Court Locations

Greenbelt
6500 Cherrywood Ln - Greenbelt, MD 20770 - Main Tel: 301-344-8018 map
Baltimore
101 W Lombard St Room 8530 - Baltimore, MD 21201 - Main Tel: 410-962-2688
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A trial was held on cross complaints filed by two secured lenders and the Chapter 7 trustee seeking a declaratory judgment concerning whether Chapter 7 debtor’s residence titled in the name of his wholly-owned corporation was property of his bankruptcy estate and the validity of liens. Held, reverse veil-piercing was appropriate under Maryland law to bring the property within the bankruptcy estate where debtor set up the corporation solely to own his residence, he did not observe corporate formalities, and he used the corporation to launder money to hinder, delay and defraud creditors; lien of the senior secured lender was void under Maryland law because it had been released of record by an unknown party that filed an incorrect certificate of satisfaction; while the junior lien was valid, the trustee took priority to it as successor to the first lienholder’s position.

Entered: 
2008-09-30
Case: 
04-16203
Judge: 
James F. Schneider