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middle district of alabama

In re Smith

Ruling
Case dismissed as debtor kept and spent workers' compensation suit proceeds instead of turning them over to the trustee as called for in plan.
Issue(s)
Should case be dismissed due to debtor's conversion of proceeds from workers' compensation litigation to his own use, contrary to the terms of his confirmed chapter 13 plan?

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Consumer opinion summary, case decided on July 16, 2015 , LexisNexis #0815-064

White v. First Fin. LLC (In re White)

Ruling
Inducement of debtor to execute promissory note that included amount of original indebtedness violated the discharge injunction.
Issue(s)
Whether there is a violation of the discharge injunction when a creditor induces a borrower to execute a promissory note that includes a discharged indebtedness as a portion of its consideration.

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Consumer opinion summary, case decided on June 26, 2015 , LexisNexis #0715-088

Maddox v. Capital One N.A. (In re Maddox)

Ruling
Complaint in proceeding seeking damages for creditor's violation of discharge injunction stated a valid claim where creditor clearly sought to collect discharged debt personally from debtor.
Issue(s)
Whether a complaint alleging a violation of the discharge injunction that arose out of the filing of a fully secured proof of claim by a nonrecourse secured creditor, when that creditor had not repossessed its collateral after five years and had expressly reserved the right to seek a discharged deficiency balance, stated a claim for relief which survived a Fed. R. Civ. P. 12(b)(6) motion to dismiss.

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Consumer opinion summary, case decided on May 15, 2015 , LexisNexis #0615-057

Critten v. Quantum3 Grp. LLC (In re Critten)

Ruling
Debtor had no private right of action for damages due to creditor's failure to comply with Rule 3001.
Issue(s)
Could debtor bring a private right of action against creditor whose claim was disallowed due to failure to comply with Rule 3001?

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Consumer opinion summary, case decided on April 10, 2015 , LexisNexis #0515-033

Hudson v. PrimeSouth Bank (In re Hudson)

Ruling
Creditor did not violate stay by not withdrawing claim after payment by guarantor as payments were applied to a debt of the guarantor.
Issue(s)
Did creditor violate the automatic stay by not withdrawing its proof of claim after receiving payment from guarantor?

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Consumer opinion summary, case decided on April 09, 2015 , LexisNexis #0515-006

Williams v. Resurgent Capital Servs. L.P. (In re Williams)

Ruling
Statute of limitations for debtor's action under the Fair Debt Collection Practices Act began to run on the date creditor filed its stale proof of claim, so that debtor's proceeding filed more than one year later was time-barred.
Issue(s)
Should debtor's Fair Debt Collection Practices Act proceeding be dismissed as untimely?

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Consumer opinion summary, case decided on April 02, 2015 , LexisNexis #0615-120

Saggus v. Saggus

Ruling
Debt to former spouse was not a nondischargeable domestic support obligation but a property settlement nor was it nondischargeable on grounds of fraud.
Issue(s)
Was debt owed to former spouse nondischargeable as a domestic support obligation or as resulting from false pretenses and a materially false statement?

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Consumer opinion summary, case decided on March 20, 2015 , LexisNexis #0415-048

Listecki v. Official Comm. of Unsecured Creditors

Ruling
The First Amendment and the Religious Freedom Restoration Act did not bar proceeding for avoidance of transfer by Archdiocese of Milwaukee to cemetery trust.
Issue(s)
Did the bankruptcy court err in holding that actions of the official committee of unsecured creditors in seeking avoidance of transfer by debtor Archdiocese of Milwaukee to a cemetery trust were barred by application of the First Amendment and the Religious Freedom Restoration Act?

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on March 09, 2015 , LexisNexis #0415-061

Owens v. KHEAA (In re Owens)

Ruling
Student loan debts were nondischargeable where debtors had not made a good faith effort to repay.
Issue(s)
Were debtors entitled to a discharge of their student loan debts where they had made only four payments in 15 years?

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Consumer opinion summary, case decided on January 22, 2015 , LexisNexis #0215-090

Owens v. KHEAA (In re Owens)

Ruling
Student loan debts were nondischargeable where debtors had not made a good faith effort to repay.
Issue(s)
Were debtors entitled to a discharge of their student loan debts where they had made only four payments in 15 years?

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Consumer opinion summary, case decided on January 22, 2015 , LexisNexis #0215-090