Monthly Archives: November 2013

LLC Member: Is a Pre-Bankruptcy Expulsion Vulnerable to Attack?

Garcia v. Garcia (In re Garcia), 494 B.R. 799 (Bankr. E.D. N.Y. 2013) – Prior to bankruptcy, a chapter 11 debtor who had been a member of two limited liability companies was expelled by the other members on the basis that he … Continue reading

Posted in Uncategorized | Tagged , , , | Leave a comment

Treatment Under Plan of Reorganization: Mortgage Discharge May Take More Than You Might Expect

Acceptance Loan Co. v. S. White Transp., Inc. (In re S. White Transp., Inc.), 725 F.3d 494 (5th Cir. 2013) – The 5th Circuit upheld the district court decision with the result that notwithstanding the debtor’s attempt to discharge a mortgage … Continue reading

Posted in Financing, Real Estate | Tagged , | Leave a comment

UCC Financing Statements: Words to the Wise — Do Not Allow an Active UCC to Lapse

Highland Constr. Mgmt. Services, LP v Wells Fargo, N.A. (In re Highland Constr. Mgmt. Services LP), 497 B.R. 829 (Bankr. E.D. Va. 2013) – This opinion opens with a riddle:  “When is a financing statement that is no longer effective, still … Continue reading

Posted in Financing | Tagged , , , | Leave a comment

Construction Claims: Trust Funds Can Go Poof (Round 2)

Lain v. Universal Drywall LLC (In re Erickson Retirement Communities, LLC), 497 B.R. 504 (Bankr. N.D. Tex. 2013) – A chapter 11 liquidating trustee sought to recover a prepetition payment made by the debtor to a subcontractor on the basis that it … Continue reading

Posted in Real Estate | Tagged , | Leave a comment

Fraudulent Transfers: More Or Less Insolvent

Richardson v. Checker Acquisition Corp. (In re Checker Motors Corp.), 495 B.R. 355 (Bankr. W.D. Mich. 2013) – A chapter 11 liquidating trustee brought several proceedings to recover fraudulent transfers under both the Bankruptcy Code and a state version of the Uniform … Continue reading

Posted in Uncategorized | Tagged , , | Leave a comment

Title Company Escrow Check: Now You See It, Now You Don’t

White Family Cos., Inc. v. Slone (In re Dayton Title Agency, Inc.), 724 F.3d 675 (6th Cir. 2013) – The debtor, a title agency, facilitated a series of loans by having both the loans and the loan repayments pass through its … Continue reading

Posted in Real Estate | Tagged , , | Leave a comment

Letter of Credit: Not A Financial Accommodation, Executory Contract Or Even A Contract?

Rafool v. Evans, 497 B.R. 312 (C.D. Ill. 2013) – A chapter 7 trustee brought a legal malpractice case against a debtor’s prepetition attorneys for failing to advise the debtor to draw on letters of credit prior to filing bankruptcy.  The case turned … Continue reading

Posted in Financing | Tagged | Leave a comment