School’s Back in Session: Special Asset Summer School Returns
May 28, 2026
Ward and Smith is bringing back its popular Special Asset Summer School, a free three-part webinar series running June through August 2026. Led by…
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Don’t Let Your Lawyer’s AI Problem Become Yours
April 21, 2026
On March 10, 2026, a federal prosecutor with thirty years of experience stood before a magistrate judge in the United States District Court for…
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What the First Brands Implosion Teaches Lenders about Cash Collateral in Bankruptcy
April 7, 2026
You know the phrase: Cash is king. Never is it truer than in the early days of Chapter 11 bankruptcy. If you make asset-based…
article
Bonnie and Claude: The Court Ruling That Could Expose Fraudster’s AI Conversations
March 11, 2026
A New York federal court just issued the first published ruling to tackle head-on whether conversations with a public AI chatbot are protected by…
Firm News
Attorneys Paul Fanning and Lance Martin Named to Top 100: 2026 North Carolina Super Lawyers List
March 9, 2026
Ward and Smith is proud to announce that attorneys Paul A. Fanning and Lance P. Martin have been named to the Top 100: 2026…
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Does One Defendant’s Bankruptcy Derail My Entire Lawsuit?
February 24, 2026
Sometimes a business deal doesn’t work out, and the parties decide to see each other in court. What happens if during the lawsuit one…
Firm News
25 Ward and Smith Attorneys Recognized as 2026 North Carolina Super Lawyers and Rising Stars
February 18, 2026
Ward and Smith is pleased to announce that 25 of its attorneys were recognized in the 2026 North Carolina Super Lawyers and Rising Stars…
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Frequently Asked Questions About the Notice of Contract Mechanism for North Carolina Contractors and Subcontractors
February 10, 2026
Ed. Note: This was originally published in 2020 and has been revised and updated. This is part two of a two-part series. See part…
Firm News
Lily Faulconer Named to ECU’s 2026 40 Under Forty Leadership Awards
January 29, 2026
Attorney Lily Faulconer has been named to East Carolina University’s 2026 40 Under Forty Leadership Awards, a distinction that recognizes alumni under the age of…
Firm News
Lance Martin Inducted into the Business North Carolina Hall of Fame for Bankruptcy
January 13, 2026
Ward and Smith bankruptcy law attorney Lance Martin has been honored with induction into Business North Carolina’s 2026 Hall of Fame for Bankruptcy. The…
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The Fourth Circuit’s 2025 Bankruptcy Decisions: Section 524(g) Trusts, Jurisdiction over Solvent Debtors, and Good Faith
January 13, 2026
2025 brought remarkable clarity—and continuing controversy—to mass tort bankruptcies in the Fourth Circuit. The Court decided two landmark opinions on asbestos channeling injunctions and…
Firm News
38 Ward and Smith Attorneys Recognized as 2026 Business North Carolina Legal Elites
January 9, 2026
Ward and Smith is pleased to announce that 38 of the firm’s attorneys have been recognized in the 2026 Legal Elite by Business North…
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Ward and Smith’s Top 10 Most Popular Articles of 2025
December 19, 2025
As we reflect on 2025, it’s time to highlight the articles that have most resonated with readers throughout the year. Ward and Smith attorneys…
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Portrait of a Bad Faith Bankruptcy
November 21, 2025
You have to work really hard to file a Chapter 11 case that gets dismissed from the jump. Bankruptcy courts tend to bend…
Firm News
Ward and Smith Ranked by Best Law Firms® in 2026
November 6, 2025
Ward and Smith, P.A., has been recognized in the 2026 Edition of Best Law Firms®. The firm was ranked by Best Law Firms in 30 practice…
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Friend or Fraudster: How a Contractor Scam Artist Drove a Company Into Bankruptcy
October 31, 2025
Property owners beware: that friendly contractor who becomes “like family” might just set you up for financial ruin. A recent decision from the United…
