Judge Somers

In re Lunt

Debtor, a beneficiary of a family trust, brought a motion alleging contempt by the trustee of the trust for violation of the discharge injunction in debtor's estate, pursuant to 11 U.S.C.S. § 524(a)(2). The trustee and the other two sibling-beneficiaries, asserted that the trustee's offset of a distribution of trust income to the debtor to satisfy debtor's obligation for interest on a promissory note. The parties moved for summary judgment.
Ruling: 
Trustee's offset of trust distribution to satisfy debtor's interest obligation on note did not violate discharge injunction.
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Consumer case opionion summary, case decided on August 31,2012, LexisNexis #1012-087

Redmond v. NCMIC Fin. Corp. (In re Brooke Corp.)

Chapter 7 trustee sought to avoid allegedly fraudulent transfers made by the debtors and to recover the value thereof from defendant, a finance corporation and lender (lender). As to one of the counts, the lender moved for summary judgment under Fed. R. Civ. P. 56, made applicable by Fed. R. Bankr. P. 7056, on the basis that it could not be liable within the meaning of 11 U.S.C.S. § 550(a)(1).
Ruling: 
Allegedly fraudulent transfer of operating expenses and loan payments to others could not be recovered from lender that allegedly benefitted.
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Commercial case opionion summary, case decided on March 13,2012, LexisNexis #0413-023

In re Townsend

Chapter 7 trustee objected to the debtors' assertion they were eligible to claim the federal exemptions provided by 11 U.S.C.S. § 522(d).
Ruling: 
Debtors who had not resided in current state for requisite period and no longer qualified for exemption in prior state of residence could claim federal exemption.
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Consumer case opionion summary, case decided on January 12,2012, LexisNexis #0612-086

Riederer v. John Dietrich Ins Inc. (In re Brooke Corp.)

Chapter 7 trustee sought to recover from defendants (insurance agencies and/or agents franchisees of debtor) agent statement balances and other similar obligations allegedly owed by the agents to the bankruptcy estates. Two of the defendants moved to dismiss for failure to state a claim pursuant to Fed. R. Bankr. P. 7012(b), which incorporated Fed. R. Civ. P. 12(b)(6).
Ruling: 
Trustee's proceeding to recover agent settlement balance from transferee denied as affiliation agreement had not been terminated.
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Commercial case opionion summary, case decided on October 26,2011, LexisNexis #1211-037

Nazar v. Carmichael (In re Carmichael)

Plaintiff trustee sought turnover and sale of a co-tenant's interest, by which the trustee sought to sell debtor's homestead in an effort to recover the value of an unperfected lien in debtor's manufactured home which was previously avoided and preserved for the benefit of the estate. Defendant debtor moved for summary judgment.
Ruling: 
Trustee could not sell manufactured home, in which debtor claimed homestead exemption, to realize value of avoided lien.
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Consumer case opionion summary, case decided on September 21,2010, LexisNexis #1010-080

In re Ortega

The chapter 7 debtors filed a motion to convert from chapter 7 to chapter 13 pursuant to 11 U.S.C.S. § 706(a), and an unsecured creditor objected based upon the good faith standard of established by the U.S. Supreme Court. The creditor had filed an adversary complaint against one debtor alleging the nondischargeability of liability under 11 U.S.C.S. § 523(a)(6) based on willful and malicious conduct of that debtor.
Ruling: 
Conversion to chapter 13 to avoid litigation on creditor's complaint granted in absence of bad faith.
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Consumer case opionion summary, case decided on August 17,2010, LexisNexis #0910-126

In re Starlite Houseboats Inc.

Three creditors of the debtor corporation filed an involuntary chapter 7 petition pursuant to 11 U.S.C.S. § 303. The debtor filed a motion to dismiss for lack of proper service under Kan. Stat. Ann. § 60-204 Fed. R. Civ. P. 4(h), and a motion for dismissal of the petition or abstention.
Ruling: 
Involuntary case dismissed due to improper service and bona fide dispute as to judgment claim of one petitioning creditor.
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Commercial case opionion summary, case decided on March 23,2010, LexisNexis #0610-073

In re Curry

A creditor timely filed two general unsecured claims in the amounts of $ 8,699 and $ 20,360 for the unpaid prepetition charges incurred on a debtor's credit card accounts. Before the court were debtors' objections to claim numbers 14 and 15, filed by the creditor.
Ruling: 
Objections to proofs of claim overruled as claims had sufficient detail and documentation.
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Consumer case opionion summary, case decided on March 16,2010, LexisNexis #0510-045

In re Dawes

Debtors filed a third amended chapter 12 plan and sought confirmation. The United States objected because the plan included an effective date that was approximately two and one- half years before the plan was filed.
Ruling: 
Plan could not be confirmed due to effective date that was two and one-half years before it was filed.
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Consumer case opionion summary, case decided on February 10,2010, LexisNexis #0410-134

Speth v. Postel (In re Koksal)

The chapter 7 trustee filed an adversary proceeding against defendant, a judgment creditor of the debtor, seeking to recover for the estate a cash supersedeas bond in the amount of $ 125,000 filed in a state court as being property of the estate under 11 U.S.C.S. § 541. The creditor moved for judgment on the pleadings, pursuant to Fed. R. Bankr. P. 7012(b).
Ruling: 
Supersedeas bond in state court case was property of the estate pending determination by state court.
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Consumer case opionion summary, case decided on February 03,2010, LexisNexis #0410-091

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