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northern district of alabama

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

BankChampaign v. Bullock (In re Bullock)

Ruling
State court judgment for breach of fiduciary duty due to self-dealing was nondischargeable.
Procedural posture

Creditor filed an adversary action to determine the dischargeability of a state court judgment entered against the debtor. The creditor filed a motion for summary judgment.

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Consumer opinion summary, case decided on May 27, 2010 , LexisNexis #0910-019

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

Fulgham v. York (In re York)

Ruling
Discharge denied due to debtor's false oaths and schedules.
Procedural posture

Plaintiff creditors brought an adversary proceeding against defendant bankruptcy debtor seeking denial of the debtor's discharge under 11 U.S.C.S. § 727(a)(4) based on the debtor's false oaths and accounts in the debtor's schedules and statement of financial affairs (SFA) which failed to disclose interests and transactions. The creditors moved for summary judgment.

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Consumer opinion summary, case decided on May 12, 2010 , LexisNexis #0810-097

Holman v. Citimortgage Inc. (In re Holman)

Ruling
Debtors could maintain proceeding against mortgage company for abuse of bankruptcy process by routinely filing false affidavits when seeking relief from stay.
Procedural posture

Debtors brought a proceeding against defendant mortgage company. The Amended Complaint essentially alleged that the company had made an institutional practice of filing false affidavits in the court and elsewhere, in support of its motions for relief from the automatic stay. Before the court was the company's motion to dismiss pursuant to Fed. R. Civ. P. 12(b).

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Consumer opinion summary, case decided on May 06, 2010 , LexisNexis #0710-071

First Natl Bank v. Moore (In re Moore)

Ruling
Loan debt was nondischargeable based on debtor's provision of false financial statements.
Procedural posture

Plaintiff creditor bank brought a complaint to deny defendant debtor a discharge pursuant to 11 U.S.C.S. § 727(a)(3) and (a)(5), and in the alternative, to determine that the debt owed to the creditor bank by a corporation that the debtor partially owned was nondischargeable pursuant to 11 U.S.C.S. § 523(a)(2)(A) and (B). The creditor alleged that the debtor had guaranteed the debt, but it did not produce a written guarantee.

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Consumer opinion summary, case decided on May 06, 2010 , LexisNexis #0810-060

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