Bankruptcy

Individual Liability For Unpaid Federal Withholding Taxes

Posted on January 16, 2010
It is not uncommon for financially distressed businesses to get behind on payroll taxes, especially when the company does not have a payroll service that handles the payment of all taxes and automatically deducts the full amount from the company's bank accounts...

Another Atlanta Developer In Bankruptcy: Miles Properties And Related Entities File Chapter 11 Petitions In Northern District Of Georgia

Posted on January 10, 2010
Miles Properties, Inc., and several related entities, have filed Chapter 11 petitions in the Northern District of Georgia on January 8, 2010. The filing entities are listed below.  Miles is one of the largest developers and owners of apartment and condominium communities in the country, with its headquarters in Atlanta...

M.D. Ga. - Collateral Estoppel For Probate Court Judgment; Defalcation While Acting In Fiduciary Capacity

Posted on January 02, 2010
 RLI Ins. Co. v. Waters (In re Waters), Adv. No. 09-5014, 2009 Bankr. LEXIS 3865 (Bankr. M.D. Ga. Dec. 7, 2009) (J. Hershner). Debtor was the guardian of his minor son, who was injured in a car accident and received $15,522.74 in settlement proceeds...

Georgia Personal Bankruptcies Rise In 2009

Posted on January 02, 2010
Carrie Teegardin of the Atlanta Journal published a story yesterday about the rising rate of personal bankruptcy cases in Georgia for 2009.  Click here for the story.  It certainly is not a surprise that the numbers are rising, given the significant drop-off after the 2005 amendments and the general state of the economy...

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Three More Georgia Banks Fail

Posted on December 05, 2009
Yesterday, Friday December 4, 2009, three more Georgia Banks failed.  This makes a total of 24 failed banks in Georgia for 2009, and 29 failures since August 2008.  The latest victims are: 1.  Buckhead Community Bank was seized and sold by the FDIC to State Bank & Trust...

Chapter 11 Cases Filed In Northern District Of Georgia In November-December 2009

Posted on December 04, 2009
Several  Chapter 11 cases were filed in the Northern District of Georgia in November and December 2009, through foreclosure day in December.  Rachel Tobin Ramos has an article in the Atlanta Journal Constitution about the Chapter 11 filing of local retail chain Limetree...

New Bankruptcy Rules And Local Rules For The Northern District Of Georgia

Posted on November 26, 2009
On December 1, 2009, several amendments to the Federal Rules of Bankruptcy Procedure will take effect.  You can see the Public Notice by clicking here. Please note that several time periods are shortened under the new Rules.  A summary of the Rules is available here, and new forms are available here...

Southern District Opinion; Relief From Stay; Single Asset Case

Posted on November 07, 2009
Suntrust Bank v. Global One, L.L.C. (In re Global One, L.L.C), 411 B.R. 524 (Bankr. S.D. Ga. July 21, 2009).  SunTrust sought relief from stay on the grounds that the value of the real property ($460,000) was far less than the amount of the secured claim ($548,159)...

Middle District Opinion: Relief From Stay To Litigate Employment Claims In District Court

Posted on November 07, 2009
In re Coachworks Holdings, Inc., Ch. 11 Case No. 09-51096, 2009 Bankr. LEXIS 3369 (Bankr. M.D. Ga. Oct. 16, 2009).  Movant filed a motion for relief to pursue employment claims against the debtor and non-debtor parties.  Debtor opposed, contending the claims should be resolved in Bankruptcy Court based primarily on the expense of litigating in District Court...

Chapter 11 Cases Files In October and November 2009

Posted on November 04, 2009
Foreclosure Day in Georgia was yesterday, November 4, 2009.  Below are the Chapter 11 cases filed over the last few weeks.   Case No. Related Case Info Ch Party Info Dates Other Info 09-86091-crm 11 Atlanta Rug Gallery, Inc...