Firm News
Ward and Smith Welcomes Michael Weaver, Leader of the Columbia Office
October 13, 2025
Ward and Smith, P.A., is pleased to announce the addition of Michael H. Weaver to the firm’s Corporate and Creditors’ Rights practice. Michael joined…
Firm News
Ward and Smith Welcomes Five Attorneys Across Multiple Practice Areas and Locations
October 8, 2025
Ward and Smith, P.A. is pleased to announce the addition of five attorneys who bring a wide range of experience to the firm’s litigation,…
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Depositor’s Remorse: How a Million-Dollar Deposit Became Bankruptcy Estate Property
October 3, 2025
When a company files bankruptcy, you can generally assume that funds in its bank accounts will be property of the bankruptcy estate. Exceptions are…
Firm News
68 Ward and Smith Attorneys Honored by Best Lawyers® for 2026
August 21, 2025
Ward and Smith is proud to share that 68 attorneys have been recognized by Best Lawyers in America®. Of those honored, 55 were named to…
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The Economic Loss Doctrine: A Valuable Shield for Lenders
June 6, 2025
Lenders have likely encountered situations where borrowers push back against collection efforts. Sometimes, they may even accuse you of causing them harm through…
Firm News
NCBA to Rebroadcast “Basics of Bankruptcy” CLE Featuring Attorneys Jameson Doub and Lily Faulconer
May 8, 2025
Attorneys looking to build or refresh their knowledge of bankruptcy law will have another opportunity to do so when the North Carolina Bar Association…
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Risky Business: Distressed Companies and Payments in the Shadow of Bankruptcy
February 18, 2025
Doing business with a customer in the shadow of bankruptcy is risky. A hallmark of bankruptcy law is equal treatment of similarly-situated creditors. The…
Firm News
25 Ward and Smith Attorneys Shine in 2025 Super Lawyers and Rising Stars Lists
February 18, 2025
Ward and Smith is thrilled to announce that 25 of its attorneys have earned spots on the prestigious North Carolina Super Lawyers and North…
Firm News
Ward and Smith Attorneys Honored as 2025 Business North Carolina Legal Elites
January 6, 2025
Ward and Smith is proud to announce that 38 of its attorneys have been named to Business North Carolina’s 2025 Legal Elite, a testament to…
Firm News
Ward and Smith Ranked by Best Law Firms® in 2025
November 11, 2024
Ward and Smith has been honored in the 2025 edition of Best Law Firms®. The firm has made its mark in the legal field by being ranked…
Firm News
67 Ward and Smith Attorneys Recognized by Best Lawyers® in America for 2025
August 15, 2024
Ward and Smith is pleased to announce that 67 attorneys have been recognized by Best Lawyers®. Fifty-four attorneys were chosen for inclusion in…
article
A Primer for Creditors Navigating the Bankruptcy System
June 11, 2024
Bankruptcy filings affect businesses across America. The Bankruptcy Code is complex and difficult to navigate. But when used properly, it can help creditors to…
article
Charging Order Limitations – You Can’t Charge What They Don’t Own
April 23, 2024
In North Carolina, a creditor who obtains a judgment against an individual with an ownership interest in a limited liability company or limited liability…
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Collection Costs of a Non-Discharged Debt Also Are Non-Discharged
April 16, 2024
Bankruptcy offers debtors an opportunity for a “fresh start,” the primary draw for many individuals seeking to unburden themselves of their debt. A…
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Don’t Disrespect the Receivership
April 5, 2024
A recent decision by the North Carolina Business Court highlights the risks of interfering with property that is part of a receivership estate. The…
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740,000 Reasons to Think Twice Before Putting a Company in Bankruptcy
March 12, 2024
A recent decision from a bankruptcy court in Delaware provides a cautionary tale about the risks of involuntary bankruptcy. In the Delaware case, the…
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Bankruptcy Destroyed My Perfect (Landlord-Tenant) Relationship!
