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In re Grunauer

Ruling
Trustee's objection to plan for failing to provide for turnover of tax refunds overruled.
Procedural posture

A chapter 13 trustee objected to confirmation of a debtor's plan on the grounds that she declined to endorse an addendum to a confirmation order agreeing to turn over income tax refunds during the term of the plan.

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Consumer opinion summary, case decided on June 09, 2010 , LexisNexis #0810-084

Webb v. Gathof (In re Gathof)

Ruling
Fraud judgment was nondischargeable but concurrent breach of contract damages were dischargeable.
Procedural posture

Creditors obtained a fraud judgment against debtors in state court, and both parties obtained breach of contract judgments. The creditors sought a determination that the net amount was nondischargeable under 11 U.S.C.S. § 523(a)(2). They were awarded partial summary judgment on the fraud judgment. Both parties filed motions for summary judgment with respect to the dischargeability of the creditors' breach of contract judgment.

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Consumer opinion summary, case decided on June 07, 2010 , LexisNexis #0910-015

In re Najafian

Ruling
Trustee allowed to abandon debtor's tort claim in exercise of sound business judgment.
Procedural posture

Debtor filed a petition under chapter 7 and a trustee was appointed to administer her bankruptcy estate. A successor trustee filed a motion seeking permission under 11 U.S.C.S. § 554(a) to abandon tort claims the debtor stated she had against a bank. The debtor opposed the motion.

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Consumer opinion summary, case decided on June 01, 2010 , LexisNexis #0910-023

In re Tran

Ruling
Plan provisionally confirmed pending filing and outcome of adversary proceeding to strip-off creditor's second deed of trust.
Procedural posture

Creditor, a federal credit union, objected to the confirmation of a modified chapter 13 plan filed by debtors, a husband and wife. The plan proposed the filing of a separate adversary proceedings to strip-off creditor's second deed of trust against debtors' residence.

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Consumer opinion summary, case decided on May 17, 2010 , LexisNexis #0810-112

In re OhPark

Ruling
Attorney ordered to disgorge excessive fees for services in two dismissed cases handled for debtor.
Procedural posture

A United States Trustee (UST) filed a motion to examine the reasonableness of the fees paid by a chapter 7 debtor to her attorney.

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Consumer opinion summary, case decided on May 12, 2010 , LexisNexis #0810-001

Capital One v. Najafian (In re Najafian)

Ruling
Stay was no longer in effect to bar enforcement of deed of trust once debtor received a discharge.
Procedural posture

Debtor filed a petition under chapter 7, and movant creditor filed a motion seeking relief under 11 U.S.C.S. § 362 from the stay that was imposed when the debtor declared bankruptcy so it could enforce a deed of trust the debtor executed on a condominium unit she owned. The debtor opposed the motion.

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Consumer opinion summary, case decided on May 05, 2010 , LexisNexis #0710-077

In re Brooks

Ruling
Debtor could reopen case in order to schedule legal malpractice action for possible abandonment by trustee.
Procedural posture

The chapter 7 debtors filed a motion pursuant to 11 U.S.C.S. § 350(b) to reopen their closed case so that they could file an amended schedule of assets listing a legal malpractice claim against the attorneys who represented them in their bankruptcy case, so that the trustee could then abandon that claim, thereby freeing them to prosecute it in state court for their own benefit. The former attorneys opposed the motion.

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Consumer opinion summary, case decided on April 27, 2010 , LexisNexis #0710-138

In re Tillett

Ruling
Creditor who did not receive notice of bankruptcy at its mailing address could not be sanctioned for violating stay.
Procedural posture

A chapter 7 debtor filed a motion to reopen her closed case pursuant to 11 U.S.C.S. § 350(b) in order to bring an action against a creditor for violation of the automatic stay by obtaining a default judgment and issuing garnishment process against the debtor's wages after the filing of the bankruptcy petition.

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Consumer opinion summary, case decided on April 26, 2010 , LexisNexis #0710-042

Badolato v. Badolato (In re Badolato)

Ruling
Judgment stemming from debtor's failure to comply with obligations under property settlement in divorce decree was nondischargeable.
Procedural posture

Debtor filed a voluntary petition for relief under chapter 7 and received a discharge of his dischargeable debts. Plaintiff ex-wife filed an adversary proceeding against the debtor to determine the dischargeability of her claim against the debtor.

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Consumer opinion summary, case decided on March 17, 2010 , LexisNexis #0610-016

HSBC Bank USA v. Gold (In re Taneja)

Ruling
Purported mortgage interest allegedly fraudulently released by debtor could be defeated by trustee.
Procedural posture

A creditor and alleged mortgagee of the debtor, filed an action to determine the validity of its claimed lien against the debtor's real property, and to impose a constructive trust against the sales proceeds held by the trustee. Defendant, the chapter 11 trustee, filed a motion to dismiss the complaint for failure to state a claim for relief.

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Consumer opinion summary, case decided on March 16, 2010 , LexisNexis #0610-097