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Firm News

Ward and Smith Sponsors UNC School of Law’s 2026 Banking Institute

March 23, 2026

The University of North Carolina School of Law’s Center for Banking and Finance will host its annual Banking Institute on Thursday and Friday, March 26–27, 2026, at The…
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Bonnie and Claude: The Court Ruling That Could Expose Fraudster’s AI Conversations

March 11, 2026

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Written By Angela P. Doughty, CIPP/US, AIGP, FIP and Lance P. Martin
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

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…
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…
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Essential Strategies for North Carolina Creditors: Foreclosures, Fraudulent Transfers, and Piercing the Corporate Veil

September 19, 2025

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Written By Norman J. Leonard and Thomas C. Wolff
Not every loan proceeds as planned. When borrowers default, understanding available legal options can mean the difference between recovery and writing off substantial losses.…
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

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Written By Lance P. Martin and Thomas C. Wolff
  Lenders have likely encountered situations where borrowers push back against collection efforts. Sometimes, they may even accuse you of causing them harm through…
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Entitled to Stay Relief? Prove it.

March 18, 2025

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Written By Jameson A.E. Doub and Lance P. Martin
Bankruptcy is a headache for lenders.  For example, you make a commercial real estate loan and record your deed of trust.  The borrower pays…
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Risky Business: Distressed Companies and Payments in the Shadow of Bankruptcy

February 18, 2025

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Written By Lance P. Martin
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

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…
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Shocker! Fraudulent Transfer Leads to Judgment Against Transferee

October 1, 2024

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Written By Lance P. Martin
The 16th Century gave plenty to the world – Leonardo da Vinci’s “Mona Lisa,” the Scientific Revolution, the Protestant Reformation, Michaelangelo’s “David,” and the…
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The Perils of Over-Lawyering in Bankruptcy

August 16, 2024

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Written By Lance P. Martin
For a lender in bankruptcy, the best situation is to be an over-secured creditor, meaning the value of your collateral exceeds your debt.  A…
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…
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Should I Care About the Purdue Pharma Decision?

July 8, 2024

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Written By Lance P. Martin
On June 27, 2024, the United States Supreme Court decided the Purdue Pharma appeal. In a five-to-four decision, the Supreme Court held that a…
Firm News

Dive into Ponzi Schemes with Ward and Smith’s Special Assets Webinar: Register Now

July 3, 2024

Mark your calendars for July 17! We invite you to join a vital and enlightening webinar as part of their Summer School Series – the…
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It Just Got More Difficult to Qualify For Subchapter V Bankruptcy

June 28, 2024

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Written By Lance P. Martin
Subchapter V of Chapter 11 of the Bankruptcy Code, which took effect four years ago, creates a more streamlined and less expensive Chapter 11…
Firm News

Paul Fanning to Speak at the 2024 NCCBA Annual CLE Conference

June 20, 2024

Bankruptcy and creditors’ rights attorney Paul Fanning will be a featured speaker at the North Carolina Creditors Bar Association’s highly anticipated 2024 Annual CLE Conference. The…
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A Primer for Creditors Navigating the Bankruptcy System

June 11, 2024

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Written By Jameson A.E. Doub and Thomas C. Wolff
Bankruptcy filings affect businesses across America. The Bankruptcy Code is complex and difficult to navigate.  But when used properly, it can help creditors to…
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Can I Require a “True Up” in a Subchapter V Plan of Reorganization?