February 20, 2024
February brings us Valentine’s Day, and we bring you a tale as old as time. Two people meet, maybe online, maybe at a Chamber…
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A Discharge Lesson Courtesy of the Worst Person in the World
January 17, 2024
Alex Jones, the despicable, chest-thumping, conspiracy-peddling radio host, for years, blabbered on his radio show that the Sandy Hook Elementary School shooting was a…
Firm News
21 Ward and Smith Attorneys Honored by North Carolina Super Lawyers in 2024
January 16, 2024
North Carolina boasts an impressive array of legal talent, and this year, we’re thrilled to announce that 21 of our attorneys have been recognized…
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What the “Biggest Holiday Inn in the World” Can Teach Us About Default Interest in Bankruptcy
January 5, 2024
When a borrower triggers a monetary default under a loan by failing to make required payments, most loan documents allow the lender to accelerate…
Firm News
36 Ward and Smith Attorneys Honored in Business North Carolina’s 2024 Legal Elite
January 4, 2024
Ward and Smith proudly announced that 36 attorneys have been honored in Business North Carolina’s 2024 Legal Elite. Five legal luminaries stand out as shining…
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Top 10 Most Popular Articles of 2023
December 20, 2023
As we approach the New Year, it’s time to reflect on the articles that have most resonated with readers throughout 2023. Ward and Smith…
Firm News
Ward and Smith Ranked in 2024 “Best Law Firms”
November 2, 2023
Ward and Smith has been ranked in the Best Lawyers® “Best Law Firms” list regionally in 27 practice areas. Firms included in the 2024 “Best Law Firms”…
Firm News
Get Ready for the 46th Annual Bankruptcy Institute, Steered by Attorney Lance P. Martin
October 10, 2023
Embark on an enlightening voyage into the captivating domain of insolvency law at the 46th Annual Bankruptcy Institute, hosted by the North Carolina Bar…
Firm News
Ward and Smith Welcomes Five New Attorneys
October 5, 2023
Ward and Smith is delighted to welcome a dynamic cohort of five attorneys. Representing a breadth of capabilities spread throughout multiple offices, these professionals…
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How to Get Your Own “Free” Private Investigator in Bankruptcy
September 27, 2023
Subchapter V of Chapter 11 of the Bankruptcy Code, which turned three earlier this year, created a more streamlined and less expensive Chapter 11…
Firm News
Ward and Smith Litigators Featured in the 2023 Best Lawyers® Litigation Issue
September 14, 2023
Ward and Smith attorneys are gracing the pages of the 2023 Best Lawyers Business Edition: The Litigation Issue. This is a showcase of litigators…
Firm News
52 Ward and Smith Attorneys Recognized by Best Lawyers in America® for 2024
August 17, 2023
Ward and Smith proudly celebrates an incredible achievement—over half of our esteemed attorneys have gained recognition from one of the nation’s most respected legal…
article
Secured Lender Duffs Golf Course Valuation Hearing
July 28, 2023
In Chapter 11, value is king. Secured creditors have rights in proportion to the value of their collateral. When a secured creditor and the…
Firm News
Ward and Smith and Attorneys Flourish in 2023 Chambers USA Rankings
June 5, 2023
Chambers USA, the esteemed benchmark for legal excellence, is honoring Ward and Smith and several attorneys in its 2023 annual guide. The firm earned rankings…
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Fourth Circuit Says “Do the Math” For Attorneys’ Fees Awards
May 5, 2023
In North Carolina, a loan agreement can require a borrower to pay attorneys’ fees upon default to reimburse the lender for collection expenses. The…
article
No Discharge for Bonnie, No Discharge for Clyde.
March 10, 2023
The Bankruptcy Code generally allows a debtor to wipe out all pre-bankruptcy debts and get a fresh start in life. But not all debts…
Firm News
Lance Martin Honored as a Top Author with 2023 JD Supra Readers’ Choice Award
March 6, 2023
JD Supra, the premier source for legal updates, has named creditors’ rights attorney Lance Martin as a top author in its 2023 Readers’ Choice Awards.…
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When Can You Freeze and Seize a Judgment Debtor’s Bank Account?
