US Bankruptcy Court MDNC Docket Feed

Patricia Bell Muhammad v. NCDMV - Automatic Stay Sanctions Denied

The United States Bankruptcy Court for the Middle District of North Carolina denied Patricia Bell Muhammad's motion for sanctions under 11 U.S.C. § 362(k), ruling that the North Carolina Division of Motor Vehicles (NCDMV) did not violate the automatic stay by revoking her vehicle registration. The court found that NCDMV's action fell under the § 362(b)(4) exception to the automatic stay for governmental units enforcing police or regulatory power, not for debt collection. The debtor had alleged that NCDMV revoked her registration post-petition to collect a prepetition civil penalty assessed for a lapsed vehicle insurance policy.

Schamens v. Cournoyer - Default Judgment Entered, Discharge Denied

The U.S. Bankruptcy Court for the Middle District of North Carolina granted the Bankruptcy Administrator's motion to strike defendant David Wayne Schamens' answer and entered default judgment denying his Chapter 7 discharge under 11 U.S.C. § 727(a)(2), (3), (4) and (6). The court found the pro se defendant persistently and willfully failed to make required initial disclosures, respond to discovery requests, or comply with court orders over multiple extensions. Schamens now faces the consequence of having his bankruptcy discharge denied entirely.

Prairie E&L Management v. Sandra Yeh - Order Granting in Part and Denying in Part Motion to Dismiss

The United States Bankruptcy Court for the Middle District of North Carolina partially granted and partially denied a Rule 12(b)(6) motion to dismiss filed by defendant Sandra Yeh, M.D. in adversary proceeding Adv. Pro. No. 25-02016. The Court dismissed the Trustee's second cause of action because insurance policyholders do not hold allowable claims against the Debtor and therefore cannot serve as triggering creditors under 11 U.S.C. § 544(b)(1). The remaining two causes of action, challenging the January 2018 $12.5 million payment and obligation to pay the remaining $25 million purchase price balance as voidable fraudulent transfers under N.C. Gen. Stat. § 39-23.4, will proceed. This ruling allows the Chapter 7 Trustee for Prairie E&L Management, LLC to continue pursuing fraudulent conveyance claims while establishing that triggering creditor standing is a threshold requirement.