May 28, 2024

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Written By Lance P. Martin
For creditors, it can be difficult to navigate the financial difficulties of your customers. It seems like it would only get worse in bankruptcy,…
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Charging Order Limitations – You Can’t Charge What They Don’t Own

April 23, 2024

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Written By Lilian L. Faulconer and Lance P. Martin
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

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Written By Jameson A.E. Doub and Thomas C. Wolff
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

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Written By Lilian L. Faulconer and Lance P. Martin
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

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Written By Lance P. Martin
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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A Discharge Lesson Courtesy of the Worst Person in the World

January 17, 2024

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Written By Lance P. Martin
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

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Written By Lance P. Martin
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…
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…
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Economic Growth and Disclosure Laws: Financial Insights From the Annual Factoring Conference

July 5, 2023

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Written By Thomas C. Wolff
Recently, I had the privilege to attend the 29th Annual Factoring Conference in New Orleans. This annual conference is a unique event presented by…
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Fourth Circuit Says “Do the Math” For Attorneys’ Fees Awards

May 5, 2023

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Written By Lilian L. Faulconer and Lance P. Martin
In North Carolina, a loan agreement can require a borrower to pay attorneys’ fees upon default to reimburse the lender for collection expenses. The…
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No Discharge for Bonnie, No Discharge for Clyde.

March 10, 2023

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Written By Lance P. Martin
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…
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In Foreclosure, Your Attorney Can Be Counsel or Trustee, But Not Both

October 19, 2022

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Written By Lance P. Martin
Five years ago, the General Assembly amended the foreclosure statute to prohibit an attorney who serves as trustee or substitute trustee from representing the…
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Fireworks, Hot Dogs, and Bankruptcy?

July 26, 2022

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Written By Lilian L. Faulconer and Lance P. Martin
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…
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

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Written By Lance P. Martin
If a business engages in bad behavior like intentional interference with contract and tortious interference with business relations, then it may not use Subchapter…
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Subchapter V Debt Ceiling Restored to $7.5 Million

June 23, 2022

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Written By Lance P. Martin
In a welcome feat of bipartisanship, Congress passed a bill to restore the Subchapter V debt limit to $7.5 million, and President Biden signed…
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…
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Cyber Threats, Creativity, and Growth: Recapping the 2022 Annual Factoring Conference

June 15, 2022

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Written By Thomas C. Wolff
Last month, I attended the 28th Annual Factoring Conference presented by the International Factoring Association (IFA) in Boston.  This is the world’s largest conference of…
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“My Lawyer Made Me Do It” is Not an Absolute Defense to Bankruptcy Court Sanctions

May 31, 2022

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Written By Lance P. Martin
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…
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Even Indirect Income from Cannabis Can Get You Banned From Bankruptcy

May 4, 2022

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Written By Lance P. Martin and Tyler J. Russell
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

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Written By Lilian L. Faulconer and Lance P. Martin
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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Debt Ceiling Shrinks for Small Business Bankruptcies

March 30, 2022

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Written By Lance P. Martin
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 Sponsors 2022 Washington Summit

March 3, 2022

Ward and Smith is a proud sponsor of the American Bankers Association’s 2022 Washington Summit.  This two-day event in our nation’s capital runs from…
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More Bad News for Non-Debtors Seeking Releases in Chapter 11

February 9, 2022

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Written By Lance P. Martin
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,…
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Who Gets Released in Chapter 11?

January 7, 2022

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Written By Lance P. Martin
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…
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Can I Hold a Debtor’s Bank Account Hostage?

November 10, 2021

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Written By Lance P. Martin
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

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Written By Thomas C. Wolff
The Fair Debt Collection Practices Act (FDCPA) is a dense federal statute that governs debt collection.  If you have read some of my previous…
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Pushing the Limits: Nielson v. Schmoke Clarifies the Outer Limits of Domesticating Foreign Judgments

September 15, 2021

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Written By Thomas C. Wolff
The North Carolina Court of Appeals issued a decision recently, providing clarity on how much time creditors have to domesticate a foreign judgment to…
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Use Clarity to Avoid Contempt in Bankruptcy

September 8, 2021

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Written By Lance P. Martin
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

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Written By Tyler J. Russell and Thomas C. Wolff
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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A Summary of Bank-Related Provisions of President Biden’s July 9th Executive Order Promoting Competition