February 24, 2023
What can you do to collect on a judgment, and when can you do it? And does it matter if you’re going after the…
Firm News
Paul Fanning Recognized as a Top 100 2023 North Carolina Super Lawyer
January 30, 2023
For the second consecutive year, creditors’ rights attorney Paul Fanning has earned a spot on the Super Lawyers Top 100 list. Paul was recognized for…
Firm News
18 Ward and Smith Attorneys Honored in 2023 Edition of Super Lawyers
January 23, 2023
Super Lawyers, a renowned rating agency, is honoring 18 Ward and Smith attorneys for their exemplary legal services in North Carolina. Thirteen distinguished attorneys have been…
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The Case of the Inexcusably Ignorant Refinance Loan
January 13, 2023
A recent decision from the North Carolina Court of Appeals illustrates the wrong way to refinance a loan. In Midfirst Bank v. Brown, a…
Firm News
Register Today for our Navigating Subchapter V Bankruptcy Webinar
January 5, 2023
With the rapidly increasing popularity of Chapter 11’s small business bankruptcy Subchapter V, lenders need to understand how this process works and how it might…
Firm News
Ward and Smith Celebrated in 2023 Edition of Best Law Firms
November 3, 2022
Ward and Smith shines bright in the 2023 edition of “Best Law Firms.” U.S. News & World Report and Best Lawyers® released their annual rankings that recognize…
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Foreclosure Warning: Property Possessed but Not Owned by a Debtor May Be Subject to the Automatic Stay
November 2, 2022
Creditors know that a bankruptcy petition automatically halts efforts to collect pre-petition debts from the debtor outside of bankruptcy. The “automatic stay” provides fundamental…
Firm News
Michael Parrish and Tyler Russell to Speak at the 45th Annual Bankruptcy Institute
October 25, 2022
Attorneys Michael Parrish and Tyler Russell are presenting next month at the 45th Annual Bankruptcy Institute. Michael will appear on a panel about Chapter…
Firm News
Register for August 17 Special Assets Summer School Webinar
July 28, 2022
Get ready for the final class in our Special Assets Summer School webinar series on August 17 at noon. This session will focus on commercial…
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Fireworks, Hot Dogs, and Bankruptcy?
July 26, 2022
As the townsfolk of Lubbock, Texas readied for the annual Fourth on Broadway Independence Day fireworks show and celebration, local car dealer Reagor-Dykes wanted…
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Can actions be inadvertent and intentional simultaneously? For automatic stay violations, the answer is “Yes.”
July 20, 2022
Creditors know that when a debtor files bankruptcy, the “automatic stay” prohibits further collection activity to give a debtor breathing room to reorganize his…
Firm News
Back in Session: Register for Ward and Smith’s Special Assets Summer School Webinar Part 2
July 7, 2022
The bell will soon ring for the second class in our Special Assets Summer School Webinar series. Join teachers, creditors’ rights attorney Norman Leonard…
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Corporate Bad Behavior Is Not Dischargeable Under Subchapter V
July 1, 2022
If a business engages in bad behavior like intentional interference with contract and tortious interference with business relations, then it may not use Subchapter…
Firm News
Lance Martin Speaks at National Association of Bankruptcy Trustees Conference
June 16, 2022
Creditors’ rights attorney Lance Martin recently attended the National Association of Bankruptcy Trustees Conference in Vancouver, British Columbia, where he spoke on issues with…
Firm News
Ward and Smith and Attorneys Shine in the 2022 Edition of Chambers USA
June 2, 2022
Chambers USA, a leading guide to legal rankings, recognizes Ward and Smith and several of the firm’s attorneys as among the top in North…
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“My Lawyer Made Me Do It” is Not an Absolute Defense to Bankruptcy Court Sanctions
May 31, 2022
Last year, we offered a lesson and a moral from a North Carolina district court decision reversing a $115,000 sanctions order by a North…
Firm News
Lance Martin to Speak at the NABT 40th Annual Conference
May 24, 2022
Creditors’ rights attorney Lance Martin will be a featured speaker at the National Association of Bankruptcy Trustees (NABT) 40th Annual Conference in Vancouver, BC. Lance’s…
Firm News
Norman Leonard to Speak at the 2022 WDNC Bankruptcy Seminar
May 19, 2022
Creditors’ rights attorney Norman Leonard will be part of a panel discussion at the 2022 WDNC Bankruptcy Seminar on Friday, May 20. He will…
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Not So Fast: Limits of “Settlement Negotiation” Protections
May 6, 2022
Understanding How and Why “Settlement Negotiations” May Be Used Against You To promote honest and open discussions in resolving disputes, courts have adopted rules…
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Even Indirect Income from Cannabis Can Get You Banned From Bankruptcy
May 4, 2022
Despite widespread trends in state-level legalization and decriminalization of high-THC cannabis and growing acceptance of cannabis among Americans, cannabis and cannabis products remain illegal…
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How a Setoff Right Led to a Creditor Fight
April 8, 2022
A recent decision from the North Carolina Court of Appeals teaches a valuable lesson about how a creditor with the upper hand against another…
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More Bad News for Non-Debtors Seeking Releases in Chapter 11
February 9, 2022
In January, we wrote about the Purdue Pharma mega-bankruptcy. A United States District Court in New York vacated Purdue Pharma’s confirmed Chapter 11 plan,…
Firm News
Paul Fanning Named to 2022 “Top 100: NC Super Lawyers” List
January 31, 2022
Super Lawyers has recognized creditors’ rights attorney Paul Fanning as a “Top 100: NC Super Lawyer” for 2022. Super Lawyers, a well-established attorney rating…
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Who Gets Released in Chapter 11?
