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northern district of alabama

In re Hammonds

Ruling
Confirmation denied as credit counseling received on petition date was not obtained during the 180-day period preceeding the date of the filing of the petition.
Procedural posture

A creditor filed an objection to confirmation on the ground that the debtors were not eligible to be debtors under 11 U.S.C.S. § 109(h). The creditor objected to the debtors' motion to continue confirmation of the chapter 13 plan.

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Consumer opinion summary, case decided on September 22, 2008 , LexisNexis #1208-106

Moulton v. Deutsche Bank Natl Bank Trust Co. (In re Moulton)

Ruling
Chapter 13 debtor allowed to sell house free and clear due to evidence of good faith.
Procedural posture

Plaintiff debtor filed a complaint against defendant mortgage creditor seeking to sell her house free and clear of liens. The debtor also moved for confirmation of her proposed chapter 13 plan. The creditor moved, pursuant to 11 U.S.C.S. § 362(j), for an order establishing that no stay was in effect, or, in the alternative, annulling the stay. The chapter 13 trustee filed an objection to confirmation and a motion to dismiss.

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Consumer opinion summary, case decided on September 15, 2008 , LexisNexis #1108-050

Urban Communicators PCS Ltd. Pship v. Gabriel Capital LP

Ruling
Bankruptcy court erred in reducing postpetition interest on unsecured claim.
Procedural posture

Creditor moved to compel payment of cash collateral under 11 U.S.C.S. §§ 362(d) and 363(e). It sought proceeds of a certain Federal Communications Commission (FCC) license sale. Debtors argued the creditor was not secured. The Bankruptcy Court for the Southern District of New York ruled that the creditor was secured. It also determined the appropriate rate of post-petition interest on the creditor's claim. Both sides appealed.

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Commercial opinion summary, case decided on September 12, 2008 , LexisNexis #1008-025

In re Fisher

Ruling
Debtor's motion for default in turnover proceeding denied due to improper service upon credit union.
Procedural posture

Debtor filed for relief under chapter 13 of the Bankruptcy Code. The debtor filed a complaint against defendant credit union seeking the turnover of property pursuant to 11 U.S.C.S. § 542. The debtor sought an order requiring the credit union to turnover title to the debtor's vehicle or an order releasing the lien. The debtor filed a motion for entry of default.

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Consumer opinion summary, case decided on September 12, 2008 , LexisNexis #1108-035

Williamson v. Sherlock (In re Sherlock)

Ruling
Bankruptcy court properly declined to apply marshaling doctrine to collect prepetition income tax refund offset by IRS.
Procedural posture

Chapter 7 trustee sought review of a decision of a bankruptcy court, which declined to apply the doctrine of marshaling to collect the pre-petition portion of appellee debtors'income tax refund that was offset by the Internal Revenue Service (IRS).

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Consumer opinion summary, case decided on September 11, 2008 , LexisNexis #1008-011

In re Artson

Ruling
Additional compensation to chapter 13 debtor's attorney allowed to extent not reducing dividend on non-joint unsecured claims.
Procedural posture

The debtor's counsel filed an application for approval and payment of supplemental compensation in a chapter 13 bankruptcy case. The trustee alleged that the plan was not sufficiently funded to allow payment of the fees without reducing the dividend currently being paid on unsecured claims.

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Consumer opinion summary, case decided on August 19, 2008 , LexisNexis #0908-133

In re Dugan

Ruling
Additional attorneys' fees could be paid from plan to the extent previously reserved.
Procedural posture

A debtor filed for relief under chapter 13 of the Bankruptcy Code, and was represented throughout the case by counsel. The debtor's counsel filed a motion for approval and payment of supplemental compensation in the amount of $1,171.

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Consumer opinion summary, case decided on August 18, 2008 , LexisNexis #0908-134

In re Cellitit

Ruling
Chapter 13 case dismissed with 180-day filing bar due to debtor's failure to make timely plan payments.
Procedural posture

A debtor filed for protection under chapter 13 of the Bankruptcy Code. The standing chapter 13 trustee filed a notice of default and a motion to dismiss. A secured creditor filed an objection to confirmation of the debtor's plan and an opposition to dismissal.

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Consumer opinion summary, case decided on August 15, 2008 , LexisNexis #1108-039

In re Carraway Methodist Health Sys.

Ruling
Creditor trade vendor's untimely claims denied.
Procedural posture

Debtors, a health systems corporation and its affiliates, filed a petition under chapter 11 of the Bankruptcy Code and listed a trade vendor as a creditor. The trade vendor filed a rejection damages claim and an administrative expense claim, and the debtors filed objections to both claims.

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Commercial opinion summary, case decided on July 23, 2008 , LexisNexis #0908-005

In re Mahjor

Ruling
Deferment of credit counseling requirement denied where debtor did not show it had requested counseling but was unable to obtain same within five days.
Procedural posture

A debtor filed a voluntary petition for adjustment of his debts under Chapter 13 of the Bankruptcy Code. Pursuant to 11 U.S.C.S. § 109(h)(3)(A), the debtor requested deferment of the required credit counseling due to exigent circumstances.

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Consumer opinion summary, case decided on July 14, 2008 , LexisNexis #0908-037