July 12, 2021

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Written By B.T. Atkinson and William R. Lathan, Jr.
On July 9, 2021, President Joseph R. Biden, Jr. signed an executive order “on promoting competition in the American economy” (the “Order”).  The White…
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Their Aim Wasn’t True – The NRA and Bad Faith Bankruptcy Filings

July 7, 2021

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Written By Lance P. Martin
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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Banking on Hemp: Financial Services for a Growing Industry

April 28, 2021

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Written By Tyler J. Russell
The Agriculture Improvement Act of 2018 (“Farm Bill”) became law more than two years ago, decriminalizing hemp and its derivatives and opening the door…
Firm News

Veteran Banking Attorney B.T. Atkinson Returns to Ward and Smith

April 22, 2021

We are pleased to announce veteran business attorney B.T. Atkinson has re-joined Ward and Smith. He started his career with the firm in 1992…
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Congress Extends Higher Debt Ceiling for Small Business Bankruptcies

March 30, 2021

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Written By Lance P. Martin
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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Supreme Court to Secured Creditors: “Hold on Loosely, But Don’t Let Go.”

January 19, 2021

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Written By Lance P. Martin
Filing a bankruptcy petition automatically halts efforts to collect prepetition debts from the debtor outside of bankruptcy.  This “automatic stay” is a command to…
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The North Carolina Commercial Receivership Act: What Creditors Need to Know About the New Statute

December 30, 2020

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Written By Thomas C. Wolff
On July 1, 2020, Governor Cooper signed the North Carolina Commercial Receivership Act (the “Act”) into law.  The Act, spearheaded by the Bankruptcy Section…
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Evict Like a Jerk and Suffer the Consequences

November 13, 2020

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Written By Lance P. Martin
As the pandemic shows little signs of abating, and many sectors of the economy continue to struggle, the relationship between commercial landlords and tenants…
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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

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Written By Lance P. Martin
When a debtor files bankruptcy under Chapter 11, the bankruptcy court does not automatically appoint a trustee.  Unlike Chapter 7, where the court appoints…
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Executives Explore the Ins and Outs of Managing Vendors and Vendor Risk in Compliance-Intensive Industry

September 9, 2020

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Written By Hayley R. Wells
Three executives from First Citizens Bank explained how they manage vendor and supplier relationships, including issues such as risk management and compliance, during a…
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Can a Business Owner Reorganize Guaranty Obligations Under Subchapter V?

August 21, 2020

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Written By Lance P. Martin
We have previously informed you that if you are a small business that needed to file bankruptcy to save your company, then you may…
Firm News

41 Ward and Smith Attorneys Named to “Best Lawyers in America®” for 2021

August 20, 2020

Ward and Smith is proud to announce that nearly half of the firm’s attorneys have been recognized by one of the most respected and trusted…
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40,979 Reasons Not to “Press Charges” Against a Debtor in Bankruptcy

August 14, 2020

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Written By Lance P. Martin
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

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Written By Lance P. Martin
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

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Written By Lance P. Martin
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

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Written By Lance P. Martin
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…
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Loan Modification and Reporting During the COVID-19 Crisis

April 8, 2020

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Written By Lance P. Martin
We reported that, on March 9, 2020, the Federal Reserve, Office of the Comptroller of the Currency, Federal Deposit Insurance Corp., Consumer Financial Protection Bureau,…
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Paycheck Protection Program Loans and the Business Affiliation Rules: “Don’t Wing It”

April 3, 2020

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Written By James W. Norment
We have written a great deal about the CARES Act and the small business loans available to eligible applicants. New guidance about these loan…
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Foreclosure and Forbearance Under the CARES Act

April 2, 2020

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Written By Lance P. Martin
The CARES Act, which became law on March 27, 2020, imposes important restrictions on foreclosure activity by servicers of federally-backed mortgage loans. It also…
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For Existing SBA Loans, the SBA Will Make Your Payments for Six Months