January 7, 2022
In Chapter 11, a business or individual seeks to confirm a plan of reorganization that – upon compliance — will release it from liability…
Firm News
Ward and Smith Attorneys Named to 2022 Business North Carolina Legal Elite
January 4, 2022
Business North Carolina has selected several Ward and Smith attorneys for inclusion in its 2022 Legal Elite edition. The annual publication lists the state’s top lawyers…
article
Can I Hold a Debtor’s Bank Account Hostage?
November 10, 2021
For creditors dealing with debtors in the shadow of bankruptcy, a common scenario repeats itself. The creditor repossesses collateral, attaches an account, or sets…
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A Paradigm Shift in Consumer Collections: How the CFPB’s Final Rule is Certain to Affect Creditors and Debt Collectors
November 3, 2021
The Fair Debt Collection Practices Act (FDCPA) is a dense federal statute that governs debt collection. If you have read some of my previous…
Firm News
7 Ward and Smith Attorneys Recognized as “Ones to Watch” by Best Lawyers®
September 9, 2021
Best Lawyers® has named seven Ward and Smith attorneys as “Ones to Watch” in its 2022 edition of Best Lawyers in America®. This honor…
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Use Clarity to Avoid Contempt in Bankruptcy
September 8, 2021
This is a story about contempt and clarity. It comes to us from a July 2021 North Carolina district court decision reversing a $115,000…
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So You Have A Judgment… Now What?
July 28, 2021
In North Carolina, many lawsuits result in the entry of a judgment that establishes one party’s right to collect payment of a certain amount…
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Their Aim Wasn’t True – The NRA and Bad Faith Bankruptcy Filings
July 7, 2021
Bankruptcy offers a temporary sanctuary for parties seeking relief from a variety of problems – financial crisis, lawsuits, collection actions, repossessions, foreclosure, and pandemics.…
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Struggling Hotels Can Provide Turn-Down Service, Can’t Be Turned Down for Subchapter V Bankruptcy
May 26, 2021
Subchapter V of Chapter 11 of the Bankruptcy Code, which took effect in February 2020, creates a more streamlined and less expensive Chapter 11…
Firm News
Ward and Smith and Attorneys Ranked in Chambers USA 2021
May 25, 2021
Chambers USA, an annual guide to America’s top law firms and lawyers, has recognized three Ward and Smith practice areas and two attorneys among…
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Congratulations Bankruptcy Graduates! You Are Now Eligible for PPP Loans.
May 3, 2021
To be eligible for a Paycheck Protection Program (“PPP”) loan, the applicant must certify on the borrower application that the applicant and any owner…
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To Encourage Landlords to Work with Struggling Tenants, Congress Removes a Powerful Weapon Wielded by Bankruptcy Trustees
April 7, 2021
Since the COVID-19 pandemic began, many tenants have seen their revenues plummet or disappear entirely as a result of state and local regulations on…
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Congress Extends Higher Debt Ceiling for Small Business Bankruptcies
March 30, 2021
We previously informed you that if you are a small business that needed to file bankruptcy to save your company, then you may be…
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More Breathing Room for Commercial Tenants in Bankruptcy
January 28, 2021
The Consolidated Appropriations Act of 2021 (“CAA”) took effect on December 27, 2020. The mammoth spending and COVID-19 pandemic relief bill contains provisions related…
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Supreme Court to Secured Creditors: “Hold on Loosely, But Don’t Let Go.”
