North Carolina Eastern District

Marriage on the eve of bankruptcy was a badge of fraud.

North Carolina’s Judge McAfee distinguishes between sales of personal assets and sales of investment assets in deciding whether proceeds are derived from ‘income’ and must be included in the current monthly income analysis.

The homestead exemption was valid because the debtor’s dependents lived in the home abroad as their principal residence.

On a question where the courts are split, Bankruptcy Judge Pamela McAfee sides with the majority and holds that a chapter 13 debtor can’t sell co-owned property.

Alleging that a debtor realized an ‘impossibly high’ rate of return in a Ponzi scheme isn’t enough to state a claim of nondischargeability for ‘actual fraud.’

After Taggart v. Lorenzen, plans, orders and injunctions must be highly specific to hold an offending creditor in contempt.

Bankruptcy Judge Warren makes sure the sanctions won’t be dischargeable if the offending creditor files his own bankruptcy.

Can student loans be wiped out as fraudulent transfers that aren’t dischargeable under Section 523(a)(8)?

Factors in permitting separate classification of debts include moral obligation and tangible benefit.

Bankruptcy judge says a chapter 13 debtor receives ‘several benefits’ from paying 8% in commissions on mortgage payments through the trustee.