April 1, 2020

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Written By Lance P. Martin
While much of the focus of the CARES Act has been on the Paycheck Protection Program, which allocates $349 billion for new SBA loans…
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Treasury Department Releases Vital Paycheck Protection Program Information

March 31, 2020

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Written By William S. Durr
The much-anticipated CARES Act provided for the Paycheck Protection Program, which is meant to help small businesses both retain their employees and meet their…
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SBA Allows Scanned Copies of Documents During COVID-19 Crisis

March 27, 2020

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Written By Lance P. Martin
The SBA permits SBA Lenders to use electronic signatures on SBA forms and other documents requiring signatures on 7(a) and 504 business loans provided…
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Understanding the New “Fast-Pass” Small Business Bankruptcy Process

March 24, 2020

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Written By Lance P. Martin
With COVID-19 and the attempts to contain it causing cataclysmic business interruption, many small businesses may find themselves on the brink of insolvency.  While…
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Servicing SBA Loans During the COVID-19 Crisis

March 18, 2020

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Written By Lance P. Martin
With COVID-19 shutting down whole swaths of the economy, the SBA has issued a notice to SBA 7(a) Lenders and 504 Certified Development Companies…
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Federal Regulators Urge Banks to Work with Borrowers Affected by the Coronavirus

March 16, 2020

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Written By Lance P. Martin and Thomas C. Wolff
In the last week, COVID-19 has upended the normal routines of daily life in America.  While the health and safety of all Americans is…
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Can a Creditor Violate the Automatic Stay in Bankruptcy by Doing Nothing?

February 19, 2020

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Written By Lance P. Martin
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…
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Supreme Court Rules “Now or Never” to Appeal Stay Relief Denials

January 20, 2020

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Written By Lance P. Martin
Under the Bankruptcy Code, filing a bankruptcy petition automatically halts efforts to collect pre-petition debts from the debtor outside of bankruptcy.  This is the…
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Harley-Davidson Dealer Violates Automatic Stay, Goes from Creditor to Judgment Debtor

December 13, 2019

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Written By Lance P. Martin
If you lend money, you know – or should know – it is a cardinal sin to collect a debt or repossess collateral after…
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Finishing the Job: The Importance of Domesticating a Foreign Judgment

December 4, 2019

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Written By Thomas C. Wolff
How does a creditor enforce a judgment against a debtor who either relocates to another state, or owns property in another state?  If the…
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Is it Time to Re-Write Your Attorney’s Fees Provision?

October 29, 2019

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Written By Lance P. Martin
Bankruptcy court is not the first place that comes to mind when a lender thinks about full recovery on a loan.  Usually, debtors file…
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How to Write an Effective SBA Litigation Plan

October 16, 2019

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Written By Lance P. Martin
When an SBA loan goes into default, the SBA requires a lender to commence litigation when the lender concludes that (1) defensive action is…
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Best Practices When Liquidating Real Estate-Secured SBA Loans

September 25, 2019

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Written By Lance P. Martin
For several years, the United States Small Business Administration (SBA) has experienced continuous growth with its flagship 7(a) and 504 business loan programs.  For…
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New Law More than Doubles Chapter 12 “Family Farmer” Debt Limit

August 26, 2019

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Written By Lance P. Martin
On Friday, August 23, 2019, the President signed into law the Family Farmer Relief Act of 2019.  The Act increases the debt limit used…
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What Happens to My Lease in Bankruptcy?

August 2, 2019

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Written By Lance P. Martin
Suppose you own farmland or retail commercial space and you lease your property.  What happens to your lease if the lessee files bankruptcy?  And…
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Supreme Court Sets Standard for Bankruptcy Discharge Violations

June 27, 2019

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Written By Lance P. Martin
When your customer is in bankruptcy, there are two major no-nos that you must remember.  First, don’t violate the automatic stay, which prevents a…
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Fourth Circuit Provides Relief to Chapter 13 Debtors for Some Underwater Mortgages

June 3, 2019

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Written By Lance P. Martin
In a victory for Chapter 13 debtors, the United States Court of Appeals for the Fourth Circuit recently issued a major decision that changes…
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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…
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Will My Judgment Get Discharged in Bankruptcy?

