This case came before the Court on the Debtor’s motion to reconsider the entry of various orders pursuant to FRBP 9024. The Court discussed the requisite showings a movant must demonstrate to support a request for relief. Particularly, the Court explained that a movant must show it has a meritorious defense when seeking relief from default. To carry this burden over an objection, the movant cannot merely offer putative defenses or general denials; the movant must show evidence that he could substantiate the defenses. The Debtor in this case did not put on any evidence. Accordingly, the Court denied his motion.
Opinions
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Judge John T. Laney, III
In these cases, the Chapter 7 Trustee sought to avoid pre-petition payments made to insiders pursuant to 28 U.S.C. § 3304(a)(2). After an extensive trial, the Court ruled in favor of the Defendants. Although the Court found the Debtor was insolvent at the time it made the payments, the Court did not find the Trustee met his burden to show the insiders had reasonable cause to believe the Debtor was insolvent. The opinion discusses the legal standards and the evidence presented by the parties.
In these cases, the Chapter 7 Trustee sought to avoid pre-petition payments made to insiders pursuant to 28 U.S.C. § 3304(a)(2). After an extensive trial, the Court ruled in favor of the Defendants. Although the Court found the Debtor was insolvent at the time it made the payments, the Court did not find the Trustee met his burden to show the insiders had reasonable cause to believe the Debtor was insolvent. The opinion discusses the legal standards and the evidence presented by the parties.
The issue before the Court was whether a creditor violated the automatic stay by applying non-bankruptcy estate funds, which the Debtor gave voluntarily to the creditor after filing, to a pre-petition dischargeable claim. The Debtor further argued that, even if the creditors application of those funds to its claim was not a violation of the automatic stay, refusing to remit the funds to the Debtor after his request was a violation. The Court rejected these arguments. It held nothing in 11 U.S.C. § 362 prevents a creditor from retaining and applying a voluntary post-petition payment from non-bankruptcy estate funds. Further, the Court rejected the Debtor’s argument that, in accepting the payment, the creditor was required to give the disclosures enumerated in 11 U.S.C. § 524(k).In re
The Movant sought relief from the automatic stay. The issue before the Court was whether the agreement between the Debtor and the Movant was a lease or a security interest. The Movant argued Tennessee law governed the agreement by the operation of a choice-of-law provision in the contract. Tennessee law explicitly provides that a rental-purchase agreement is not a security interest. The Court agreed, finding the choice-of-law provision was enforceable.
The parties sought summary judgment on an action for declaratory judgment that concerned the extension of an open-end clause in a real estate financing agreement. The issue before the Court was whether a non-borrowing grantor’s security interest also secured the borrower’s later incurred debt, even without the non-borrowing grantor’s consent. The Court found the documents memorializing the security agreement did not require consent to extend the security interest. Further, the Court found such a provision did not contravene Georgia law. Accordingly, the Court granted summary judgment for the Plaintiff.
The Court denied the Debtor’s motion to convert his Chapter 7 case to a Chapter 11 pursuant to 11 U.S.C. § 706(b). The issues before the Court were whether a debtor’s right to convert to a Chapter 11 is absolute and, if not, under what circumstances a court should deny a debtor’s request for conversion. The Court held a debtor’s right to convert is not absolute. Rather, where the debtor’s conduct would constitute grounds for immediate reconversion or dismissal, a court may deny conversion. The Court determined the totality of the circumstances surrounding this case clearly indicated conversion would immediately create grounds to dismiss or reconvert the case. In making this determination, the court considered the nonexhaustive factors set forth in 11 U.S.C. § 1112(b)(4) and the debtor’s bad-faith conduct.
The Court sustained the Debtor’s Objection to Wilmington Trust, N.A.’s claim and disallowed the claim as untimely. The issues before the Court were whether a consent order that does not address the timeliness of a late-filed proof of claim can deem such an untimely filed claim as an allowed, general non-priority unsecured claim and furthermore, whether the court has the authority to enlarge the amount of time for filing the Creditor’s proof of claim. The Court determined that the consent order did not address the timeliness for filing a proof of claim, and the Court did not have the authority to enlarge the time to file a proof of claim or allow an untimely filed proof of claim because Rule 3002(c) did not apply to the circumstances.
The Court grants partial summary judgment for the plaintiff's Motion for Full or Partial Judgment.
The Court grants partial summary judgment for the plaintiff's Motion for Full or Partial Judgment.