§ 362(b)

Secrest v. Secrest (In re Secrest)

Creditor wife sought relief from the automatic stay, pursuant to 11 U.S.C.S. § 362(b)(2) or (d)(1), to pursue equitable distribution of the property owned with debtor husband, in a pending divorce case. The debtor and the chapter 7 trustee opposed her motion.
Ruling: 
Relief from stay granted to allow debtor's spouse equitable distribution provided no property was transferred out of the estate.
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Consumer case opionion summary, case decided on July 15,2011, LexisNexis #0811-075

Reedsburg Util. Commn v. Grede Foundries Inc. (In re Grede Foundries Inc.)

Appellant, a municipal utility, challenged a decision of the U. S. District Court for the Western District of Wisconsin, affirming a bankruptcy court judgment that the utility violated the automatic stay, 11 U.S.C.S. § 362, by sending delinquency notices to appellee debtor and reporting the delinquencies to the city.
Ruling: 
Utility's deficiency notices violated stay where utility did not have a prepetition interest in debtor's property.
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Commercial case opionion summary, case decided on July 13,2011, LexisNexis #0811-006

Valle v. Montgomery County (In re Valle)

Chapter 7 debtor filed an amended adversary complaint against defendant creditor county, asserting that the county's postpetition efforts to enforce parking citations and fines therefor, violated the automatic stay. The county argued that the fines were criminal in nature, and were excepted from the automatic stay under 11 U.S.C.S. § 362(b)(1). The parties filed cross-motions for summary judgment.
Ruling: 
Efforts to enforce parking tickets and fines were within police and regulatory powers exception to stay.
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Consumer case opionion summary, case decided on June 17,2011, LexisNexis #0811-007

Chizzali v. Gindi (In re Gindi)

Judgment creditor challenged a decision of the U.S. Bankruptcy Appellate Panel of the Tenth Circuit, which affirmed a bankruptcy court decision refusing to lift the automatic stay to permit further proceedings regarding two issues raised by the creditor in his appeals arising out of a lawsuit by the creditor against appellee debtor. The bankruptcy court also ruled that the stay did not apply to the debtor's separate appeal.
Ruling: 
Appeal of dismissal of contempt citation was not exempt from stay.
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Consumer case opionion summary, case decided on February 14,2011, LexisNexis #0311-005

In re Clifton

Debtor filed a motion to show cause why the automatic stay provision of 11 U.S.C.S. § 362(a) had not been violated by the Secretary of Labor due to a complaint filed by the Secretary against the debtor in federal court. Debtor also filed a motion seeking an injunction and sanctions against the Secretary.
Ruling: 
Secretary of Labor's complaint regarding debtor's ERISA violations was within police and regulatory powers exception to stay.
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Consumer case opionion summary, case decided on August 03,2010, LexisNexis #0910-107

In re Roth

Creditor, a law firm that had represented the debtor in nonbankruptcy matters pre-petition, filed a motion to dismiss the chapter 13 debtor's case and also objected to the confirmation of the chapter 13 plan. The creditor held an unsecured claim of $57,260.90 for unpaid legal fees.
Ruling: 
Retirement income and 401(k) loan repayments were not disposable income.
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Consumer case opionion summary, case decided on June 14,2010, LexisNexis #0910-074

In re St. Vincents Catholic Med. Ctrs.

In this bankruptcy case the debtors, a hospital and group of clinics, sought to close the hospital. A group of plaintiffs (state court plaintiffs) filed a state court action against the state health department seeking to stop the hospital closure. Before the bankruptcy court, the state plaintiffs sought to lift the stay under 11 U.S.C.S. § 362 and filed an objection to the final closure order.
Ruling: 
Taxpayer plaintiffs in state court action to prevent closing of debtor's hospital lacked standing to seek relief from stay.
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Commercial case opionion summary, case decided on May 14,2010, LexisNexis #0810-002

In re Rios

In this chapter 11 case, the debtors filed an adversary proceeding against defendant creditor primarily with respect to the creditor's claim pertaining to mortgage liens and the creditor's contention that such liens were excepted from the automatic stay under 11 U.S.C.S. § 362(b)(3). The debtors filed a motion for summary judgment and the creditor filed a cross motion for summary judgment.
Ruling: 
Unrecorded mortgage liens were exempt from stay due to relation back mechanism of Puerto Rican law.
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Consumer case opionion summary, case decided on April 07,2010, LexisNexis #0710-004

In re Kearns

Debtor filed a Motion for Determination of Contempt, in which he alleged one of his creditors violated the automatic stay in effect in his bankruptcy case. Debtor sought recovery of damages from the creditor as a sanction pursuant to 11 U.S.C.S. §§ 362(k)(1), 105(a). The creditor objected to the motion.
Ruling: 
Presentment of debtor's post-dated check did not violate stay.
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Consumer case opionion summary, case decided on March 30,2010, LexisNexis #0610-108

In re Powers

A chapter 13 debtor filed a second emergency motion for an order to show cause why sanctions should not be granted against his ex-wife and her divorce attorney for alleged violations of the automatic stay. The debtor alleged that they violated the stay by seeking to enforce provisions of a divorce decree in state court.
Ruling: 
Actions to collect domestic support obligation are not subject to automatic stay.
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Consumer case opionion summary, case decided on March 12,2010, LexisNexis #0610-004

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