§ 507

Walschmidt v. Bank of Am. (In re Wheeler)

Chapter 7 trustee filed an adversary proceeding against a secured creditor, pursuant to 11 U.S.C.S. § 544(a) to exercise his strong arm powers to bring the debtors' residence into the bankruptcy estate under 11 U.S.C.S. § 541. The parties filed cross motions for summary judgment.
Ruling: 
Trustee could not avoid deed of trust for which release was not recorded prior to petition date.
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Consumer case opionion summary, case decided on October 26,2012, LexisNexis #1112-125

Kerr v. Meadors (In re Knott)

After respondent ex-spouse filed a proof of claim arising from a state court judgment based on his overpayment of a domestic support obligation (DSO) to a Chapter 7 debtor, movant Trustee objected to the claim, contending that the overpayment was not a DSO and thus was not entitled to priority under 11 U.S.C.S. § 507(a)(1)(A).
Ruling: 
Judgment based on overpayment of domestic support obligation was itself a domestic support obligation.
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Consumer case opionion summary, case decided on October 22,2012, LexisNexis #1112-117

In re Fickling

At a hearing on confirmation of debtor's chapter 13 plan, the issue was whether a buyout obligation of the debtor and owed to creditor wife was a domestic support obligation as defined by 11 U.S.C.S. § 101(14A), entitled to priority treatment under 11 U.S.C.S. § 507(a)(1), or whether it was part of a property settlement between the two.
Ruling: 
Payments to former spouse intended as part of property settlement were not nondischargeable domestic support obligations.
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Consumer case opionion summary, case decided on October 02,2012, LexisNexis #1012-122

In re Netal Inc.

The IRS filed an application for approval of its super-priority administrative expense claim under 11 U.S.C.S. § 507(b). Two union benefit plans covering the chapter 7 debtor's employees objected to the application on the grounds that the debt owed to them for plan contributions that should have been made within 180 days prior to the bankruptcy filing took priority over the IRS's super-priority claim under 11 U.S.C.S. § 724(b).
Ruling: 
IRS was not entitled to superpriority administrative expense status for diminution claim where union benefits claim was superior.
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Commercial case opionion summary, case decided on September 26,2012, LexisNexis #1012-081

In re Hilliard

Creditor, the state Department of Labor & Industry Employment Relations Division, Uninsured Employers Fund (fund) filed a proof of claim pursuant to 11 U.S.C.S. § 507(a)(8)(C) and Fed. R. Bankr. P. 3001(f). Debtor, an uninsured employer, filed an objection to the proof of claim.
Ruling: 
Claim for unpaid workers' compensation assessment allowed as excise tax over debtor's objection.
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Consumer case opionion summary, case decided on September 26,2012, LexisNexis #1012-080

In re Mary Holder Agency Inc.

A creditor filed a motion to establish a superpriority administrative expense claim under 11 U.S.C.S. §§ 503(b) and 507(b).
Ruling: 
Creditor not entitled to superpriority administrative expense claim for replacement liens absent showing of decline in value of cash collateral.
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Commercial case opionion summary, case decided on September 24,2012, LexisNexis #1012-123

In re Paradis

Debtors filed a petition under chapter 13 of the Bankruptcy Code, and the Internal Revenue Service ("IRS") filed a secured claim and an unsecured claim against the debtors' bankruptcy estate. The debtors filed an objection to the IRS's unsecured claim and asked the court to confirm a plan they proposed that did not give the IRS's unsecured claim priority status. The parties submitted the issue on a stipulated record.
Ruling: 
IRS claim for taxes assessed more than three years before petition date could be treated as unsecured in plan.
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Consumer case opionion summary, case decided on September 10,2012, LexisNexis #1012-048

In re DeWitt Rehab. & Nursing Ctr. Inc.

A staffing service contended that a portion of its claim was entitled to priority status under 11 U.S.C.S. § 507(a)(5) as contributions to an employee benefit plan. The chapter 11 debtor filed a motion to expunge the priority portion of the claimant's proof of claim.
Ruling: 
Claim for third party payments to employee benefit plan not maintained by debtor was a general unsecured claim.
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Commercial case opionion summary, case decided on August 17,2012, LexisNexis #0912-043

International Tobacco Partners Ltd. V. United States Dept of Agric. (In re International Tobacco Partners Ltd.)

Plaintiff debtor filed a complaint against defendant, the U.S. Department of Agriculture (USDA), alleging, inter alia, that amounts owed by the debtor to USDA under the Fair and Equitable Tobacco Reform Act of 2004 (FETRA), 7 U.S.C.S. § 518 et seq., were not a tax, and, if the amounts owed were taxes, then they should be deemed excise taxes under 11 U.S.C.S. § 507(a)(8)(E).
Ruling: 
Assessments due under the Fair and Equitable Tobacco Reform Act of 2004 were excise taxes for which USDA was entitled to priority claim.
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Commercial case opionion summary, case decided on April 06,2012, LexisNexis #0512-011

Michigan Dept of Treasury v. Hight (In re Hight)

Michigan Department of Treasury objected to a protective proof-of-claim for an income tax debt filed on its behalf by debtor, who filed for bankruptcy in January 2009, before the return and payment for the taxes were due. A bankruptcy court overruled the objection, finding that the claim was permitted. The United States District Court for the Western District of Michigan at Grand Rapids affirmed. The Treasury appealed.
Ruling: 
Protective proof of claim filed by debtor for income tax debt owed to state was properly allowed.
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Consumer case opionion summary, case decided on March 05,2012, LexisNexis #0312-121

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