May 17, 2019

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Written By Lance P. Martin
Bankruptcy is meant to provide a fresh start for the honest but unfortunate debtor.  A debtor who files Chapter 7 does so with the…
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Can I Get Sued Over a Court-Authorized Foreclosure?

April 15, 2019

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Written By Lance P. Martin
If a Clerk of Court authorizes a foreclosure sale and the trustee sells the property, can a borrower or other aggrieved party later sue…
Firm News

Highlights From IMN’s Bank Special Assets Forum

February 26, 2019

On February 11-12, Lance Martin attended the Information Management Network’s Ninth Annual Bank Special Assets & Credit Officer’s Forum in Miami, Florida.  The conference…
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,…
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You Can’t Play Hide-And-Go-Seek in Chapter 11

December 19, 2018

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Written By Lance P. Martin
In a Chapter 11 bankruptcy, the debtor attempts to reorganize its affairs in a Chapter 11 Plan.  When the debtor files its proposed Plan,…
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I Want to Foreclose But I Can’t Find My Note. Do I Have a Problem?

November 16, 2018

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Written By Lance P. Martin
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

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Written By Michael J. Parrish
Lenders must comply with a constantly changing series of State and Federal laws and regulations. When loan relationships sour, and lenders seek to collect,…
Firm News

Angela Doughty to Speak at the 2018 Fraud and A&A Conference

October 22, 2018

Intellectual property and privacy attorney Angela Doughty will be a featured speaker at this year’s Fraud and A&A Conference in Greensboro on Monday, October…
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Should You Bank a Virtual Currency Business?

September 28, 2018

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Written By Lance P. Martin
Virtual currencies like Bitcoin and Ethereum have spawned many types of businesses that need banking services.  Many banks “de-risk” — do not provide banking…
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My Note and Deed of Trust Have Different Dates. Do I Have a Problem?

September 26, 2018

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Written By Lance P. Martin
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, Lowballing Your Assets Can Cost You Your Bankruptcy Discharge

June 20, 2018

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Written By Lance P. Martin
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…
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Can I Secure a Loan with Bitcoin? Part I

March 16, 2018

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Written By Lance P. Martin
Each day seems to bring another story about Bitcoin, Ethereum, Litecoin, or another virtual currency. If virtual currencies continue to grow in popularity, it’s…
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Winning While Losing with Attorneys’ Fees Provisions

February 14, 2018

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Written By Lance P. Martin
The United States District Court for the Middle District of North Carolina recently issued a decision that demonstrates the power of attorneys’ fees provisions…
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New Bankruptcy Rules that Creditors Need to Know and Follow

December 11, 2017

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Written By Lance P. Martin
On December 1, 2017, several changes to the Federal Rules of Bankruptcy Procedure took effect. The changes involve consumer cases under Chapter 13 and…
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Your Foreclosure Hearing Just Got More Crowded

October 9, 2017

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Written By Lance P. Martin
On August 30, 2017, an amendment to North Carolina’s foreclosure statutes took immediate effect.  The amended statute, Section 45-10, concerns substitute trustees under a…
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600,000 Reasons to Comply with the Fair Credit Reporting Act

September 13, 2017

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Written By Lance P. Martin
The United States Court of Appeals for the Fourth Circuit—which covers federal courts in North Carolina—recently affirmed a borrower’s victory against a loan servicer…
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Supreme Court Absolutely Affirms the Absolute Priority Rule

April 6, 2017

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Written By Lance P. Martin
The United States Supreme Court recently decided a case that impacts lenders and other creditors in Chapter 11 bankruptcy proceedings.  The Supreme Court held…
Firm News

Media Mention: John Sloan’s Insightful Discussion on Wealth Management

March 27, 2017

It’s always a great idea to have a back-up plan, even in uncertain times.  And one way to secure your future, at least financially,…
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Lenders Seeking Loan Modification After Bankruptcy, Beware!

