Judge Somers

Sunflower Bank N.A. v. Otte (In re Otte)

Adversary plaintiff bank sought to have individual debtor's guaranty obligation be held nondischargeable under 11 U.S.C. § 523(a)(2)(B) for defaulting borrower corporation's loans. The bank claimed that the debtor had fraudulently reported the borrower's inventory. The court previously ruled the debt was not one for fraud or defalcation while acting in a fiduciary capacity that would be excepted from discharge under 11 U.S.C. § 523(a)(4).
Ruling: 
Obligation to bank was not excepted from discharge since bank failed to show an intent to defraud by debtor.
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In re Rowe

A chapter 7 matter was before the court on a Motion to Compel Turnover of Vehicle filed by movant creditor and debtor's objection thereto.
Ruling: 
"Fourth option" or ride through, allowing non-defaulting debtor to retain collateral and continue payments was not eliminated by BAPCPA in Kansas due to provisions of state law.
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In re Hensley

Putative creditor, the U.S. Department of Education, sought to collect an alleged student loan balance from debtor, who had received a discharge following completion of her chapter 13 plan. The government argued that the discharge judgment was void and it was entitled to relief under Fed. R. Civ. P. 60(b)(4), because it was given insufficient notice of the objection to its claim.
Ruling: 
Court deemed that notice of claim objection was sufficient since the notice was mailed to the government creditor's notice address state in its proof of claim.
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In re Mattern

The chapter 7 trustee filed a motion to determine estate property and for turnover of any trust or inheritance. The primary issue was whether income and/or property to which the debtor had an expectancy on the date of filing and to which he became entitled upon the death of his father, less than 180 days after filing, pursuant to his father's revocable trust and pour over will was property of the estate under 11 U.S.C. § 541(a)(1) or (a)(5).
Ruling: 
The debtor's prefiling contingent beneficiary interest in the debtor's father's revocable inter vivos trust and pour over will was excluded from property of the estate.
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Morris v. Delgado (In re Alton)

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditor seeking to avoid an alleged transfer from the debtor as preferential. The debtor granted a security interest in a vehicle to the creditor and subsequently surrendered the vehicle to the creditor.
Ruling: 
Debtor's granting of a security interest in a vehicle to a creditor to secure a loan was deemed a preferential transfer since the lien was not timely perfected and no exceptions to the preferential transfer rule applied.
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Redmond v. Lentz & Clark P.A. (In re Wagers)

Plaintiff bankruptcy trustee brought an adversary proceeding against defendants, chapter 7 debtors and the law firm representing the debtors, alleging that the bankruptcy estate was entitled to the debtors'tax refunds which the debtors assigned to the firm prepetition to secure the firm's prepetition and postpetition services. The parties cross-moved for summary judgment.
Ruling: 
Debtors'tax refunds were not estate property since the debtors had assigned prepetition the refunds to secure a law firm's prepetition and postpetition services and thus only held a revisionary, not ownership, interest in the refunds.
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Morris v. St. John Natl Bank (In re Haberman)

Plaintiff trustee sued defendant bank, seeking to avoid the bank's lien on the debtors'car. After the debtor paid off the balance the debtor owed, the bankruptcy court determined that the bank's lien was unperfected and the trustee could avoid it. The trustee then sought a determination in the postpetition payments.
Ruling: 
Bank was ordered to turn over to the trustee an amount equal to the value of a car as of the day the debtors filed for bankruptcy, leaving the bank with a general unsecured claim against the bankruptcy estate for the same amount.
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In re Rafter Seven Ranches L.P.

The instant dispute arose out of four prepetition leases between the creditor, as lessor, and the debtor, as lessee, for the lease of four irrigation sprinkler systems. The debtor filed an objection to the creditor's claim. The creditor filed a motion for an order requiring the debtor to assume or reject the leases pursuant to 11 U.S.C. § 365(d)(2).
Ruling: 
Creditor was denied an order requiring the debtor to assume or reject the leases since the leases were terminated prepetition, but the creditor was permitted to claim rental payments on the leased sprinkler systems.
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In re Schmidt

Debtors filed for bankruptcy relief under chapter 13. The creditors filed two motions to dismiss the petition and a motion to show cause why the bankruptcy proceeding should not be dismissed. The creditors contended that the debtors were not eligible for chapter 13 relief, pursuant to 11 U.S.C. § 109(e), and that the debtors did not file in good faith.
Ruling: 
Debtors'chapter 13 case was dismissed since they failed to show they had sufficient income to fund a plan and because their noncontingent, liquidated, unsecured debts exceeded the statutory limit.
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Morris v. Boeing Wichita Credit Union (In re Hicks)

Plaintiff, a chapter 7 trustee, brought an adversary proceeding against defendants, the debtors and their creditor, to avoid a lien pursuant to 11 U.S.C. § 544(a)(2). The creditor filed a third party complaint against third-party defendant, the State of Kansas Department of Revenue ("KDOR"), in the event that the trustee prevailed on his claim. The matter was before the court on a stipulation of facts and briefs of the parties.
Ruling: 
Trustee was granted motion to avoid creditor's lien since the certificate of title did not reflect the lien.
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