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northern district of alabama

In re Hicks

Ruling
Case dismissed where nonconfirmable plan was not proposed in good faith.
Procedural posture

Chapter 13 trustee objected to confirmation of debtors' plan and filed a motion to dismiss the debtors' bankruptcy case. At the end of the confirmation hearing, the debtors' counsel informed the court that, if the trustee's motion was granted, the debtors intended to appeal. Counsel made an oral motion on the record for the court to stay its order pending appeal.

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Consumer opinion summary, case decided on June 15, 2011 , LexisNexis #0711-136

In re Haymarket Transp. Inc.

Ruling
Commissions earned by creditor outside 180-day period were not entitled to priority.
Procedural posture

Pursuant to 11 U.S.C.S. § 502(a), a Chapter 11 debtor objected to a claim filed by a creditor as a priority claim for unpaid commissions.

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Commercial opinion summary, case decided on May 13, 2011 , LexisNexis #0611-046

In re Majaraj

Ruling
Debtors could not cram down subordinate deed of trust as absolute priority rule continued to operate in individual chapter 11 cases with regard to non-exempt property owned on petition date.
Procedural posture

Debtors, who operated an auto body business, sought confirmation of a chapter 11 plan. Confirmation was opposed by a nominally secured creditor ("NSC"), whose subordinate deed of trust against the debtors' residence would have been stripped off. Additionally, the plan had not been accepted by the class of general unsecured creditors, who would have received an estimated 1.7 cents on the dollar over a period of five years.

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Consumer opinion summary, case decided on May 09, 2011 , LexisNexis #0611-098

Carleton v. Carleton (In re Carleton)

Ruling
Former spouse's claim for division of property was discharged due to failure to file adversary proceeding to except claim from discharge.
Procedural posture

Plaintiff sought a judgment declaring that defendant's claim for a divorce- related property settlement against plaintiff's deceased husband (debtor) was discharged in the debtor's chapter 7 bankruptcy case. Although not formally designated as such, the court treated the parties' briefs and submissions as motions for summary judgment made pursuant to Fed. R. Bankr. P. 7056.

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Consumer opinion summary, case decided on April 25, 2011 , LexisNexis #0511-105

In re Nealey

Ruling
Confirmation of modified plan denied on trustee's objection due to improper classification of restitution claim.
Procedural posture

Before the court was the objection of the standing chapter 13 trustee to confirmation of a modified plan filed by debtors on January 19, 2011.

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Consumer opinion summary, case decided on April 19, 2011 , LexisNexis #0511-131

Grey-Theriot v. Quansah (In re Quansah)

Ruling
State court judgment that satisfied necessary elements was a nondischargeable debt.
Procedural posture

Plaintiff creditor brought an action under 11 U.S.C.S. § 523(a)(2)(A) against defendant Chapter 7 debtor to determine the dischargeability of a judgment obtained against the debtor under the Virginia Consumer Protection Act (the Act), Va. Code Ann. § 59.1-196 et seq., for failure to deliver airline tickets for which the creditor had paid.

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Consumer opinion summary, case decided on April 11, 2011 , LexisNexis #0511-058

In re Martinez

Ruling
Insurance proceeds from deceased debtor's policy were property of spouse's estate.
Procedural posture

Chapter 11 debtor filed a motion for a determination that life insurance proceeds payable to her from a policy exempted by her late debtor husband were not property of the estate in her chapter 11 case.

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Consumer opinion summary, case decided on March 31, 2011 , LexisNexis #0611-028

Anglin v. Wallis (In re Wallis)

Ruling
State court judgment that LLC was established to shield assets and avoid creditors established willful and malicious injury and was nondischargeable.
Procedural posture

Judgment creditors filed an adversary proceeding against chapter 7 debtor, seeking a determination that a judgment they obtained in an Alabama court was nondischargeable under 11 U.S.C.S. § 523(a)(2)(A) and (a)(6), and an order denying the debtor's discharge under 11 U.S.C.S. § 727. The case was tried to the court.

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Consumer opinion summary, case decided on March 31, 2011 , LexisNexis #0811-016

In re Taneja

Ruling
Order for sale partially vacated to allow creditor to file adversary proceeding determining validity, priority and extent of lien.
Procedural posture

A loan servicer, as attorney in fact for a trustee of a bank, filed a motion to vacate an order approving a sale of real estate free and clear of liens under 11 U.S.C.S. § 363(f)(4), alleging that the bank was not served with, or given notice of, the sale motion. The motion to vacate the sale order was opposed by the chapter 11 trustee, by the purchasers of the property, and by another creditor that was the recipient of the proceeds of the sale.

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Consumer opinion summary, case decided on March 15, 2011 , LexisNexis #0511-007

Community Credit Union v. Hammontree (In re Hammontree)

Ruling
Discharge denied due to failure to keep adequate records and transfer of S-corp's business and assets for debtor's personal gain.
Procedural posture

Plaintiff creditors each filed adversary proceedings against defendant Chapter 7 debtor alleging that the debtor should be denied a discharge under 11 U.S.C.S. § 727(a). The complaints were consolidated for trial.

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Consumer opinion summary, case decided on March 11, 2011 , LexisNexis #0411-063