Ann E. Schmitt, VSB # 22030

CULBERT & SCHMITT, PLLC

40834 Graydon Manor Lane

Leesburg, VA 20175

(703) 737-7797

aschmitt@culbert-schmitt.com

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UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

Alexandria Division

____________________________________

In re:

THE MORGAN CENTER, INC. CASE NO. 19-13278-BFK

Debtor CHAPTER 7

___________________________________

MOTION TO CONSOLIDATE CHAPTER 7 CASES

The Morgan Center (“Morgan Center”), by counsel, hereby files this Motion seeking an 

order consolidating this case with the Chapter 7 case of Northern Virginia Advocacy and 

Counseling, Inc., Chapter 7 Case No. 19-13319-BFK, and in support thereof states as follows:

1. This case was filed as a voluntary case under Chapter 7 of Title 11 on October 3, 

2019 (the “Petition Date”). Janet Meiburger has been appointed the Chapter 7 trustee. The first 

meeting of creditors was held on November 7, 2019.

2. During the period of its operations, Morgan Center provided services to clients 

involving or related to (i) Family Therapy, (ii) Stress Management, (iii) Separation and Divorce 

Therapy, (iv) PTSD Therapy for Veterans, (v) Grief and Loss Therapy for children, (vi) Anxiety 

and Depression Therapy, (vii) Post-partum Depression Therapy, (viii) Attention Deficit 

Disorders Counseling, (ix) Autism Counseling, (x) Special Education Advocacy, (xi) 

Educational Consulting, (xii) Autism social skills, (xiii) ABA Services, (xiv) Nutrition 

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Counseling, (xv) Workshops, (xvi) Professional Talks at area schools, (xvii) Professional talks at 

area businesses on work-related issues, (xviii) Child Development, (xix) Forensic Evaluations, 

(xx) Psychological Testing for learning Disabilities, (xxi) Mediation, (xxii) Mediation Plus, 

(xxiii) Parent Reunification, (xxiv) Parent Coordination, (xxv) Supervised Visitation, 

(xxvi) Expert Witness testimony on Custody-related issues, (xxvii) Psychiatric services, (xviii) 

Social skills groups for children, (xxix) Women's' Groups, and (xxx) Men's' groups.

3. Morgan Center ceased business operations in May 2017.

4. The NVAC chapter 7 proceeding was filed on October 7, 2019. Donald King has 

been appointed the interim Chapter 7 trustee. The first meeting of creditors was held on 

November 14, 2019.

5. Prior to the filing of its bankruptcy, in contrast with the broad menu of services 

provided by Morgan Center, NVAC provided a more limited range of services to clients 

involving or related to (i) Anxiety and depression Therapy, (ii) Special Education Advocacy, (iii) 

Psychological Testing for Children exposed to Trauma, and (iv) Attachment Evaluations.

6. In October 2018, Michael Handberg, who holds a judgment against Morgan 

Center, filed suit against both companies alleging a fraudulent transfer of Morgan Center assets

or “business” to NVAC and further alleging that NVAC was the alter ego/successor entity of/to 

Morgan Center (the “State Court Litigation”). The basis for the State Court Litigation was, in 

part, that NVAC had purchased certain tangible assets of Morgan Center and subleased Morgan 

Center’s commercial space for the balance of the lease term, approximately six (6) months.

7. There are insufficient assets in either estate to pursue or defend claims of 

fraudulent conveyance and/or successor liability. The second largest creditor of Morgan Center, 

Michael Handberg has a claim against Morgan Center and is listed as a disputed creditor in the 

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NVAC case. Based on the allegations in the State Court Litigation, it is expected that 

Mr. Handberg will assert this claim against NVAC. The largest creditor in both cases is the law 

firm of Campbell Flannery, which provided legal services to both debtors in the State Court 

Litigation. These two claims account for 85% of Morgan Center debt and 89% of the NVAC 

debt.

8. As the assets and liabilities of the two companies are essentially the same, it 

makes no sense for the two chapter 7 cases to be administered separately or for the parties and/or 

estates to expend more financial and judicial resources fighting over the issues raised in the State 

Court Litigation. Indeed, consolidation would achieve the very thing Mr. Handberg purportedly 

wished to accomplish in the State Court Litigation – namely, the ability to assert a claim against 

NVAC and/or its assets. 

9. Campbell Flannery does not object to the consolidation of the cases.

10. Neither of the Chapter 7 trustees objects to the consolidation of the cases, nor 

does the Office of the United States Trustee. After consultation with all of these parties, the 

consensus is that it would be best if Janet Meiburger is appointed trustee for the consolidated 

cases. Trustee Meiburger has indicated a willingness to serve as trustee and to administer the 

consolidated case.

11. Debtor believes that it is in the best interest of creditors in both cases for the cases 

to be consolidated. This will allow the most economical administration of the estates and should 

allow for a small distribution to creditors. If the cases are not consolidated, it is not expected that 

any assets will be available for creditors and that any remaining value would likely be exhausted 

through unnecessary litigation between the estates.

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WHEREFORE, Debtor asks the court to enter an order consolidating the cases and 

granting such other relief as is just.

THE MORGAN CENTER, INC.

By Counsel:

/s/ Ann E. Schmitt

Ann E. Schmitt, VSB # 22030

CULBERT & SCHMITT, PLLC

40834 Graydon Manor Lane

Leesburg, VA 20175

703-737-7797

aschmitt@culbert-schmitt.com

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UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

Alexandria Division

____________________________________

In re:

THE MORGAN CENTER, INC. CASE NO.: 19-13278-BFK

Debtor CHAPTER 7

___________________________________

ORDER CONSOLIDATING CASES

THIS MATTER came on upon the Motion of the Debtor seeking a consolidation of this 

case with that of Northern Virginia Advocacy and Consulting, Inc., Case No. 19-13319-BFK, 

and the Motion having been duly noticed and no objection having been filed, and 

IT APPEARING TO THE COURT that the relief requested is appropriate, it is therefore

ORDERED that this case is substantially consolidated with that of Northern Virginia 

Advocacy and Consulting, Inc. and that both cases will be designated as follows:

In re: Case No. 19-13278-BFK 

(consolidated)

The Morgan Center Chapter 7

 Debtor(s)

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Date: ____________________ ________________________

Brian F. Kenney

The Morgan Center, Inc.

By Counsel:

_____________________________

Ann E. Schmitt, VSB # 22030

CULBERT & SCHMITT, PLLC

40834 Graydon Manor Lane

Leesburg, VA 20175

(703) 737-7797

aschmitt@culbert-schmitt.com

CERTIFICATE OF SERVICE

I hereby certify that a true and correct copy of the foregoing, together with a copy of the 

Motion, were served by electronic mail on James Campbell at jcampbell@campbellflannery.com

and on all parties on the attached mailing list, this 25th day of November, 2019.

/s/ Ann E. Schmitt

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