Judge Somers

In re Daniel

The chapter 13 trustee objected to a plan proposed by debtor on the ground that it was proposed that the plan have an 18-month duration but no payments to unsecured creditors were proposed. At issue was whether such a plan was properly proposed where, as here, the debtor was a below-median income earner and whether it complied with 11 U.S.C. § 1325(b)(1)(A) or (B).
Ruling: 
Plan proposed by below median income earner was not confirmable as calling for termination in less than 36 months without dividend to unsecured creditors.
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Blond v. Marsh (In re Marsh)

Creditor objected pursuant to 11 U.S.C. § 523(a)(5) to the discharge of a judgment for attorney's fees against chapter 7 debtor entered in a post-divorce custody proceeding.
Ruling: 
Award of former spouse's attorneys'fees in post-dissolution custody proceeding was in the nature of support and nondischargeable.
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In re Williams

A debtor filed a motion, pursuant to 11 U.S.C. § 706, to convert his case from chapter 7 to chapter 13. A creditor objected on the ground that the motion was filed in bad faith in order to avoid a possible judgment in the creditor's favor in dischargeability litigation.
Ruling: 
Chapter 7 debtor meeting eligibility requirements was entitled to convert to chapter 13 regardless of allegations of bad faith.
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In re Agnew

The debtors petitioned for bankruptcy relief under chapter 7. The debtors claimed a homestead exemption on property that the debtors had acquired from the mother of one of the debtors in exchange for other non-exempt agricultural property. The trustee objected to the homestead exemption under 11 U.S.C. § 522(o)(4).
Ruling: 
Homestead exemption allowed over trustee's objection absent showing that debtors acquired property with intent to hinder, delay or defraud creditors.
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In re Heck

Pending decision following a hearing in debtor's chapter 13 matter was the following: (1) a creditor's (bank's) motion to re-convert the case to chapter 7; (2) debtor's request for confirmation of her amended plan; and (3) her boyfriend's motion for a determination whether an engagement ring was property of debtor's bankruptcy estate.
Ruling: 
Ring from debtor's broken engagement was not property of the estate and could not be liquidated upon conversion to chapter 7.
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In re Garstecki

Judgment creditor bank raised objections to the debtor's claim of homestead and vehicle exemptions under Kan. Stat. Ann. §§ 60-2301 and 60-2304(c), and debtor's related motion to avoid the creditor's lien under 11 U.S.C. § 522(f)(1)(A). A guardian and a conservator had been appointed for debtor, who had been moved for health reasons from his residence to a nursing home.
Ruling: 
Debtor placed in nursing home after filing date could claim homestead exemption in former residence.
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In re Lewis

Debtors proposed a chapter 13 plan under which they would have paid the creditor the value of a van they purchased for their daughter as determined by 11 U.S.C. § 506(a), with the balance of the loan treated as a general unsecured claim. The creditor objected to the plan, arguing that the debtors had to pay the full amount of the debt. The creditor filed a motion for stay relief.
Ruling: 
Plan was not confirmed since debtors did not propose it in good faith where only personal benefit for debtors was to secure van for their adult daughter.
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Ouellette v. Ouellette (In re Ouellette)

Plaintiff U.S. trustee sued defendant chapter 7 debtors, seeking to revoke discharge pursuant to 11 U.S.C. § 727(d)(1) due to an alleged failure to disclose significant losses relating to one debtor's gambling or to disclose the transfer of an interest in real estate and a home to one debtor's mother two months prior to filing. The trustee moved for summary judgment.
Ruling: 
Trustee's motion for summary judgment seeking to revoke debtors' discharge based on alleged fraud was denied since disputed issues of fact regarding debtor's intent existed.
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In re Torline

Debtor husband filed an objection to a proof of claim filed by creditor wife, for $607,504, plus interest for pre-divorce joint obligations of the parties. The wife alleged she had paid a third party creditor to protect her own collateral. Debtor also moved to discharge an indebtedness to creditor wife's father.
Ruling: 
Claims by debtor's former spouse for pre-divorce obligations allowed to the extent properly filed.
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Burghart v. Douglas County (In re Burghart)

Plaintiff debtor filed an adversary proceeding against defendant state officials pursuant to 11 U.S.C. § 523(a)(7), seeking a ruling that his obligation on an order of restitution entered as a condition of probation in a state court criminal case was dischargeable. Defendants moved to dismiss pursuant to Fed. R. Bankr. P. 12 and Fed. R. Civ. P. 12(b)(1) and 12(b)(6).
Ruling: 
Order of restitution was excepted from discharge since under state law restitution was penal in nature.
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