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northern district of alabama

Hollingsworth v. Option One Mortg. Corp. (In re Hollingsworth)

Ruling
Mortgagee's failure to disclose small charges in proofs of claim did not render claims objectionable.
Procedural posture

Plaintiffs, chapter 13 debtors, filed an adversary complaint in their second bankruptcy case, asserting that, while they agreed to make monthly payments on their arrearage to defendant mortgagee pursuant to 11 U.S.C.S. § 1322(b)(5), certain charges the mortgagee made after their first petition was filed were improper and violated 11 U.S.C.S. §§ 502, 506(b), and Fed. R. Bankr. P. 3001 or 2016(a).

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Consumer opinion summary, case decided on September 25, 2012 , LexisNexis #1012-075

Timmons v. Rose Acceptance Inc. (In re Timmons)

Ruling
Debtor granted temporary relief from order allowing foreclosure to proceed due to improved circumstances.
Procedural posture

Plaintiff chapter 13 debtor filed an adversary proceeding against defendant creditor and sought an order restraining the creditor from selling his home in a foreclosure sale. The court held a hearing on the debtor's motion.

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Consumer opinion summary, case decided on September 20, 2012 , LexisNexis #1012-115

Ashley v. University of Ala. Health Servs. Found. PC (In re Ashley)

Ruling
Actual and punitive damages awarded where creditor sought to collect debt in total and complete disregard for discharge injunction.
Procedural posture

This adversary proceeding alleging violation of the discharge injunction, 11 U.S.C.S. § 524(a)(2), came before the court for a hearing to prove damages following entry of a Default Judgment in favor of plaintiff debtor and against defendant creditor.

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Consumer opinion summary, case decided on September 06, 2012 , LexisNexis #1012-021

In re Williams

Ruling
Relief from stay granted to allow creditor to proceed against jointly owned property in absence of co-debtor stay.
Procedural posture

Pursuant to 11 U.S.C.S. § 362(d), a creditor filed a motion to lift the stay on real property that was owned by a chapter 11 debtor as a joint tenant with right of survivorship.

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Consumer opinion summary, case decided on July 30, 2012 , LexisNexis #0812-074

In re Edwards

Ruling
Case ordered converted to chapter 13 or dismissed for abuse due to ability to fund plan and lack of special circumstances.
Procedural posture

Debtors, a husband and wife, filed a petition under chapter 7 of the Bankruptcy Code, and a bankruptcy administrator filed a motion to dismiss the debtor's case pursuant to 11 U.S.C.S. § 707(b)(1) and (3), or to convert it to one under chapter 13 of the Bankruptcy Code with the debtors' consent. The court held a hearing on the administrator's motion.

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Consumer opinion summary, case decided on July 25, 2012 , LexisNexis #0812-059

In re Tinney

Ruling
Inheritance received more than 180 days after petition date was not property of the estate.
Procedural posture

Debtor filed a petition under chapter 13 of the Bankruptcy Code, and the court confirmed the debtor's bankruptcy plan and appointed a trustee to administer the plan. The trustee filed a motion to modify the plan so that it required the debtor to use assets she inherited from her mother to pay unsecured creditors' claims. The debtor opposed the motion.

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Consumer opinion summary, case decided on July 09, 2012 , LexisNexis #0912-027

Bank of N.Y. Mellon v. Jefferson County (In re Jefferson County)

Ruling
County ordered to remit revenue from sewer system to receiver except for amount necessary for actual operations.
Procedural posture

Plaintiff banks and insurance companies filed an adversary proceeding against defendant Jefferson County, Alabama, seeking a judgment declaring that the County was not allowed to withhold payments of money it claimed it needed to operate a sewer system. The case was tried to the court.

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Commercial opinion summary, case decided on June 29, 2012 , LexisNexis #0912-133

Bank of N.Y. Mellon v. Jefferson County (In re Jefferson County)

Ruling
Subordination of consensual lien on specific revenues was inapplicable to pledge and distributive scheme under indenture agreement for sewer system operating expenses.
Procedural posture

An indenture trustee and other banks filed a complaint against a county that sought bankruptcy relief under chapter 9, based on a dispute over what expenditures for the county's sewer system were payable ahead of payments to those lenders who/which secured payment of interest and principal owed on the county's sewer system's warrants by obtaining a consensual lien against some revenues of the sewer system.

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Commercial opinion summary, case decided on June 29, 2012 , LexisNexis #0213-019

Geddes v. Watson (In re Watson)

Ruling
Assets debtor received from mother's estate were property of the estate and subject to turnover.
Procedural posture

Plaintiff chapter 13 trustee filed an adversary proceeding against defendants, a chapter 13 debtor and a person who was appointed to administer a decedent's estate, seeking an order requiring defendants to turn over property the debtor had received from the decedent's estate or would receive in the future. The trustee filed a motion for summary judgment.

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Consumer opinion summary, case decided on June 11, 2012 , LexisNexis #0712-055

Fields v. Education Credit Mgmt. Corp. (In re Fields)

Ruling
Student loan debt was dischargeable where debtor suffered from serious mental illness.
Procedural posture

Debtor filed a complaint against defendant student loan creditor to determine the dischargeability of his student loan debt under 11 U.S.C.S. § 523(a)(8).

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Consumer opinion summary, case decided on March 23, 2012 , LexisNexis #0412-087