Circuit affirmed the dismissal of constitutional claims brought by retired North Carolina teacher Patsy Talley

Law Review: Abigail B. Willie, Do Bankruptcy Judges Belong in Chambers? Rethinking Inherent Civil Contempt Power in Bankruptcy, 90 Brook. L. Rev. 737 (2025).

Law Review: Abigail B. Willie, Do Bankruptcy Judges Belong in Chambers? Rethinking Inherent Civil Contempt Power in Bankruptcy, 90 Brook. L. Rev. 737 (2025). Ed Boltz Tue, 05/06/2025 - 16:59 Available at: https://brooklynworks.brooklaw.edu/blr/vol90

S.Ct.: US. V. Miller

S.Ct.: US. V. Miller Ed Boltz Tue, 05/06/2025 - 15:28 Summary: The Supreme Court held that while §106(a) of the Bankruptcy Code waives sovereign immunity “with respect to” §544 of the Code, that waiver does not extend to the state-law claims that a

A Not-For-Profit Is Eligible For Subchapter V (Guan v. Ellingsworth)

By: Donald L Swanson “We now hold that a not-for-profit company can be ‘engaged in commercial or business activities’ as that phrase is used” in Subchapter V of the Bankruptcy Code. Guan v. Ellingsworth Residential Community Association, Inc., 125 F

Bankr. W.D.N.C.: Martinez Quality Painting v. Newco-Merchant Cash Advances as Avoidable Transfers

Bankr. W.D.N.C.: Martinez Quality Painting v. Newco-Merchant Cash Advances as Avoidable Transfers Ed Boltz Mon, 05/05/2025 - 16:29 Summary: In this adversary proceeding arising from a Chapter 11 case, Martinez Quality Painting & Drywall, Inc. (

What Does Bankruptcy Do to Your Credit?

“Credit Scores Improve Immediately After Filing for Bankruptcy.” That’s from an October 2024 consumer bankruptcy study done by Lending Tree. The average person saw their credit score increase from 533 to 602. (This matches two studies, in 2014 and

When Should A Corporation File Chapter 7?

When an individual files for Chapter 7 relief, the goal is to keep their exempt property and discharge their dischargable debts. A corporation does not receive either of these benefits in Chapter 7, meaning that it turns over all of its property to

Scanning the Horizon: Taking Stock of Current Safe Harbor Jurisprudence

The Ongoing Debate Over the Safe Harbor’s Scope Almost since its enactment, courts have debated the scope of Bankruptcy Code section 546(e), a “safe harbor” that shields certain pre-bankruptcy securities transactions from most avoidance claims

Weekly News – May 2

Put on your rally caps! Saks/Neiman plummet to new lows, Octus private credit rankings out, ‘private’ creditor-on-creditor violence, Isgur cleared of wrongdoing, and much, much more… Creditor Corner Your weekly curated content from the Creditor

What Does Bankruptcy Do to Your Credit?

“Credit Scores Improve Immediately After Filing for Bankruptcy.” That’s from an October 2024 consumer bankruptcy study done by Lending Tree. The average person saw their credit score increase from 533 to 602. (This matches two studies, in 2014 and

E.D.N.C.: Alston v. NCR- Consumer Rights Claims are Not Assignable but are Personal Injury Torts

E.D.N.C.: Alston v. NCR- Consumer Rights Claims are Not Assignable but are Personal Injury Torts Ed Boltz Fri, 05/02/2025 - 17:38 Summary: James Alston, claiming to have been assigned FDCPA claims from a third party (Louis Greene), brought various

Proposed 2025 Formal Ethics Opinion 1- Obligations Related to Notice When the Lawyer Leaves a Firm

Proposed 2025 Formal Ethics Opinion 1- Obligations Related to Notice When the Lawyer Leaves a Firm Ed Boltz Fri, 05/02/2025 - 17:29 Available at: https://www.ncbar.gov/for-lawyers/ethics/proposed-opinions/ Summary: Should this FEO be adopted, these