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northern district of alabama

Miller Buckfire & Co. LLC v. Citation Corp.

Ruling
Bankruptcy court erred in using lodestar approach to set fees for financial advisor where flat fee contract existed.
Procedural posture

Appellant financial services company appealed a decision of the bankruptcy court that reduced the company's fees for financial advice and investment banking services and denied their request for attorney fees related to appellee debtor's bankruptcy. The debtor filed a cross-appeal the amount awarded to the company.

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opinion summary, case decided on September 11, 2006 , LexisNexis #1106-112

In re Dudley

Ruling
Properly conducted and noticed sale of debtors'property approved over objection of one of debtors'children.
Procedural posture

A chapter 7 trustee filed a motion seeking to sell, by auction, 40 acres of land owned by two co-debtors. Two of the co-debtors'children filed objections challenging the sale. The trustee held the auction a month before the order granting his motion was issued. One of the children moved to have the sale set aside. The court held a hearing, which was attended by the trustee, the co- debtors, the objecting children, and the property purchasers.

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opinion summary, case decided on September 05, 2006 , LexisNexis #1006-068

Bevelle v. Jefferson County (In re Bevelle)

Ruling
State court condemnation action was an exercise of police or regulatory power and was not subject to stay.
Procedural posture

Plaintiff chapter 13 debtor filed an adversary proceeding against defendants, an Alabama city and county, seeking to enjoin the city from vacating an alleyway adjacent to his property and to enjoin the county from using its eminent domain powers to take his property. The debtor moved for issuance of a temporary restraining order ("TRO"). The city filed a motion to dismiss. The county filed motions to abstain and for relief from the automatic stay.

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opinion summary, case decided on August 25, 2006 , LexisNexis #1006-086

In re Everett

Ruling
Reopening of no asset case to list dischargeable prepetition debt in schedules was not necessary.
Procedural posture

The debtors filed a motion to reopen their chapter 7 bankruptcy case, pursuant to 11 U.S.C. § 350, to amend the schedules.

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opinion summary, case decided on August 08, 2006 , LexisNexis #1006-026

In re Jones

Ruling
Damages for post-discharge personal injury action were not limited to insurance coverage provided plaintiff could not recover from debtor absent determination of nondischargeability.
Procedural posture

A third party filed a personal injury suit against a chapter 7 debtor in the Circuit Court of Loudoun County (Virginia). The state court asked the court to determine what effect the discharge injunction under 11 U.S.C. § 524(a) had on the personal injury suit. The court reopened the debtor's bankruptcy case and treated the request as a motion for clarification filed by the debtor. It held a hearing and thereafter issued an opinion.

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opinion summary, case decided on August 04, 2006 , LexisNexis #1106-028

In re Dyson

Ruling
Debtor's motion to avoid lien as preference denied as debtor could not exempt portion of real property equity to which lien attached.
Procedural posture

Debtor, an individual who had filed a chapter 13 bankruptcy, filed a motion to avoid a judgment lien docketed against her real property by a creditor. At issue was whether debtor was entitled to step into the shoes of the trustee and avoid the lien as a preference as permitted by 11 U.S.C. § 547(b).

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opinion summary, case decided on July 28, 2006 , LexisNexis #1106-075

Talley v. Alabama Dept of Public Safety (In re Talley)

Ruling
Suspension of driver's license for failure to pay traffic fines did not violate stay.
Procedural posture

Plaintiff debtor instituted an adversary proceeding alleging that the suspension of his driver's license by defendants, Alabama Department of Public Safety and its director, violated the automatic stay imposed by 11 U.S.C. § 362. Defendants moved to dismiss.

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opinion summary, case decided on July 27, 2006 , LexisNexis #1006-010

Alabama Dept of Human Resources v. Sanders (In re Sanders)

Ruling
BAPCPA did not require domestic support arrerages to be paid in full before other disbursements in a chapter 13 plan.
Procedural posture

Appellant creditor sought review of an order of bankruptcy court, which included the creditor's domestic support arrearages within plan of appellees, two debtors and the debtors'trustee, but overruled the creditor's objection to confirmation of the plan as to whether the order of priorities of 11 U.S.C. § 507 should apply to the plan.

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opinion summary, case decided on July 17, 2006 , LexisNexis #0906-074

In re Kissal

Ruling
Notice and hearing required prior to determination that stay had terminated with regard to security interest in motor vehicle.
Procedural posture

Creditor filed an ex parte motion for an order confirming that the automatic stay had terminated with respect to the enforcement of its security interest in a motor vehicle owned by the debtor. The issue was whether the court could, in fact, address the motion on an ex parte basis.

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opinion summary, case decided on June 29, 2006 , LexisNexis #0906-073

In re Dew

Ruling
Trustee's objections to chapter 13 plans, including that plans did not provide for general unsecured creditors, were sustained.
Procedural posture

The chapter 13 trustee filed an objection to confirmation with respect to four proposed plans filed after the effective date of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, asserting that either the length of the payments or the amount of the payments under the plan were insufficient under 11 U.S.C. § 1325 and related statutory provisions.

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opinion summary, case decided on June 21, 2006 , LexisNexis #0706-079