Alabama

Williams v. Adams

Plaintiffs, creditors, filed an adversary proceeding against defendant debtor seeking a determination that its debt was nondischargeable pursuant to 11 U.S.C. § 523(a)(6). The creditors had obtained a state court judgment against, inter alia, the debtor. The judgment imposed liability on the debtor, who had owned a restaurant and bar, under Missouri's dram shop law. The creditors moved for summary judgment based on collateral estoppel.
Ruling: 
Dram shop judgment was not automatically excepted from discharge due to differing state and code standards for willful wanton and malicious conduct.
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In re Custom Servs. Intl Inc.

Two attorneys for a bankruptcy debtor applied for attorney fees and expenses. The chapter 7 trustee objected to the applications.
Ruling: 
Fee application denied due to attorney's undisclosed conflict of interest and application of second attorney reduced for excessive time.
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In re Robinson Foundry Inc.

Debtor filed a voluntary chapter 11 bankruptcy petition. After the deadline for filing a proof of claim had passed, a creditor moved to file an untimely proof of claim pursuant to Fed. R. Bankr. P. 3003(c)(3) and 9006(b)(1). The court held a hearing on the motion.
Ruling: 
Failure of creditor with actual notice of bankruptcy to file timely notice of claim was not due to excusable neglect.
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Bentley v. Nissan Motor Acceptance Corp. (In re Bentley)

Plaintiff bankruptcy debtor brought an adversary proceeding against defendant creditor for violating the automatic stay by postpetition repossession of the debtor's vehicle. In the debtor's main case, the debtor also objected to the creditor's amended proof of claim, and the creditor moved for relief from the stay. The bankruptcy court conducted a trial addressing all of these matters.
Ruling: 
Creditor's knowing repossession of debtor's vehicle was a willfull violation of stay.
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In re Morgan

A creditor filed a motion for relief from the automatic stay to permit it to proceed with ejectment proceedings against a chapter 13 debtor.
Ruling: 
Prepetition foreclosure sale terminated debtor's rights in property even though deed was filed postpetition.
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In re Piknik Prods. Co.

The attorneys for a bankruptcy debtor applied for approval of compensation and reimbursement of expenses. The committee of unsecured creditors objected to payment of any fee that would have resulted in priority above other administrative expenses.
Ruling: 
Debtor's attorneys fees could be paid from cash earned in operation of debtor's business within budget approved by creditor on pro rate basis with other administrative claimants.
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In re Everett

The debtors filed a motion to reopen their chapter 7 bankruptcy case, pursuant to 11 U.S.C. § 350, to amend the schedules.
Ruling: 
Reopening of no asset case to list dischargeable prepetition debt in schedules was not necessary.
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Talley v. Alabama Dept of Public Safety (In re Talley)

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.
Ruling: 
Suspension of driver's license for failure to pay traffic fines did not violate stay.
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Alabama Dept of Human Resources v. Sanders (In re Sanders)

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.
Ruling: 
BAPCPA did not require domestic support arrerages to be paid in full before other disbursements in a chapter 13 plan.
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Regions Bank v Faulk (In re Faulk)

Plaintiff creditor filed a complaint under 11 U.S.C. § 523(a)(2) to determine the dischargeability of its claim for two construction loans made in its connection with defendant debtor's part-time business as a residential contractor. The creditor contended that the debtor obtained the loans by actual fraud.
Ruling: 
Debt was deemed dischargeable since creditor had not proven fraud.
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