Sometimes You Want To Be Ordinary: Restructuring Payment of Past Due Accounts to Avoid Bankruptcy Preference Liability

Because bankruptcy filings were up over the past several years, debtors and trustees in those cases are now at the point of filing preference lawsuits in bankruptcy courts across the country.  Relying on Section 547(b) of the Bankruptcy Code, plaint ...[Read more]

Published: 9/25/2015 | 0  Comments | 0  Links to this post

When a Driver’s License Is More Than a Bad Picture: Is Your UCC Financing Statement Still Effective?

​​UCC Financing Statements Must Contain the Debtor’s Correct Name “[A] financing statement is sufficient only if it [among other things] . . . provides the name of the debtor. “ N.C. Gen. Stat. § 25-9-502(a)(1) (emphasis added). Prior to July 1, 20 ...[Read more]

Published: 8/12/2015 | 0  Comments | 0  Links to this post

Show Me The Money! Post-Judgment Collections in North Carolina

​Executing on civil judgments in North Carolina became more difficult a few years ago when the Administrative Office of the Courts advised all district and superior court judges, as well as all clerks of court, that ex parte orders in aid of executi ...[Read more]

Published: 4/29/2015 | 0  Comments | 0  Links to this post

Court of Appeals Changes Course on Fair Market Value Defense in Deficiency Actions

​In BB&T v. Smith et al. (COA14-554) issued on February 17, the Court of Appeals held that the so-called “fair market value defense” in lender deficiency actions applies not only to owner-obligors, but also to guarantors.  This opinion represent ...[Read more]

Published: 2/18/2015 | 0  Comments | 0  Links to this post

Lessons from Recent NC Court of Appeals Opinions

​The release of opinions by the NC Court of Appeals on February 3 included several cases involving lender foreclosure or collection efforts.   The holdings are not monumental, but there is a common thread of useful illustrations of relevant rules or ...[Read more]

Published: 2/11/2015 | 0  Comments | 0  Links to this post

Reciprocal Attorneys’ Fees Provisions Enforceable in N.C. Business Contracts

​Under the so-called "American rule", the general rule in the United States is that each side pays its own way in civil cases. This is in contrast to other countries where the losing party is required to pay the prevailing party’s attorney ...[Read more]

Published: 2/11/2015 | 0  Comments | 0  Links to this post

Safe Harbor Protects Assignees from Liability under the ECOA

​In a prior post, we considered the application of the Equal Credit Opportunity Act (ECOA) as a defense to guarantor liability. A related issue is whether claims under the ECOA exist against a successor or “assignee” creditor uninvolved in the origi ...[Read more]

Published: 10/21/2014 | 0  Comments | 0  Links to this post

Eighth Circuit Finds Guarantors Not Afforded Protections under the ECOA

​The application of the Equal Credit Opportunity Act (ECOA) to spousal guaranties is a developing area of law, resulting in a number of recent appellate opinions. One opinion from the Eighth Circuit Court of Appeals, Hawkins v. Community Bank of Ray ...[Read more]

Published: 10/7/2014 | 0  Comments | 0  Links to this post