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northern district of alabama

In re Duncan

Ruling
Insurer not entitled to extension of time to file proceedings regarding dischargeability and denial of discharge due to failure to act in more timely fashion.
Procedural posture

In this chapter 7 case, a creditor insurer filed a motion for an extension of time to file complaints under 11 U.S.C.S. §§ 523, 727, and a request for an expedited hearing.

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Consumer opinion summary, case decided on August 31, 2009 , LexisNexis #1009-034

In re Smith

Ruling
Debtor's motion for preliminary injunction against foreclosure sale denied.
Procedural posture

A bankruptcy debtor asserted that a mortgage asserted against her was fraudulent and was fraudulently recorded, and the debtor moved for a preliminary injunction staying the mortgagee's foreclosure sale.

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Consumer opinion summary, case decided on August 28, 2009 , LexisNexis #1009-070

In re Gross

Ruling
Unlicensed bankruptcy petition preparer ordered to disgorge fees due to unauthorized practice of law.
Procedural posture

The United States Trustee sought relief against an unlicensed bankruptcy petition preparer who had been employed by the debtor. The trustee filed a motion for disgorgement of fees paid to the preparer and for imposition of sanctions against her for violations of 11 U.S.C.S. § 110.

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Consumer opinion summary, case decided on August 28, 2009 , LexisNexis #1009-071

In re Evans

Ruling
Petition preparer ordered to return fees, pay damages and pay fines for engaging in unauthorized practice of law and failing to disclose fees or provide required information to debtors.
Procedural posture

A United States Trustee (UST) filed a motion alleging that respondent bankruptcy petition preparer violated 11 U.S.C.S. § 110(b)(2)(A), (h)(2), and (k) by preparing a bankruptcy petition, schedules, a statement of financial affairs, and other documents for two individuals who declared chapter 7 bankruptcy, and he sought an order requiring respondent to disgorge his fees and imposing sanctions. The court held a hearing on the UST's motion.

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Consumer opinion summary, case decided on August 23, 2009 , LexisNexis #0909-108

Velarde v. Educational Credit Mgmt. Corp. (In re Velarde)

Ruling
Debtor with mental illness but low expenses denied undue hardship discharge of student loan debt.
Procedural posture

Plaintiff, a chapter 7 debtor, brought an adversary action seeking to discharge approximately $ 22,600 in student loan debts, based on the argument that paying the loans would constitute an undue hardship, pursuant to 11 U.S.C.S. § 523(a)(8). She was advised that she likely qualified for an alternative long term repayment program through the William D. Ford Direct Loan Program if relief was not granted by the court.

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Consumer opinion summary, case decided on August 23, 2009 , LexisNexis #0909-121

In re Church

Ruling
Attorney ordered to disgorge undisclosed prepetition fees.
Procedural posture

The chapter 13 bankruptcy administrator filed a motion for examination of the debtors' transactions with their attorney. The court conducted a hearing as to the amount of legal fees the attorney had charged the debtor, or that the debtors had actually paid the attorney, which was an issue of dispute between them. The debtors contended they had paid a $ 1,200 fee that the attorney denied receiving.

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Consumer opinion summary, case decided on August 21, 2009 , LexisNexis #0909-112

In re Miell

Ruling
Dismissal of debtor's motion to employ attorneys that represented him in criminal proceedings and for payment of fees from the estate affirmed.
Procedural posture

Appellant chapter 11 debtor filed a motion in the United States Bankruptcy Court for the Northern District of Iowa to approve employment of attorneys. The bankruptcy court denied the motion. The debtor appealed.

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Consumer opinion summary, case decided on August 20, 2009 , LexisNexis #0909-113

Taylor v. American General Fin.

Ruling
Relief from stay to allow foreclosure granted due to debtor's failure to comply with court orders.
Procedural posture

Plaintiff debtor filed a petition under chapter 13 of the Bankruptcy Code, and defendant creditor filed a series of motions seeking relief from the stay that was imposed pursuant to 11 U.S.C.S. § 362 when the debtor declared bankruptcy. The debtor filed an adversary proceeding against the creditor, seeking an accounting, and the court held a hearing on the creditor's third motion for relief from the stay and the debtor's adversary proceeding.

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Consumer opinion summary, case decided on July 07, 2009 , LexisNexis #0809-101

HGC Inc. v. Heatherworld Holdings LLC (In re Heatherworld Holdings LLC)

Ruling
Breach of contract and tortious interference claims against member of debtor LLC remanded to state court.
Procedural posture

Plaintiff corporation brought an action in state court against defendants, a bankruptcy debtor limited liability company and its members, alleging that the debtor breached a contract to operate and maintain the corporation's country club facilities and that the members tortiously interfered with business relations. The action was removed to bankruptcy court, and the corporation moved to remand the claims against the non-debtor members.

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Commercial opinion summary, case decided on June 22, 2009 , LexisNexis #0809-136

BFW Liquidation, LLC, In re--Kaye v. Quality Props., LLC

Ruling
Claim was disallowed in its entirety as the claimant failed to file a proof of claim before theexpiration of the bar date. (Bankr. N.D. Ala.)
Issue(s)
Allowance of Claims or Interests; Disallowance; Proof of Claim not Timely Filed.

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Commercial opinion summary, case decided on June 19, 2009 , LexisNexis #1218-067