Recent Opinions From The Middle District Of Georgia

Posted on October 09, 2009
 In re Baugh, Ch. 7 Case No. 07-30838 (Bankr. M.D. Ga. September 17, 2009)(J. Walker). A petition preparer was sanction pursuant to section 110 of the Code.  The Court found that the preparer violated the Code by failing to provide her address, her partial social security number, and by providing legal advice to the debtor concerning reaffirmation agreements...

When Are 529 Educational Funds Property Of The Bankruptcy Estate?

Posted on September 24, 2009
Section 529 Plans are tax advantaged savings plans intended to encourage saving for future college costs. There are two types of qualified tuition programs: a prepaid tuition plan or a college savings plan They are authorized under Section 529 of the Internal Revenue Code (26 U...

Triad Senior Living Facilities File Chapter 11 Petitions in Northern District Of Georgia

Posted on September 23, 2009
Triad Senior Living communities filed several related Chapter 11 cases in the Newnan Division of the Northern District of Georgia.  Case No. Related Case Info Ch Party Info Judge Trustee Dates 09-13383-whd 11 Triad at LaGrange I, LLC Drake   Filed:  09/22/2009 Entered:  09/22/2009 09-13384-whd 11 Triad at Jeffersonville I, LLC Drake   Filed:  09/22/2009 Entered:  09/22/2009 09-13385-whd 11 Triad at Lumber City I, LLC Drake   Filed:  09/22/2009 Entered:  09/22/2009 09-13386-whd 11 Triad at Powder Springs I, LLC Drake   Filed:  09/22/2009 Entered:  09/22/2009 09-13387-whd 11 Triad at Thomasville I, LLC Drake   Filed:  09/22/2009 Entered:  09/22/2009  

AJC Article Discusses Spa Sydell Chapter 11 Filing

Posted on September 05, 2009
Spa Sydell, the well-known day spa in Atlanta, filed a Chapter 11 bankruptcy petition in Atlanta on September 3, 2009.  In re Sydell, Inc., Ch. 11 Case No. 09-83407-crm (click here to download 117 page petition).  Not only is Spa Sydell in business at all locations, it has plans to open a seventh location in Roswell...

Two More Georgia Banks Fail: First Coweta Bank, EBank Closed By Regulators

Posted on August 22, 2009
Two more Georgia banks were shut down yesterday, making them the 17th and 18th Georgia bank failures in 2009.  Ebank, the Vinings-based thrift founded in 1998 as Commerce Bank, was closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation (FDIC) was named Receiver...

I Have Been Threatened With A Lawsuit If I Don't Return Money A Customer Paid Before They Filed For Bankruptcy! Do I Have To Give It Back?

Posted on August 22, 2009
If you have have had the bad luck to deal with customers or clients who have filed a bankruptcy case, chances are good that you have or will receive a demand letter to return money paid to you by the customer or client in the months leading up to the filing of the bankruptcy case...

Fiduciary Duties Of Officers And Directors Of Failing Companies During "Zone Of Insolvency"

Posted on August 08, 2009
As more and more companies seek bankruptcy protection, we may see more bankruptcy cases involving officer and director liability during the "zone of insolvency" preceding the filing.   Since most states look to Delaware for guidance on matters of corporate law, it is important to keep up with the significant decisions of Delaware courts...

Protecting IP Rights From A Licensor's Bankruptcy

Posted on August 08, 2009
I was recently asked to look into a Chapter 11 case by a company that licensed software to the debtor company.  The client had a significant pre-petition debt, and was not being timely paid in the Chapter 11 even though the debtor (a very large technology company) continued to use the software...

Atlanta Journal Articles Discuss Waffle House Franchise Bankruptcy Case

Posted on August 06, 2009
Joe Guy Collier of the Atlanta Journal Constitution wrote an article for today's edition about the competing bids for the assets of a Waffle House franchisee that filed a Chapter 11 petition in Nashville.  The debtor company, Southeast Waffles, LLC, has proposed a plan whereby the assets would be purchased by a group including professional golfer Phil Mickleson...

