Northern District

In re Makres

The debtors filed for relief under chapter 7. The United States Trustee filed a motion to dismiss pursuant to 11 U.S.C. § 707(b)(2). The court issued findings of fact and conclusions of law.
Ruling: 
Presumption of abuse did not arise where debtor properly completed Form B22A means test.
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Consumer case opionion summary, case decided on December 07,2007, LexisNexis #0108-051

Wieland v. Harvey (In re Harvey)

Plaintiff United States Trustee ("UST") objected to the discharge of defendants, a debtor and his co-debtor, pursuant to 11 U.S.C. § 727(a)(4)(A).
Ruling: 
Debtor's failure to disclose assets and material omissions justified denial of discharge but co- debtor spouse was granted a discharge.
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Consumer case opionion summary, case decided on October 16,2007, LexisNexis #1207-034

In re Callahan

Plaintiff trustee sought summary judgment that defendant vendor's repossession of inventory in the possession of debtors was an avoidable preference under 11 U.S.C. § 547(b). Defendant cross-moved for summary judgment on a claim that the inventory, which debtors bought from defendant in connection with their lease of his convenience store, was not debtors'"property" under section 547 and that its value was less than the minimum required therein.
Ruling: 
Store inventory purchased from lessor was property of the estate.
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Commercial case opionion summary, case decided on October 11,2007, LexisNexis #1107-078

Davis v. Hoserman (In re Hosterman)

Plaintiff creditor, the former wife of defendant debtor, brought an adversary proceeding to determine whether a hold harmless provision in the parties'decree of divorce, whereby the debtor agreed to hold the former wife harmless as to various credit card debts, constituted a nondischargable obligation of the debtor within the meaning of 11 U.S.C. § 523(a)(15).
Ruling: 
Hold harmless obligation contained in divorce decree was nondischargeable due to BAPCA elimination of "balancing test."
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Consumer case opionion summary, case decided on October 09,2007, LexisNexis #1107-077

Custom Heating & Air Inc. v. Andress (In re Andress)

Plaintiff creditor filed an adversary proceeding against defendant debtor seeking a determination that its debt was nondischargeable pursuant to 11 U.S.C. § 523. The district court remanded the matter and instructed the bankruptcy court to reassess the damages attributable to loss of goodwill by the creditor as a result of the debtor's willful and malicious conduct.
Ruling: 
Contractual penalty for debtor's violation of non-compete covenant was nondischargeable.
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In re Brown

Before the court was the issue of whether fees paid to the attorney for chapter 12 debtors should be approved postpayment.
Ruling: 
Attorney for debtors in dismissed chapter 12 cases ordered to disgorge fees due to failure to filed application or disclose agreement.
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In re Reynolds

A chapter 13 trustee requested dismissal of the bankruptcy case due to the debtor's failure to timely file his pay stubs, pursuant to 11 U.S.C. § 521(a)(1)(B)(iv).
Ruling: 
Dismissal for failure to file payment advices not required given other evidence of payment received.
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In re Quick

Two chapter 13 cases came before the court on a creditor's objection to confirmation of debtors'chapter 13 plans.
Ruling: 
Surrender of vehicles to secured creditor resulted in full satisfaction of debt pursuant to "hanging paragraph"precluding claim for deficiency.
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In re Quarles

On motion of appellee trustee, a debtor was allowed to reopen her bankruptcy case to amend her schedules to include an omitted medical malpractice action against appellants, underlying defendants. Appellants were not notified of the motion and moved to vacate the order allowing the case to be reopened. The motion was denied. Appellants challenged the bankruptcy court's denial. A magistrate recommended denying their appeal. Appellants objected.
Ruling: 
Defendants in debtor's medical malpractice action lacked standing to appeal reopening of case to amend schedules and include claim.
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In re Cloud

The court noted that 11 U.S.C. § 521(i)(1) provided for the automatic dismissal of voluntary individual cases effective on the 46th day after the date of the filing of the petition if the documents described in 11 U.S.C. § 521(a)(1) were not filed within 45 days after the petition date. The court noted that it had no discretion to enlarge the time limitations of 11 U.S.C. § 521(i)(1) after the expiration of those time limitations. The husband debtor failed to timely file copies of all his payment advices as required by 11 U.S.C. § 521(a)(1)(B)(iv). As a result, the bankruptcy case as to the husband debtor was automatically dismissed by operation of statute. The wife debtor declared, under penalty of perjury, that she did not receive any payment advices or other evidence of payment from any employer at any point during the 60 days before the petition date. Accordingly, the chapter 13 case as to the wife debtor was not dismissed.
Ruling: 
Case dismissed due to debtors' failure to timely file required copies of payment advices.
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