February 16, 2017

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Written By Paul A. Fanning and Norman J. Leonard
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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Flipping the Script: Court holds that a Lender can sue a Borrower for Unfair and Deceptive Trade Practices

January 12, 2017

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Written By Lance P. Martin
Recently, in Makadia v. Continental Waste Management, LLC, the United States District Court for the Eastern District of North Carolina considered a matter that…
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North Carolina Court Clarifies Deadlines to Set Aside Fraudulent Conveyances

September 15, 2016

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Written By Lance P. Martin
  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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North Carolina Supreme Court Upholds Boilerplate Waiver and Release Language to Defeat Lender Liability

January 4, 2016

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Written By Lance P. Martin
Recently, in Ussery v. BB&T, the North Carolina Supreme Court issued an opinion that provides a powerful weapon for lenders.  The North Carolina Supreme…
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A Blueprint for Damage Control for Bankruptcy Code Violations

November 18, 2015

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Written By Lance P. Martin
Recently, a bankruptcy judge in the United States Bankruptcy Court for the Eastern District of North Carolina issued a ruling that reminds lenders of…
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Secured Creditors Entitled to Contract Interest Rate in Chapter 13 Plans

October 8, 2015

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Written By Lance P. Martin
Recently, a bankruptcy judge in the United States Bankruptcy Court for the Middle District of North Carolina issued a ruling that should help lenders…
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North Carolina Supreme Court Extends “Offset Defense” to Guarantors in Foreclosure Deficiency Actions

September 28, 2015

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Written By Lance P. Martin
On September 25, 2015, the North Carolina Supreme Court handed down a landmark decision that will radically alter the process by which lenders pursue…
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Are Deficiency Actions Now Dead In North Carolina?

February 27, 2015

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Written By Lance P. Martin
On February 17, 2015, the North Carolina Court of Appeals handed down a decision that, if not reversed by the North Carolina Supreme Court,…
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1.5 Billion Reasons To Be Careful With Your UCC Termination Statement

January 28, 2015

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Written By Lance P. Martin
The Uniform Commercial Code (“UCC”) contains important rules that creditors must understand and follow if they want to create and maintain perfected and enforceable…
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Please Release Me: How To Obtain Or Prevent Third-Party Releases In Bankruptcy

January 20, 2015

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Written By Lance P. Martin
Bankruptcy protection—particularly a Chapter 11 reorganization—can be a powerful tool for a company in financial distress.  But can a debtor company go even further…
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Prove It Or Lose It: How Not To Botch A Foreclosure

December 29, 2014

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Written By Lance P. Martin
If you are a lender with real estate-secured loans in your portfolio that you acquired from another institution, or if you routinely buy commercial…
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2014 Update On The JOBS Act – Beware: Some Assembly Required

September 19, 2014

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Written By E. Knox Proctor V
The Jumpstart Our Business Startups Act (“JOBS Act” or “Act”) was a bipartisan effort in Congress to unleash the power of 21st Century communications…
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The SEC Rule 506 “Bad Actor” Final Rules

September 19, 2014

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Written By E. Knox Proctor V
The new “bad actor” rules promulgated by the Securities and Exchange Commission (“SEC”) in Rule 506 require issuers to take “reasonable care” to verify…
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Deal Makers in the Rule 506 Market – Section 201(c) of the JOBS Act

September 19, 2014

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Written By E. Knox Proctor V
There can’t be a vibrant securities market without deal makers.  Someone has to bring buyers and sellers together so they can do deals.  Traditionally,…
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“IPO On-Ramp” Provisions

September 19, 2014

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Written By E. Knox Proctor V
The IPO On-Ramp, unlike most other provisions, of the Jumpstart Our Business Startups Act (“JOBS Act”) did not require rulemaking by the Securities and…
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Exchange Act Registration and Reporting Triggers