Bailey Banks & Biddle Parent Files Chapter 11

Posted on August 06, 2009
Finlay Enterprises Inc., the parent company of jewelry retailer Bailey Banks & Biddle, filed their petition in New York yesterday. There are three Bailey Banks & Biddle stores in Atlanta: Lenox Square Mall, Perimeter Mall and Mall of Georgia...

Chapter 11 Cases Filed In Northern District In July - August 2009

Posted on August 05, 2009
It was not a particularly heavy month of Chapter 11 filings, through foreclosure day this week, but there were still several new Chapter 11 filings in the last month.       Case No...

Security Bank Corp., Based in Macon, Georgia, Is Shut Down By Regulators

Posted on July 25, 2009
Security Bank Corp. was shut down yesterday by the Georgia Department of Banking and Finance, and the FDIC.  Pinehurst-based State Bank and Trust Co. will assume all of the deposits of Security Bank's six subsidaries and will acquire $2.4 billion of the banks' assets...

Starting To Be Old News In Georgia: FDIC Shuts Down First Piedmont Bank In Winder

Posted on July 18, 2009
First Piedmont Bank, based in Winder, Georgia, became the state's 15th bank failure in the last year.  Its assets were purchased by Athens-based First American Bank and Trust.  A total of four banks nationwide were shuttered on Friday.  A total of 58 federally insured banks nationwide have been shut down in 2009...

CIT Preparing For A Chapter 11 Bankruptcy Filing? What Happens To Its Borrowers?

Posted on July 14, 2009
Lender CIT has been a business lender for 100 years, and is (at least for now) a Fortune 500 company.  It is mainly a lender to small to middle market businesses and according to its website has $60 billion in financing and leasing assets.  Lawyers who handle Chapter 11 cases have undoubtedly crossed paths with CIT many times...

11th Cir: Debtor Cannot File Suit Against Trustee Or Professionals In District Court Without Leave Of Bankruptcy Court

Posted on July 11, 2009
Lawrence v. Goldberg, et al., 08- 11034 (11th Cir. July 10, 2009) (click here for .pdf opinion).  Debtor file suit against the Chapter 7 trustee, professionals employed by the trustee, and creditors in District Court..  The District Court dismissed for lack of subject matter jurisdiction...

Another Developer Files Chapter 11: Lake Burton Development, LLC Files Chapter 11 In Northern District

Posted on July 10, 2009
The downward spiral of real estate appears to have taken another developer into Chapter 11. Lake Burton Development, LLC, owned by Killearn, and the developer of Waterfall Country Club and Waterfall at Lake Burton, filed a Chapter 11 petition in the Northern District of Georgia on July 10, 2009...

Ritz Camera/Wolf Camera Give Up On Reorganization And Will Close And Sell All Stores

Posted on July 09, 2009
The Atlanta Business Chronicle is reporting that Ritz Camera, which operates as Wolf Camera in many locations (incl. Georgia), is giving up its reorganization efforts and will try to sell all remaining locations.  Click here for the article by Barton Eckert...

Chapter 11 Cases Filed In Northern District In June-July 2009

Posted on July 08, 2009
    Case No. Ch Party Info Dates Other Info 09-74867-whd 11 Thomas Key Grading & Trucking Inc Filed:  06/09/2009 Entered:  06/09/2009 Office: Atlanta Assets: No 09-74936-whd 11 Utopia Trading, Inc...

11th Circuit - Bank To Bank Credit Card Balance Transfers Are Avoidable Preferential Transfers

Posted on June 28, 2009
Bank of America, NA v. Mukamai (In re Egidi), No. 08-15958 (June 18, 2009) (click here for .pdf of opinion).  The facts were not in dispute. Within 90 days of filing her bankruptcy petition, debtor caused one credit card company to directly transfer a total of $16,065 to Bank of America ("BOA") as part of a balance transfer...

Two More Georgia Banks Seized And Closed On Failure Friday

Posted on June 26, 2009
Friday afternoon in Georgia often means a bank gets the final visit from the FDIC. Today, two were shut down. Community Bank of West Georgia, based in Villa Rica, was seized.  No buyer was found, so the bank will be closed.  Click here for the article in the Atlanta Business Chronicle...

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