Judge Cornish

Garland v. United States (In re Garland)

Plaintiff, the United States Trustee, sought a denial of a chapter 7 debtor's discharge pursuant to 11 U.S.C.S. § 727(a)(2), § 727(a)(4)(A), and § 727(a)(5). The debtor filed a complaint against the Internal Revenue Service (IRS) asking that a judgment be entered under 11 U.S.C.S. § 523(a)(1) and seeking a determination that certain federal income tax liabilities be discharged in his chapter 7 bankruptcy.
Ruling: 
Attorney debtor's ongoing concealment of property resulted in denial of discharge.
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Consumer case opionion summary, case decided on March 31,2008, LexisNexis #0408-135

Jim Wynn Inc. v. Ratliff (In re Ratliff)

Plaintiff, defendant debtor's former employer, filed an adversary proceeding against the debtor seeking a determination that its debt was nondischargeable pursuant to 11 U.S.C.S. § 523(a)(4) for alleged embezzlement of corporate funds.
Ruling: 
Debtor office manager's embezzlement from employer resulted in nondischargeable debt.
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Consumer case opionion summary, case decided on March 07,2008, LexisNexis #0408-112

Miller v. Martin (In re Gross)

In an earlier proceeding the court entered judgment in favor of plaintiff trustee against defendant transferee, in the amount of $13,806, plus interest, and avoiding a mortgage to the transferee on the grounds that the transactions were preferential, pursuant to 11 U.S.C. § 547. The trustee filed a motion for interest, and to amend the judgment to include costs and prejudgment interest from the date of demand of disgorgement.
Ruling: 
Trustee awarded costs on avoidance of portion of prepetition transfer declared preferential.
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Consumer case opionion summary, case decided on January 02,2008, LexisNexis #0208-105

In re McCurtain Mun. Auth.

Debtor, a public trust created under Oklahoma law, filed a petition for relief under chapter 9. A creditor filed a motion to dismiss the debtor's petition, claiming that the debtor was not entitled to relief because it failed to comply with 11 U.S.C. §§ 109(c) and 921(c).
Ruling: 
Public trust that was insolvent and failed in good faith attempt to settle disputes was eligible for relief under chapter 9.
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Commercial case opionion summary, case decided on December 04,2007, LexisNexis #0108-036

Goss v. Martin (In re Goss)

Plaintiff chapter 7 trustee filed a complaint against defendant creditor, seeking to avoid a payment of 13,806.25 to the creditor and a $30,000 mortgage given in favor of the creditor as preferential transfers under 11 U.S.C. §§ 547(b) and 548.
Ruling: 
Payment and mortgage granted to creditor within 90 days of filing from trust controlled by debtor was preferential.
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Consumer case opionion summary, case decided on September 25,2007, LexisNexis #1107-066

In re Wake

The United States Trustee ("UST") moved to dismiss the debtor's chapter 7 case pursuant to 11 U.S.C. § 707(b) on the grounds that the filing constituted an abuse of the provisions of chapter 7.
Ruling: 
Case ordered converted or dismissed where debtors could fund chapter 13 plan if second car payment was eliminated.
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Consumer case opionion summary, case decided on September 07,2007, LexisNexis #1007-084

Carl Zeiss Meditec AG v. Anstine (In re U.S. Med. Inc.)

Appellant, a creditor, sought review of a decision of the Bankruptcy Court for the District of Colorado, entered in favor of appellee, the chapter 7 trustee, after ruling that the creditor was a non-statutory insider to the debtor. The trustee was allowed to avoid certain transfers from the debtor to the creditor, which were found to be preferential pursuant to 11 U.S.C. §§ 547(b)(4)(B) and 550(a)(1).
Ruling: 
Avoidance of transfers reversed where creditor had close, but not insider, relationship with debtor.
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Commercial case opionion summary, case decided on June 12,2007, LexisNexis #1007-068

Busch v. Hancock (In re Busch)

Appellant chapter 7 debtor challenged a decision of the Bankruptcy Court for the District of Utah, which denied the debtor's motion for relief from judgment under Fed. R. Bankr. P. 7052 and Fed. R. Bankr. P. 9024 after the bankruptcy court held that an obligation owed to appellee, the debtor's ex-wife, was nondischargeable and awarded attorney's fees to the ex-wife's attorney in connection with state and federal litigation.
Ruling: 
Debtor's obligation to pay second mortgage for former spouse was in the nature of support and nondischargeable.
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Lawrence Athletic Club v. Scroggin (In re Scroggin)

Appellant creditor sought review of a judgment of the Bankruptcy Court for the District of Kansas, which awarded appellee debtor damages, attorney fees, and sanctions resulting from the creditor's willful violation of the automatic stay under 11 U.S.C. § 362(h). The debtor filed a motion to dismiss the appeal as moot.
Ruling: 
Bankruptcy court properly held that creditor's failure to take affirmative action to stop wage garnishment violated stay.
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Smith v. Bridgman

Creditor filed an adversary proceeding against chapter 7 debtor, seeking a determination that debt owed to her was nondischargeable under 11 U.S.C. § 523(a)(5), (6) and (15).
Ruling: 
Attorneys' fees awarded in action finding no common-law marriage existed between debtor and creditor was dischargeable.
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