Skip to main content

Page Banner(Taxonomy)

northern district of alabama

In re Frank

Ruling
Relief from stay granted to allow valid mortgage assignee to pursue settlement with debtor allowing for 12-month cure period.
Procedural posture

When a motion to lift the automatic stay was filed by a putative creditor, the trustee objected on the ground that the creditor in fact was not a valid assignee of the mortgage on debtor's residence and thus lacked standing to seek a lift of the stay. Debtor did not challenge standing.

ABI Membership is required to access the full summary of In re Frank Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on March 08, 2011 , LexisNexis #0411-039

In re Jahed

Ruling
Court declined to sanction debtor's former counsel for failure to appear at hearing on debtor's pro se motion for extension of time to obtain new counsel.
Procedural posture

Debtor's counsel was ordered to show cause why sanctions including possible suspension from practice should not be imposed for his failure to appear at a hearing on debtor's motion to extend time to "pursue other legal counsel." The court also considered issues raised by the U.S. Trustee (UST) as to whether the compensation paid to counsel was reasonable per 11 U.S.C.S. § 329(a) and Fed. R. Bankr. P. 2016(b).

ABI Membership is required to access the full summary of In re Jahed Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on March 07, 2011 , LexisNexis #0411-038

Kostyshyn v. Joseph (In re Kostyshyn)

Ruling
Case of serial filer who was in violation of two-year filing ban and showed no desire to satisfy debts was properly ordered dismissed.
Procedural posture

Debtor, a serial filer, sought review of the dismissal of his most recent petition. The petition was filed despite a two-year filing ban.

ABI Membership is required to access the full summary of Kostyshyn v. Joseph (In re Kostyshyn) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on March 01, 2011 , LexisNexis #0411-092

Haver v. Jahanian (In re Jahanian)

Ruling
Motion for denial of discharge denied where debtor's attorney's addition of postpetition creditor to schedules did not render debtor's omission from original schedules willful.
Procedural posture

Creditors filed an action against chapter 7 debtor. In Count III of the complaint, they sought denial of discharge under 11 U.S.C.S. § 727(a)(4) based on false oaths or accounts. Plaintiffs argued that in his original chapter 13 filings, defendant had intentionally omitted them as creditors. Defendant filed a motion for summary judgment on Count III.

ABI Membership is required to access the full summary of Haver v. Jahanian (In re Jahanian) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on February 22, 2011 , LexisNexis #0311-091

In re Christensen

Ruling
Debtor could not reopen no asset case to add unscheduled creditors whose claims were already effectively discharged.
Procedural posture

Debtor filed a petition under chapter 7 of the Bankruptcy Code, and the court entered an order discharging debts the debtor owed. Two years after he received a discharge, the debtor filed a motion for an order under 11 U.S.C.S. § 350(b) which allowed him to reopen his case so he could amend his schedules by adding as creditors, two people who obtained a default judgment against him. The creditors opposed the motion.

ABI Membership is required to access the full summary of In re Christensen Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on February 18, 2011 , LexisNexis #0711-073

Bankston Motor Homes Inc. v. Dennis (In re Dennis)

Ruling
Overpayment caused by debtor was a nondischargeable debt.
Procedural posture

Plaintiff, the employer of defendant Chapter 7 debtor, sought a determination that the amount of overcompensation paid to the debtor was nondischargeable under 11 U.S.C.S. §§ 523(a)(2)(A), (a)(6), and (a)(4).

ABI Membership is required to access the full summary of Bankston Motor Homes Inc. v. Dennis (In re Dennis) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on February 17, 2011 , LexisNexis #0311-048

Peterson v. United States BankShares Inc. (In re Peterson)

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.

ABI Membership is required to access the full summary of Peterson v. United States BankShares Inc. (In re Peterson) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on January 13, 2011 , LexisNexis #0211-066

In re Cryptek Inc.

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.

ABI Membership is required to access the full summary of In re Cryptek Inc. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on December 21, 2010 , LexisNexis #0111-131

In re Western Healthcare LLC

Ruling
Lessor granted relief from stay to take possession of property for which debtor's lease had expired.
Procedural posture

A Chapter 11 debtor leased assisted living facilities. After the debtor filed its petition for relief, the lessor filed a motion for relief from the automatic stay to allow it to take possession of the facilities.

ABI Membership is required to access the full summary of In re Western Healthcare LLC Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on December 09, 2010 , LexisNexis #0111-117

Swift Fin. Corp. v. Matera (In re Matera)

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).

ABI Membership is required to access the full summary of Swift Fin. Corp. v. Matera (In re Matera) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on December 08, 2010 , LexisNexis #0111-123