September 19, 2014

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Written By E. Knox Proctor V
Companies with over $10 million in assets and which have a certain number of “record holders” of a class of securities must register under…
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Small Securities Offerings Getting Bigger – Regulation A+

September 19, 2014

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Written By E. Knox Proctor V
The Jumpstart Our Business Startups Act (“JOBS Act”) amends Section 3(b) of the Securities Act of 1933 (“Securities Act”) to require that the Securities…
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SEC Proposed Crowdfunding Rules

September 19, 2014

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Written By E. Knox Proctor V
The Basics –– Technology Platform Operators and Issuers “Crowdfunding,” the selling of small securities offerings in small increments to many buyers (“Crowd”), may have…
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Rule 506(c) Private Offerings General Solicitation and Advertising Provisions

September 19, 2014

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Written By E. Knox Proctor V
General Background “Regulation D” allows for certain securities offerings to be exempt from the registration requirements of Section 5 of the Jumpstart Our Business…
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North Carolina Supreme Court Rules that ECOA Defenses May Be Waived by Obligors

September 18, 2014

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Written By Lance P. Martin
On August 20, 2014, the North Carolina Supreme Court issued an opinion that provides a powerful tool for lenders with spousal guaranty agreements in…
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Beware of “Red Flags”: What Must Your Business Do to Protect Customers from Identity Theft?

July 3, 2013

State and federal laws, including Federal Trade Commission regulations that were revised in late 2012, require certain businesses to play an active role in…
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Having Trouble Raising Capital? The Jumpstart Our Business Startups (“JOBS”) Act May Help

September 5, 2012

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Written By E. Knox Proctor V
Having Trouble Raising Capital? You know you’re not the only one with a problem when Congress and the President agree there is a problem…
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Overview Of The Jumpstart Our Business Startups (“JOBS”) Act

July 18, 2012

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Written By E. Knox Proctor V
The JOBS Act signed by the President on April 5, 2012, may offer better capital-raising opportunities to many tech companies and reduce their SEC…
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I’ve Been Sued for a Preference (and don’t feel preferred at all)

March 15, 2012

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Written By Paul A. Fanning
My business received a demand letter from a bankruptcy trustee for a bankrupt customer asking me to return payments I received for goods and…
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Distressed Real Estate Developments and Declarant Rights: Potential Traps for Foreclosing Lenders

March 1, 2012

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Written By Samuel B. Franck
One of the most complex and challenging categories of OREO assets is distressed real estate developments.  An unsettling number of stalled residential and commercial…
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Legal Myths on Trial: FDIC Deposit Insurance

November 15, 2011

In the aftermath of the financial crisis and ongoing bank seizures across the country, rumors and half-truths regarding FDIC deposit insurance have become widespread. …
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Time is Running Out to Apply to Participate in the Small Business Lending Fund

March 8, 2011

Special Bulletin The Small Business Lending Fund (“SBLF”) is a $30 billion fund created to provide low-cost capital to community banking institutions and encourage…
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Anatomical Gifts and Funeral Planning

December 15, 2010

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Written By E. Knox Proctor V
Anatomical Gifts This paper covers House Bill 13721 from a planning perspective.  It does not address all aspects of anatomical gifts.  Representative Dale Folwell,…
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North Carolina Environmental Agency Agrees That Banks and Other Lenders Have No Liability for Underground Storage Tanks — But…!

February 16, 2010

Special Bulletin You are a bank or other lender (collectively referred to herein as “Banks”) and are contemplating foreclosing on a property containing underground…
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New North Carolina Law on Foundation Funds — UPMIFA

May 19, 2009

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Written By E. Knox Proctor V
As markets tumbled in late 2008, many charities feared North Carolina’s “Uniform Management of Institutional Funds Act” (“UMIFA”), which then governed their endowments, would…

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