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

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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

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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

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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

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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

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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

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