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Bailey v. Fry (In re Fry)

Ruling
Discharge denied due to debtor's failure to maintain records.
Procedural posture

Plaintiff, the chapter 7 trustee for a debtor that was a limited liability company (LLC), sued defendant, the managing member of and 50% owner of the LLC and a debtor in his own chapter 7 case, to deny him a discharge per 11 U.S.C.S. § 727(a) on the ground that his failure to maintain records from which the condition of the LLC could be determined afforded a basis to deny him a discharge in his own chapter 7.

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Consumer opinion summary, case decided on August 30, 2012 , LexisNexis #1212-095

In re Fehrenbacker

Ruling
Relief from stay denied where creditor could not establish possession of note.
Procedural posture

A creditor filed a motion for relief from stay pursuant to 11 U.S.C.S. § 362(d). Alternatively, the creditor alleged that the discharge received by the chapter 7 debtor terminated the stay under § 362(c) and rendered the motion moot.

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Consumer opinion summary, case decided on June 13, 2012 , LexisNexis #0812-107

In re South Station LLC

Ruling
Debtor's attorneys' fees disallowed due to failure to disclose payments from debtor's principal.
Procedural posture

Law firm representing a debtor filed an application for attorneys' fees and costs pursuant to 11 U.S.C.S. §§ 329 and 330 and Fed. R. Bankr. P. 2016. The chapter 7 trustee filed an objection to the application on the grounds that the law firm failed to comply with the disclosure requirements of Fed. R. Bankr. P. 2016.

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Commercial opinion summary, case decided on December 13, 2011 , LexisNexis #0112-040

In re Keyser

Ruling
Creditor's pursuit of in rem foreclosure remedy did not violate stay.
Procedural posture

Debtor asked the court to rule that a condominium owners association (COA) had violated the automatic stay imposed per 11 U.S.C.S. § 362 by pursuing foreclosure of debtor's interest in a condo unit and that damages were properly awarded under § 362(k). The court had previously granted relief from stay to COA to pursue a state court action for in rem foreclosure relief.

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Consumer opinion summary, case decided on December 12, 2011 , LexisNexis #0212-077

In re Colon

Ruling
Postpetition homeowners' association assessments were dischargeable and subject to stay.
Procedural posture

A creditor of chapter 13 debtors filed a motion for relief from stay under 11 U.S.C.S. § 362(d) or in the alternative, for a determination that post-petition homeowner's association (HOA) assessments were not subject to the automatic stay.

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Consumer opinion summary, case decided on September 30, 2011 , LexisNexis #1111-044

In re Harward

Ruling
Letter sent to debtor by creditor bank pursuant to court order and state law did not violate stay and was not grounds for sanctions.
Procedural posture

Chapter 7 debtors filed a motion against a bank for sanctions under 11 U.S.C.S. § 362(k) for violation of the automatic stay.

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Consumer opinion summary, case decided on August 25, 2011 , LexisNexis #0911-116

In re JL Bldg. LLC

Ruling
Trustee's motion for sale of property and assignment of leases granted.
Procedural posture

Chapter 7 trustee filed a motion seeking authority to sell certain property under 11 U.S.C.S. § 363(b)(1) and (f) and to assume the leases pertaining to that property and assign those leases to the buyer.

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Commercial opinion summary, case decided on June 24, 2011 , LexisNexis #0711-078

Official Committee of Unsecured Creditors v. Western United Life Assur. Co. (In re Tri-Valley Distrib. Inc.)

Ruling
Avoidance of transfers to lender denied on good faith grounds.
Procedural posture

All parties moved for summary judgment on claims in an adversary proceeding challenging, as fraudulent conveyances, transfers of interests in property to defendant life assurance company (Lender), which had financed transactions involving debtors, a non-filing affiliate thereof, and a third party. When the loan defaulted, Lender sold the property that comprised collateral, the proceeds of which were escrowed pending final judgment herein.

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Commercial opinion summary, case decided on June 16, 2011 , LexisNexis #0711-104

In re Xenerga Inc.

Ruling
Trustee could not settle claims of debtor's customers against debtor's insiders as the claims were not property of the estate.
Procedural posture

Before this bankruptcy case was filed, two of a debtor's dissatisfied customers sued the debtor and three insiders in state court alleging numerous causes of action arising from a breach of contract between the parties. The chapter 7 trustee sought approval to settle the customers' claims against the insiders for $80,000.

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Commercial opinion summary, case decided on May 24, 2011 , LexisNexis #0611-089

In re Dennett

Ruling
Settlement of debtor's claim under land repurchase agreement approved.
Procedural posture

A Chapter 7 trustee filed a motion pursuant to Fed. R. Bankr. P. 9019 to compromise and settle a claim that concerned litigation pending in state court involving a repurchase agreement for land. The debtor opposed the trustee's motion to compromise and filed a motion for abandonment pursuant to 11 U.S.C.S. § 554(a). Two creditors also opposed the trustee's motion.

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Consumer opinion summary, case decided on March 07, 2011 , LexisNexis #0411-060