ABI's Bankruptcy case opinion summaries website provides summaries of bankruptcy-related opinions issued by U.S. Bankruptcy Courts, District Courts and Circuit Courts of Appeal since 2005. Search more than 11,000 opinion summaries by keyword, relevant code section, court and judge. Opinion summaries are provided by our partner LexisNexis® Collier and are updated weekly.

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In re ADI Liquidation, Inc.

Ruling: Employee’s claim for severance pay was entitled to fourth priority status. (Bankr. D. Del.)
Issue: Priorities; Order of Priorities; Wages, Salaries, or Commissions.
Holdings: [1]-An employee who worked for a corporation that declared Chapter 11 bankruptcy was entitled to receive $8,693.70 in severance pay from the corporation's bankruptcy estate as a fourth priority claim under 11 U.S.C.S. § 507(a)(4) because he earned fifteen weeks of severance pay under the...

In re Lundy

28 U.S.C.
Ruling: Denial of confirmation of chapter 13 plan absent objection was not grounds fordisqualification of a bankruptcy judge. (Bankr. N.D. Ohio)
Issue: Disqualification of Justice, Judge, or Magistrate
Holdings: [1]-Disqualification of the bankruptcy judge pursuant to 28 U.S.C.S. § 455(a) after the court decided to not confirm debtor's Chapter 13 plan, despite the absence of a written objection filed by the Chapter 13 trustee, was not warranted because the court had an independent duty in determining...

Vokshori Law Group, APLC v. Henriquez (In re Henriquez)

Ruling: Debt to law firm arising from legal services agreement was nondischargeable. (Bankr. C.D. Cal.)
Issue: Exceptions to Discharge; Types of Debt Excepted; Fraud; False Pretenses, False Representations or Actual Fraud.
Holdings: [1]-In this 11 U.S.C.S. § 523(a)(2)(A) matter, the Legal Services Agreement (LSA) controlled the terms of contract between the parties and no provision relieved debtor of the obligation to pay the law firm's fees and expenses even if loan modification efforts failed. Thus, debtor was indebted to it...

Dixon v. Bellard (In re Bellard)

Ruling: Domestic support agreement not referenced in divorce judgment was still nondischargeable.(Bankr. N.D. Tex.)
Issue: Exceptions to Discharge; Types of Debt Excepted; Domestic Support Obligations.
Holdings: [1]-Where debtor and his former wife had executed an agreement prior to engaging in an uncontested divorce proceeding whereby debtor agreed to pay a specific amount of support to his former wife for a specific term, but the agreement was not mentioned in the Florida court's judgment granting...

Peyrano v. Sotelo (In re Peyrano)

11 U.S.C.
Ruling: Debtor could recover attorneys’ fees incurred as a result of violation of discharge injunction.(Bankr. D. Okla.)
Issue: Effect of Discharge.
Holdings: [1]-Debtor could recover attorney fees as part of the actual damage he suffered as a result of creditor's violation of the discharge injunction, 11 U.S.C.S. § 524 ; [2]-Debtor could recover his reasonable costs to bring the action, even if the award of other actual damages was less than the amount...

Samson v. Franz (In re Franz)

Ruling: Funds derived from debtor’s mother’s estate following conversion to chapter 7 were propertyof the estate, should have been surrendered and were subject to turnover. (Bankr. D. Mont.)
Issue: Debtor's Duties; Required Acts; Surrender of Property and Recorded Information to Trustee.
Holdings: [1]-Debtor's one-third interest in funds derived from his deceased mother's probate estate following conversion of his case to Chapter 7 was property of his bankruptcy estate; [2]-Chapter 7 trustee had a duty under 11 U.S.C.S. § 704(a) to collect and reduce to money property of the estate; [3]-...

Continental Cas. Co. v. Carr (In re W.R. Grace & Co.)

11 U.S.C.
Ruling: State court asbestos claims against debtor’s insurer were barred by asbestos trust. (Bankr. D.Del.)
Issue: Effect of Discharge; Supplemental Injunctions in Chapter 11 Proceedings.
Holdings: [1]-Asbestos PI Trust, established pursuant to 11 U.S.C.S. § 524(g) , barred claims filed in state court against debtors' insurer based on exposure to debtors' products because the claims sought to hold the insurer indirectly liable for debtors' conduct and products and alleged that the insurer's...

