In re L.L. Murphrey Co: Secured Creditor Loses Liens and Credit Bidding Rights Over Failure to Perfect its Interests | Practical Law
The US Bankruptcy Court for the Eastern District of North Carolina in In re L.L. Murphrey Co. held that a creditor's failure to properly perfect a security interest created a "bona fide dispute" allowing the trustee to sell the property free and clear of the creditor's liens. This dispute also constituted sufficient "cause" to deny the creditor from credit bidding at the proposed sale of the property.