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Alabama

In re Dew

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.
Ruling: 
Trustee's objections to chapter 13 plans, including that plans did not provide for general unsecured creditors, were sustained.
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Peoples Bank v. SAIIA Constr. LLC (In re B&M Props. LLC)

Appellant creditor sought judicial review of a final order entered by the bankruptcy court. The issue was whether abstention doctrines applied to an involuntary bankruptcy case making it an error of law for the bankruptcy court to adjudicate the case before an active state case was resolved.
Ruling: 
Court reversed bankruptcy court since mandatory abstention was required concerning issue of perfection of mechanic's lien pending in state court.
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Reding v. Gallagher (In re Childs)

Plaintiff bankruptcy trustees brought an adversary proceeding against defendants, two law firms and an attorney, alleging misappropriation of property belonging to estates of bankruptcy debtors. The only parties remaining in the case were the trustees and one firm and its attorney (collectively, the firm). The firm filed a motion under 28 U.S.C. § 157(d) for mandatory and permissive withdrawal of reference and transfer to the district court.
Ruling: 
Law firm waived its right to withdrawal of reference for a jury trial since its withdrawal motion was not timely.
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In re Berry

After filing a chapter 13 bankruptcy petition, debtor moved for an extension or continuation of the automatic stay pursuant to 11 U.S.C. § 362(c)(3).
Ruling: 
Motion for extension of automatic stay was denied since debtor did not file motion before stay had expired.
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Lisenby v. J.A. Cambece Law Office P.C. (In re Lisenby)

Plaintiff debtor filed a complaint against defendants, a law firm and a collection agency, for damages for violation of the automatic stay and violation of the Fair Debt Collection Practices Act. The debtor moved for default judgment. The bankruptcy court conducted an evidentiary hearing on the sole issue of damages.
Ruling: 
Debtor was entitled to punitive damages where law firm and collection agency willfully violated automatic stay.
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Snowden v. Freds Stores of Tenn. Inc.

Plaintiff employee filed a notice of consent to become part of a class action to recover unpaid overtime wages brought against defendant employer pursuant to the Fair Labor Standards Act of 1938 ("FLSA"), 29 U.S.C. §§ 201, et seq. The employer filed motions for summary judgment as to the employee's claim on the basis of judicial estoppel.
Ruling: 
Former employee was not judicially estopped from bringing an FLSA action for simply delaying by four months amending the debtor's chapter 13 bankruptcy schedule to include the potential claim.
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In re Wright

Creditor had financed the debtors purchase of a vehicle and took a security interest in that vehicle. The creditor objected to confirmation of the chapter 13 plan proposed by the debtors. At issue was whether, under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA"), the plan could modify the contractual interest rate applicable to the creditor's secured claim.
Ruling: 
Interest rate on secured claims is calculated by the formula approach not by the contractual interest rate approach.
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In re Horn

Movant creditor filed an objection to confirmation of non-movant debtor's chapter 13 plan.
Ruling: 
Chapter 13 plan was not denied confirmation since Code section 506, instead of a new Code section, applied when a creditor's claim was not a purchase money security interest.
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