January 19, 2021
Filing a bankruptcy petition automatically halts efforts to collect prepetition debts from the debtor outside of bankruptcy. This “automatic stay” is a command to…
Firm News
13 Ward and Smith Attorneys Listed in Business North Carolina’s 2021 “Legal Elite”
January 6, 2021
Business North Carolina has recognized 13 Ward and Smith attorneys as 2021 “Legal Elites.” Of the thousands of lawyers practicing across the state, only…
Firm News
Paul Fanning to Serve on Keynote Panel About Bankruptcy
November 24, 2020
Creditors’ rights attorney Paul Fanning will help Thomson Reuters kick off their 2020 Gear Up Online Conference, a premier CPE program for accountants and…
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Evict Like a Jerk and Suffer the Consequences
November 13, 2020
As the pandemic shows little signs of abating, and many sectors of the economy continue to struggle, the relationship between commercial landlords and tenants…
Firm News
Ward and Smith Recognized in 2021 Benchmark Litigation
October 27, 2020
Ward and Smith is thrilled to announce that the firm has been ranked in the 2021 edition of Benchmark Litigation, the definitive guide to the…
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What Do You Get When You Cross a $137,000 Cartier Necklace and a Debtor With Selective Amnesia? A Chapter 11 Trustee.
September 18, 2020
When a debtor files bankruptcy under Chapter 11, the bankruptcy court does not automatically appoint a trustee. Unlike Chapter 7, where the court appoints…
Firm News
4 Ward and Smith Attorneys Recognized as ‘Ones to Watch’ by Best Lawyers®
September 3, 2020
Best Lawyers® has selected four Ward and Smith attorneys for inclusion into its inaugural “Ones to Watch” list for 2021. This honor recognizes some…
Firm News
On Demand: Paul Fanning Featured in Free Bankruptcy Course for Small Businesses
August 31, 2020
Creditors’ rights attorney Paul Fanning is sharing his insights with business owners facing the possibility of bankruptcy for the first time due to COVID-19. …
Firm News
3 Ward and Smith Attorneys Named “Lawyer of the Year” by Best Lawyers®
August 27, 2020
Best Lawyers® has selected three Ward and Smith attorneys as “Lawyer of the Year” for 2021. This recognition is awarded to individual lawyers with the highest…
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Can a Business Owner Reorganize Guaranty Obligations Under Subchapter V?
August 21, 2020
We have previously informed you that if you are a small business that needed to file bankruptcy to save your company, then you may…
article
40,979 Reasons Not to “Press Charges” Against a Debtor in Bankruptcy
August 14, 2020
It is a cardinal sin to attempt to collect a debt or repossess collateral after a borrower files bankruptcy. Bankruptcy triggers the automatic stay…
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Controlling Expenses in Small Business Chapter 11 Cases
July 30, 2020
We previously informed you that if you are a small business that needed to file bankruptcy to save your company, you may be able…
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Leases, Bankruptcy, and Coronavirus: Force Majeure Edition
July 1, 2020
Many businesses in bankruptcy or heading that way – particularly retail establishments – face an uncertain future as states and cities impose closures and…
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Can a Debtor Choose Salvation Over Creditors?
June 24, 2020
In a Chapter 13 bankruptcy, debtors propose a plan to re-pay all or a portion of their debts. The amount to be repaid depends…
article
Leases and Bankruptcy in a Time of Coronavirus
May 27, 2020
Many businesses in bankruptcy or heading that way – particularly retail establishments – face an uncertain future as states and cities move from closures…
Firm News
Media Mention: Lance Martin Featured in “Fortune” Article on Bankruptcy
May 12, 2020
Fortune recently interviewed creditors’ rights attorney Lance Martin regarding a new bankruptcy tool that could help small business debtors. The online article, “A New Bankruptcy…
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COVID-19 Closed My Business. Can I Still Reorganize in Bankruptcy?
