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northern district of alabama

In re Tai T. Vuong

Ruling
Creditor's objection to the debtor's claim of exemptions under state law was overruled since the creditor showed no grounds for not allowing the exemptions.
Procedural posture

Debtor filed a voluntary petition for relief under chapter 7. Creditor, the holder of a third deed of trust on some of debtor's real estate, filed an objection to the debtor's claim of exemptions.

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opinion summary, case decided on February 06, 2006 , LexisNexis #0406-050

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

Ruling
Creditor was granted relief from the automatic stay to enforce a deed of trust against real property over the objections of the debtor's wife even though the property affected was not estate property but rather property of the debtor's wife and son and thus unaffected by the stay.
Procedural posture

Creditor filed a motion for relief from the automatic stay in order to enforce a deed of trust against real property. The debtor's schedules do not list any interest in the property, and neither the chapter 7 trustee nor the debtor opposed the motion. The only opposition was filed by the debtor's wife, who represented that she and her son were the only owners of the property and that she was the only maker of the promissory note.

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opinion summary, case decided on January 18, 2006 , LexisNexis #0406-047

In re U.S. Airways Inc.

Ruling
Court did not allow a creditor's late-filed claims since adequate notice was provided by publication in the paper and the late filing was not due to excusable neglect.
Procedural posture

Before the court in a chapter 11 matter was the objection of a creditor to movant reorganized debtors'request for an order disallowing late-filed claims, including two that the claimant filed in the total amount of approximately $9.7 million.

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opinion summary, case decided on December 29, 2005 , LexisNexis #0406-034

In re Balthrop

Ruling
Debtors'chapter 13 plan was confirmed since the plan met the best interests of the creditor test, the debtors could exempt the marital residence, and the creditor did not show a medical emergency exception to this exemption.
Procedural posture

Chapter 13 trustee filed an objection to confirmation of debtors'plan, which objection was joined by creditor, claiming that the plan did not comply with 11 U.S.C. § 1325(a)(4).

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opinion summary, case decided on November 28, 2005 , LexisNexis #0306-018

In re US Airways Inc.

Ruling
Debtor's former employee was denied a motion to file a late proof of claim since sufficient notice was provided and no excusable neglect was established.
Procedural posture

Debtor airline filed for chapter 11 bankruptcy protection. The court established a claims bar date for creditors other than governmental units. After the claims bar date passed, movant former employee and wife sought leave to file a late proof of claim. The bankruptcy court held a hearing on the motion.

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opinion summary, case decided on November 21, 2005 , LexisNexis #0206-085

In re Louredo

Ruling
Debtor's case was dismissed even though the debtor obtained after filing the required credit counseling since, on filing, the debtor's certificate of exigent circumstances was insufficient.
Procedural posture

Debtor filed a voluntary petition for relief under chapter 7 of the Bankruptcy Code, together with a certificate of exigent circumstances. The court held that the certificate was deficient because it lacked a statement that the debtor had attempted but was unable to obtain the credit counseling required by 11 U.S.C. § 109(h)(1). The debtor subsequently filed a certificate reflecting that she received the required credit counseling.

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opinion summary, case decided on November 16, 2005 , LexisNexis #0306-108

In re Allen

Ruling
Court dismissed the debtor's case since the debtor's certificate of exigent circumstances regarding the prefiling credit counseling requirement was deficient.
Procedural posture

The debtor filed a voluntary petition for relief under chapter 13 of the Bankruptcy Code and a certification of exigent circumstances as to why she had not obtained credit counseling, as required by 11 U.S.C. § 109(h). The court held that the certificate was deficient because it lacked a statement that the debtor had attempted but was unable to obtain the required counseling, and it granted the debtor leave to file a supplemental certificate.

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opinion summary, case decided on November 15, 2005 , LexisNexis #0306-106

Khuu v. Beeren & Barry Invs. LLC (In re Khuu)

Ruling
Court denied a motion to dismiss the debtor's complaint since the complaint stated a claim and the debtors had standing under the circumstances to assert transfer avoidance powers that ordinarily reside with the trustee.
Procedural posture

Plaintiffs, chapter 13 debtors, brought an action to set aside a prepetition foreclosure sale at which defendant purchasers bought debtors'house. Defendants moved to dismiss the complaint for lack of jurisdiction and failure to state a claim for relief.

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opinion summary, case decided on October 13, 2005 , LexisNexis #0406-053

In re Rudy

Ruling
Debtor's former wife and the wife's attorney were held in contempt for violating a discharge injunction by pursuing indemnification for credit card debts for which the debtor's liability was deemed to have arisen prepetition.
Procedural posture

A chapter 7 matter was before the court on an order requiring debtor's former wife and her attorney to show cause why they should not be held in civil contempt, and appropriate sanctions imposed, for violation of the discharge injunction.

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opinion summary, case decided on October 12, 2005 , LexisNexis #0406-055

In re Moroney

Ruling
Chapter 13 petition was dismissed due to debtor bad faith in proposing modest payout in plan since the tax debt was recently not discharged under chapter 7 and the debtor showed no evidence of financial troubles or efforts to pay the tax debt.
Procedural posture

Primary creditor, the IRS, objected to the confirmation of the debtor's chapter 13 plan for lack of good faith and for not devoting all of debtor's disposable income into the performance of the plan. The U.S. trustee moved to dismiss the case based on 11 U.S.C. §§ 1307 and 1325.

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opinion summary, case decided on June 08, 2005 , LexisNexis #0106-102