See, Kreisler v. Goldberg, 2007 WL 572125, at 2-3 (4th Cir. 2007)(Section 362(a)(1) did not protect wholly owned subsidiary of Chapter 11 debtor.); Credit Alliance Corp. v. Williams, 851 F.2d 119,121 (4th Cir. 1988)(" Nothing in §362 suggests that Congress intended that provision to strip from the creditors of a bankrupt debtor the protection they sought and received when they required a third party to guaranty the debt."); In re Jones, 21-01034-B, 2021 WL 2483104 (Bankr. D.S.C. 5/24/21)(HB)(Automatic stay in Debtor's individual Chapter 13 case did not apply to the real estate owned by the Corporation.); CresCom Bank v. Terry (In re CCT Reserve, LLC), C.A. No. 2:12cv-00063-PMD, 2013 WL 868522 (D.S.C. 3/7/13)("CCT's filing for bankruptcy automatically stayed CresCom's action against CCT, but not against Terry."). Hazel v. Blitz U.S.A. (In re Blitz U.S.A.), S.E.2d, Slip op. 28016 (S.C. 3/17/21)(Defective gas can manufactured by Debtor (Blitz) and sold by retailer (Fred's Stores) in South Carolina caused injury to a Minor. Minor's legal guardian and the Minor's mother filed two suits against Blitz alleging products liability theories of strict liability and breach of warranty. Legal guardian and the mother also filed suits against Fred's solely for its negligence in selling a gas can Fred's knew, or should have known, might be dangerous. Due to numerous other similar suits in other states, Blitz filed Chapter 11 in Delaware. Blitz obtained confirmation of a Plan which contained injunction protecting a non-debtor retailer, Wal-Mart, which funded a Blitz Personal Injury Trust and certain insurance companies which also funded the Trust. Fred's did not contribute to the Trust. The Court held the plan third party injunction did not protect Fred's stating "We find the bankruptcy court did not intend to define Protected Party so broadly as to prohibit claims like Hazel's claim against a seller like Fred's who did not participate in the bankruptcy proceedings and who made no contribution to the bankruptcy estate." The Court also distinguished A.H. Robins Co. V. Picinnin, 788 F.2d 994 (4th Cir. 1986) which permitted a third party to be protected if that party was entitled to absolute indemnity by the debtor holding that the suits sought recovery from Fred's for its own negligence and not the actions of Blitz, so Blitz had no obligation to indemnify Fred's for its own negligence and the automatic stay did not protect Fred's.); Selective Ins. Co. v. Hester Drywall, LLC (In re Hester), C.A. No. 4:18-cv-00431-RBH, 2019 WL 367899(D.S.C. 1/30/19)(RBH)(In order to obtain the required surety bonds for construction contracts, Debtors in their individual capacity, signed indemnification agreements for LLCs in which the Debtors had interests. The indemnification agreements created joint and several liability for the Debtors and the LLCs upon default. After one LLC was unable to perform its subcontracting duties, the Surety (Selective) issued payment and performance bo
We do not represent debtors, but we offer a wide range of services to non-debtor parties. We file claims and motions for relief from the stay for creditors. We also file objections to confirmation in Chapter 11 and Chapter 13 cases. We also represent defendants in preferential transfer litigation, fraudulent transfer litigation, and all other forms of consumer and business bankruptcy litigation.
Foreclosure
IF YOU ARE INVOLVED IN A FORECLOSURE DO ALL YOU CAN TO FIRST GET THE JUDGMENT OF FORECLOSURE AND THEN HAVE THE SALE COMPLETED BY THE TIME THE DEBTOR FILES BANKRUPTCY
Tax Law
SCLBR 9011-2( c) requires corporations, partnerships and other entities to be represented by a lawyer. In re Coats, 19-04310-W, 2020 WL 257315 (Bankr. D.S.C. 1/8/20)(JW)(Representative of the Creditor/Corporation was not an attorney, therefore he could not represent the Creditor.); Wazney v. Chase (In re 2040 Hideaway Drive), 17-900009-D (Bankr. D.S.C. 10/4/17)(DD) appeal dismissed C.A. No. 3:17-cv-3216-HMH, 2018 WL 1515287 (D.S.C. 3/27/18) aff'd 18-1476 (4th cir. 8/23/18)(Per Curiam)(Inmate filed what purported to be a petition for relief as Attorney for the corporate Debtor. The Court Bankruptcy Court held Mr. Wazney was not an attorney and could not file a pleading on behalf of the corporation.); In re BTR Properties, LLC, 2012 WL 1565239 (Bankr. D.S.C. 5/2/12)(HB)(Chapter 11 case on behalf of Single Member LLC was filed by its sole member without the assistance of an Attorney. The Clerk's Office sent a letter to the Member stating under SCLBR 9011-2, the case would be dismissed an attorney filed a Notice of Appearance and Representation. The Member, who had filed his own Chapter 11 case pro se, objected arguing under state and federal tax law, an LLC is an unincorporated business so he could represent the unincorporated business. The Court overruled the Objection and Ordered the Debtor to obtain the assistance of an attorney stating: "While individuals in bankruptcy or other court proceedings may represent themselves, the same prerogative is not afforded to corporations and other certain business entities. It is well-established law that those entities must be represented by a licensed attorney because they are fictional legal persons; therefore, they cannot appear for themselves personally.... Consistent with the long-established rule..., the South Carolina Local Bankruptcy Rules require that ‘[a]ll partnerships, corporations and other business entities must be represented by an attorney duly admitted to practice... except with respect to the filing of proofs of claim or interests and reaffirmation agreements....' This rule is also recognized under South Carolina state law.... An LLC, such as BTR, is a type of business entity that is ‘a legal entity distinct from its members....' Therefore, like other business entities, BTR can appear in court only through a licensed attorney."); In re Wile, 09-04657-W (Bankr. D.S.C. 9/9/10)(JW)(Without assistance of counsel, Chase Home Finance, LLC directly filed on the general case docket via CM/ECF Notices of Payment Changes using the "correspondence" category. After previously ordering Chase to discontinue such filings, the Court entered a Rule to Show Cause. The Court held such filings were improper pro se filings on behalf of a corporation prohibited under SCLBR 9011-2.).