%1

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

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

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

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.

Deciding to transfer venue, a North Carolina bankruptcy judge said that the debtor underwent a corporate restructuring ‘purely for the purpose of filing bankruptcy.’

Exemptions never come into play with inherited 401(k)s because they aren’t estate property in the first place, Judge Hodges explains.

North Carolina Judge disagrees with the Fifth Circuit on extending the statute of limitations to 10 years under Section 544(b)(1).

Lender soon recognized that home foreclosure violated the stay but continued denying liability through seven years of litigation.

Judge follows statutory language that didn’t achieve the result Congress intended.

Financing litigation is champertous if the lender exercises control.