Hutt v. Maryland Cas. Co. (In re W.R. Grace & Co.)

Ruling: Workers asbestos state court claims against insurer were subject to channeling injunctionexcept for workers compensation claims based on policies not referenced in the injunction.(Bankr. D. Del.)
Issue: Effect of Discharge; Supplemental Injunctions in Chapter 11 Proceedings; Validity and Enforceability; Generally and With Regard to Third Parties.
Holdings: [1]-Plaintiffs, workers with asbestos exposure injuries, were enjoined by the channeling injunction in this case from filing negligence and bad faith claims against an insurer in state court because it was previously decided that the insurer was a settled asbestos insurance company under the...

In re Kerher

11 U.S.C.
Ruling: Debt discharged over objection of creditor that had not filed a proof of claim or objected todebtor’s plan. (Bankr. D.S.D.)
Issue: Effect of Confirmation; Parties Bound by Confirmed Plan.
Holdings: [1]-The case trustee could not have included the claimant among the unsecured claim holders who received plan payments because the claimant was served with all the required notices, including the notice of the deadline to file a proof of claim and the notice of the deadline to object to the plan,...

First Fin. Bank of San Angelo v. Terrill Mfg. Co. (In re Terrill Mfg. Co.)

11 U.S.C.
Ruling: Property seized and applied by bank prior to petition date was not subject to turnover. (Bankr.N.D. Tex.)
Issue: Turnover of Property to the Estate.
Holdings: [1]-Turnover, under 11 U.S.C.S. § 542 , did not apply because the property that the debtor was seeking to have returned was not estate property because they were seized and applied by the bank before the bankruptcy was filed, and there was no evidence that the bank committed a stay violation by its...

Corzin v. DiGiammarino (In re Maglione)

11 U.S.C.
Ruling: Transfer to debtor’s mother on eve of divorce and less than two years prior to petition date wasavoidable. (Bankr. N.D. Ohio)
Issue: Fraudulent Transfers and Obligations.
Holdings: [1]-Transfer was avoidable under 11 U.S.C.S. § 548 because Trustee showed that debtor's transfer of $30,000 in cash to his mother, on the eve of the debtor's divorce, and less than two years prior to the petition date, was made with the actual intent to hinder, delay, and defraud his now ex-wife,...

Tomey v. Dizinno (In re Dizinno)

Ruling: Creditor sanctioned for filing nondischargeability proceeding that did not have any objectivebasis. (Bankr. M.D. Pa.)
Issue: Signing of Papers; Representations to the Court; Sanctions; Verification and Copies of Papers.
Holdings: [1]-While pro se creditor filed an amended adversary complaint against debtor seeking exception to discharge under 11 U.S.C.S. § 523(a)(2) , and such complaint did not have an objectively reasonable basis, given that the creditor was without counsel, special circumstances existed that would render...

In re Brown

11 U.S.C.
Ruling: Confirmation denied due to improper bifurcation of mortgage claim against mobile home thatwas worth more than the claim. (Bankr. E.D.N.C.)
Issue: Confirmation of Plan.
Holdings: [1]-A debtor's Chapter 13 bankruptcy plan could not be confirmed under 11 U.S.C.S. § 1325 because the plan valued a mobile home the debtor owned at $28,600 when the home was worth $45,552, and proposed to pay only part of a secured claim in the amount of $39,359 which a mortgage company held on the...

In re Health Diagnostic Lab., Inc.

Ruling: Settlement between liquidating trust and law firm approved. (Bankr. E.D. Va.)
Issue: Compromise and Arbitration.
Holdings: [1]-Pursuant to Fed. R. Bankr. P. 9019 , approval of a settlement agreement between the debtors' Liquidating Trust and a law firm was warranted because the uncontroverted evidence established that the settlement agreement was the hard-fought product of an intense, arms-length mediation process that...

Montalvo v. Vela (In re Montalvo)

28 U.S.C.
Ruling: Bankruptcy court declined to remand or abstain from hearing debtor’s adversary proceedingagainst contractor. (Bankr. S.D. Tex.)
Issue: Bankruptcy Cases and Proceedings.
Holdings: [1]-With respect to an adversary action brought by debtor against defendant, a contractor that had obtained a state court judgment against the debtor that ultimately led to execution sales of debtor's real property, equitable remand under 28 U.S.C.S. § 1452 was not warranted because the majority of...

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