May 6, 2020
We previously informed you that if you are a small business that needed to file bankruptcy to save your company, then you may be…
article
Economic and Financial Uncertainty: How a Homeowners Association Can Protect Itself
April 30, 2020
In a short period of time, COVID-19 has changed the way we live and conduct business. Sadly, the pandemic seems as though it will…
Firm News
Ward and Smith and Attorneys Ranked in Chambers USA 2020
April 23, 2020
Chambers USA, an annual guide ranking top law firms and lawyers, has recognized two Ward and Smith practice areas and two attorneys as some…
article
Can the New Small Business Chapter 11 Save Your B&B or Airbnb?
April 17, 2020
We previously informed you that if you are a small business that needed to file bankruptcy to save your company, you may be able…
article
Can a Creditor Violate the Automatic Stay in Bankruptcy by Doing Nothing?
February 19, 2020
Filing a bankruptcy petition automatically halts efforts to collect pre-petition debts from the debtor outside of bankruptcy. If a creditor wants to continue a…
article
Harley-Davidson Dealer Violates Automatic Stay, Goes from Creditor to Judgment Debtor
December 13, 2019
If you lend money, you know – or should know – it is a cardinal sin to collect a debt or repossess collateral after…
article
Is it Time to Re-Write Your Attorney’s Fees Provision?
October 29, 2019
Bankruptcy court is not the first place that comes to mind when a lender thinks about full recovery on a loan. Usually, debtors file…
article
New Law More than Doubles Chapter 12 “Family Farmer” Debt Limit
August 26, 2019
On Friday, August 23, 2019, the President signed into law the Family Farmer Relief Act of 2019. The Act increases the debt limit used…
article
What Happens to My Lease in Bankruptcy?
August 2, 2019
Suppose you own farmland or retail commercial space and you lease your property. What happens to your lease if the lessee files bankruptcy? And…
article
Supreme Court: Rejection of a Trademark License by a Bankrupt Licensor Doesn’t Terminate the License
July 17, 2019
What happens if you are a trademark licensee and your licensor files for bankruptcy protection? Can the licensor unilaterally terminate your license and prohibit…
Firm News
Angela Doughty and Paul Fanning Named to Chambers USA 2019
June 20, 2019
Ward and Smith is thrilled to announce that two attorneys have been ranked in Chambers USA 2019. Angela Doughty was recognized for her outstanding…
article
Fourth Circuit Provides Relief to Chapter 13 Debtors for Some Underwater Mortgages
June 3, 2019
In a victory for Chapter 13 debtors, the United States Court of Appeals for the Fourth Circuit recently issued a major decision that changes…
article
Bankruptcy Discharge of Debts for Willful and Malicious Injury
May 29, 2019
Can a debtor discharge a debt arising out of a deliberate or intentional act that causes injury to you? A recent article addressed the…
article
Will My Judgment Get Discharged in Bankruptcy?
May 17, 2019
Bankruptcy is meant to provide a fresh start for the honest but unfortunate debtor. A debtor who files Chapter 7 does so with the…
article
Can I Get Sued Over a Court-Authorized Foreclosure?
April 15, 2019
If a Clerk of Court authorizes a foreclosure sale and the trustee sells the property, can a borrower or other aggrieved party later sue…
article
Are the Bankruptcy Courts Available for the Cannabis Industry?
March 8, 2019
Since 2012, ten states and the District of Columbia have legalized marijuana for adult recreational use. Another 23 states have legalized some form of…
article
Can I Recover Attorneys’ Fees in Bankruptcy?
February 11, 2019
The United States Court of Appeals for the Fourth Circuit — which covers federal courts in North Carolina — recently handed a big victory…
Firm News
Ward and Smith Recognized as a “Go-To Thought Leader”
January 8, 2019
The National Law Review (NLR) recently honored Ward and Smith with the Go-To Thought Leadership Award for “coverage of North Carolina real estate matters, including litigation,…
article
You Can’t Play Hide-And-Go-Seek in Chapter 11
December 19, 2018
In a Chapter 11 bankruptcy, the debtor attempts to reorganize its affairs in a Chapter 11 Plan. When the debtor files its proposed Plan,…
article
Will Bankruptcy Courts Treat Bitcoin as a Commodity?
