- 11 U.S.C.
Peterson v. United States BankShares Inc. (In re Peterson)
Jan
13
2011
Ruling
Second lien deed of trust secured by minimal equity could not be stripped off.
Procedural posture
This was an action by plaintiff, a chapter 13 debtor, to strip off defendant bank's second-lien deed of trust as wholly unsecured. The matter was pending judgment.
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Court
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In re Cryptek Inc.
Dec
21
2010
Ruling
Debtor's law firm ordered to disgorge prepetition fees paid by debtor in possession postpetition without bankruptcy court authorization.
Procedural posture
After a case was converted from Chapter 11 to Chapter 7, the Chapter 7 trustee and administrative expense claimants filed a motion to require the law firm that represented the debtor-in-possession to disgorge about $35,000 of the nearly $163,000 in approved fees and expenses that were paid to it. The trustee claimed that disgorgement was necessary to achieve equality of distribution among the Chapter 11 administrative claimants.
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Court
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- 11 U.S.C.
Swift Fin. Corp. v. Matera (In re Matera)
Dec
08
2010
Ruling
Representations in debtor's oral responses into creditor lender's computer database did not constitute a "written statement" and were not grounds for nondischargeability.
Procedural posture
Defendant debtor filed a motion for judgment as a matter of law in plaintiff creditor's action, which alleged that debt owed to it by the debtor was nondischargeable under 11 U.S.C.S. § 523(a)(2)(B).
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Court
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In re Merrifield Town Ctr. Ltd. Pship
Dec
03
2010
Ruling
Attorneys' fees awarded to debtor in involuntary petition that was dismissed as filed by creditors with claims subject to bona fide dispute.
Procedural posture
The court reopened proceedings on the debtor's previously granted motion to dismiss the involuntary petition, and the debtor's motion for attorney's fees and sanctions, pursuant to 11 U.S.C.S. § 303(i) and Fed. R. Bankr. P. 9011(b), against the newly-added petitioning creditors and their attorneys.
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Court
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Williams v. Montclair Prop. Owner Assn (In re Cook)
Nov
10
2010
Ruling
Chapter 13 debtor could strip off homeowners' association liens on property in which there was no equity.
Procedural posture
Chapter 13 debtors filed a complaint against defendant creditor seeking to strip off liens against their residence for unpaid homeowners association assessments pursuant to 11 U.S.C.S. § 506(d) on the ground that there was no equity in the property to which the liens could attach. The debtors moved for summary judgment.
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Court
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SJM Props. v. Korfonta (In re Korfonta)
Oct
26
2010
Ruling
Debtor personally liable for deposits paid to debtor's company to construct house that was never conveyed to creditor.
Procedural posture
Creditor brought an action against defendant debtor claiming that the debtor was personally liable for deposits paid to the debtor's company to construct houses that the company never conveyed to her, and that the debtor's liability was nondischargeable under 11 U.S.C.S. § 523(a) on the ground either of fiduciary defalcation or conversion.
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Court
:
- 11 U.S.C.
United States Trustee v. Loussedes (In re Loussedes)
Sep
09
2010
Ruling
Discharge denied due to debtors' failure to report payment made to creditor and omission of rental property.
Procedural posture
After a random audit of the Chapter 7 case filed by debtors, a married couple, revealed asset dispositions and other transactions that the U.S. Trustee (UST) deemed material, the UST filed a complaint to deny a discharge to debtors based on 11 U.S.C.S. § 727(a)(4)(A). At issue was whether they failed to provide complete, truthful, and reliable information and did so to a degree that was sufficient to support a finding that they did so willfully.
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Court
:
- 11 U.S.C.
In re Haney
Aug
24
2010
Ruling
Confirmation denied due to failure to pay priority claims resulting from debtor's divorce in full.
Procedural posture
A debtor filed an amended plan for confirmation. The debtor's former wife filed an objection to confirmation of the amended plan, challenging the failure of the plan to pay priority claims in full. The objection also resurrected a previous assertion that the debtor's chapter 13 case was filed in bad faith solely to stymie enforcement of a final divorce decree.
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Court
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- 11 U.S.C.
Marina Dist. Dev. Co. LLC v. Ridge (In re Ridge)
Aug
24
2010
Ruling
Gambling debt based on "markers" for $250 thousand was dischargeable.
Procedural posture
Plaintiff, owner of a hotel and casino (creditor), filed a complaint against defendant Chapter 7 debtor to determine the dischargeability of a $250,000 gambling debt incurred by the debtor when he was issued chips in exchange for "markers" in that amount while playing blackjack at the casino. The creditor contended that the debt was not dischargeable under 11 U.S.C.S. § 523(a)(2).
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Court
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In re Miller
Jun
30
2010
Ruling
Unsubstantiated allegations of decrease in debtor's income did not create "special circumstances" to rebut presumption of abuse.
Procedural posture
Debtor's chapter 7 matter came before the court on the Bankruptcy Administrator's Motion to Dismiss or in the Alternative Convert to Chapter 13 with the Debtor's Consent, Pursuant to 11 U.S.C.S. § 707(b)(1), (2) and (3) based upon presumption of abuse and totality of the circumstances.
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Court
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