December 5, 2018
What is virtual currency? Is it money? Is it a commodity? Is it a hybrid of the two or something else entirely? The answer…
article
I Want to Foreclose But I Can’t Find My Note. Do I Have a Problem?
November 16, 2018
In my last article, I discussed whether inconsistent dates on a promissory note and deed of trust could cause problems in foreclosure. But what…
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Lenders: Take a Hint! Forbearance or Modification Agreements Should Contain Specific Waiver Language To Protect Against “Regulation B” Claims
November 9, 2018
Lenders must comply with a constantly changing series of State and Federal laws and regulations. When loan relationships sour, and lenders seek to collect,…
article
My Note and Deed of Trust Have Different Dates. Do I Have a Problem?
September 26, 2018
Consider this scenario: You loan money to a borrower. You intend to secure the loan with a deed of trust encumbering real property. Your…
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In Chapter 7, Oral Lies Are Safer Than Written Lies
July 6, 2018
In my last article, I discussed how the Fourth Circuit Court of Appeals affirmed the denial of a Chapter 7 debtor’s discharge because the…
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In Chapter 7, Lowballing Your Assets Can Cost You Your Bankruptcy Discharge
June 20, 2018
The United States Court of Appeals for the Fourth Circuit—which covers North Carolina—recently decided a case that will have bankruptcy debtors thinking twice about…
article
Winning While Losing with Attorneys’ Fees Provisions
February 14, 2018
The United States District Court for the Middle District of North Carolina recently issued a decision that demonstrates the power of attorneys’ fees provisions…
article
Individual Chapter 11 Plans Also Are Just About Written in Stone
January 10, 2018
In an article last year, we informed you about a ruling from the United States Bankruptcy Court for the Eastern District of North Carolina,…
article
New Bankruptcy Rules that Creditors Need to Know and Follow
December 11, 2017
On December 1, 2017, several changes to the Federal Rules of Bankruptcy Procedure took effect. The changes involve consumer cases under Chapter 13 and…
article
In Bankruptcy, a Lease Isn’t Always a Lease
November 15, 2017
In In re Price, the United States Bankruptcy Court for the Eastern District of North Carolina recently explored the difference between a “true” lease…
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Supreme Court Absolutely Affirms the Absolute Priority Rule
April 6, 2017
The United States Supreme Court recently decided a case that impacts lenders and other creditors in Chapter 11 bankruptcy proceedings. The Supreme Court held…
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Lenders Seeking Loan Modification After Bankruptcy, Beware!
February 16, 2017
LENDERS CANNOT REVIVE A GUARANTY OBLIGATION DISCHARGED IN BANKRUPTCY WITH A SUBSEQUENT MODIFICATION OR FORBEARANCE AGREEMENT, EVEN WITH NEW CONSIDERATION; AND ATTEMPTING TO DO…
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North Carolina Court Clarifies Deadlines to Set Aside Fraudulent Conveyances
September 15, 2016
Recently, the North Carolina Court of Appeals, in the case of KB Aircraft Acquisition, LLC v. Berry, et al., clarified the time limit…
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Chapter 13 Plans are Just About Written in Stone
July 26, 2016
Recently, a bankruptcy judge in the United States Bankruptcy Court for the Eastern District of North Carolina issued a ruling that should help lenders…
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A Win for Creditors: Supreme Court Expands the Meaning of Actual Fraud for Bankruptcy Discharge
June 3, 2016
The United States Supreme Court recently decided a case that will be a powerful tool for lenders dealing with borrowers who engage in schemes…
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“Let The Lender Beware!”: The Surrender Of Commercial Real Estate Collateral In Chapter 11 “Dirt For Debt” Bankruptcy Plans
May 4, 2012
Over the last several years, lenders have experienced an increasing number of defaults on loans secured by commercial real estate. More defaults are likely…
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I’ve Been Sued for a Preference (and don’t feel preferred at all)
March 15, 2012
My business received a demand letter from a bankruptcy trustee for a bankrupt customer asking me to return payments I received for goods and…
