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Walton v. Countrywide Home Loans Inc. (In re Sanchez)

Ruling
United States Trustee could not pursue sanctions against lender on behalf of public in adversary proceeding where debtors had withdrawn their own motion.
Procedural posture

Defendant creditor filed a motion to dismiss plaintiff United States Trustee's (UST) adversary proceeding, seeking monetary sanctions pursuant to 11 U.S.C.S. § 105 and injunctive relief against the lender for allegedly engaging in bad faith conduct which abused the judicial process in connection with the chapter 13 bankruptcy case of two debtors.

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Consumer opinion summary, case decided on October 02, 2008 , LexisNexis #1108-096

In re Premium Sales Corp.

Ruling
Court denied motion to distribute unclaimed earmarked funds to judgment creditors of debtor's shareholders who had perpetuated fraud.
Procedural posture

The United States Trustee objected to the applicants' motion for the release of unclaimed funds, pursuant to 11 U.S.C.S. §§ 347 and 1143, in a chapter 11 bankruptcy case.

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Commercial opinion summary, case decided on September 09, 2008 , LexisNexis #1208-139

In re Vernell

Ruling
Debtor's former counsel entitled to have order allowing fees reduced to final judgment
Procedural posture

The debtors filed for relief under chapter 13 of the Bankruptcy Code, on an emergency basis, through a petition filed by their former counsel. Some five months later, counsel withdrew as the attorney of record and filed an application for compensation. An agreed order allowing fees was entered, and counsel filed a motion to reduce the agreed order to a final judgment.

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Consumer opinion summary, case decided on August 27, 2008 , LexisNexis #0908-094

In re Weiser

Ruling
Debtors with unsecured debt in excess of limits were ineligible under chapter 13.
Procedural posture

Objections to confirmation on various grounds including lack of eligibility for chapter 13 relief under 11 U.S.C.S. § 109(e) and lack of good faith under 11 U.S.C.S. § 1325(a)(3) were asserted by plaintiffs, three lenders, all of which claimed that debtors were not entitled to relief. At issue was whether debtors' participation in challenged loan transactions provided grounds for denial of relief under chapter 13.

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Consumer opinion summary, case decided on July 31, 2008 , LexisNexis #0908-036

Island Place Apts. LLC v. First How View Corp. (In re Greater Miami Neighborhoods Inc.)

Ruling
Duly conducted foreclosure sale to good faith purchaser could not be avoided.
Procedural posture

Plaintiff, an apartment complex owned by a debtor, filed an adversary proceeding against defendants, a successful bidder and a third party purchaser, to avoid transfer of plaintiff's property pursuant to a foreclosure sale and to recover the property pursuant to 11 U.S.C.S. § 550. The bidder and the purchaser filed a motion to dismiss, which was treated as a motion for summary judgment.

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Commercial opinion summary, case decided on June 16, 2008 , LexisNexis #0808-015

In re Perez

Ruling
Lien that attached to property simultaneously with homestead right was avoidable.
Procedural posture

A debtor filed for relief under chapter 7 of the Bankruptcy Code. In March 1999, a judgment creditor obtained a final judgment against the debtor in state court. The debtor filed a motion to avoid a judgment lien asserted on the property by the judgment creditor, pursuant to 11 U.S.C.S. § 522(f).

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Consumer opinion summary, case decided on June 05, 2008 , LexisNexis #0808-013

In re Ocean Blue Leasehold Prop. LLC v. Croley (In re Ocean Blue Leasehold Prop LLC)

Ruling
Sale of property owned by debtors as tenants-in-common with co-owner of 1/30 interest authorized with payment to co-owner.
Procedural posture

Plaintiff debtor brought an adversary complaint against defendants, who were co-owners of the subject real property as tenants in common, seeking the entry of a final judgment authorizing the debtor to sell both the estate's interest and co-owners' interests in the property pursuant to 11 U.S.C.S. § 363(h). The co-owners, who each owned a 1/30 interest in the office building property, opposed the sale of their interests.

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Commercial opinion summary, case decided on March 07, 2008 , LexisNexis #0408-111

In re Peralta Food Corp.

Ruling
Settlement agreement was not an executory contract and not subject to rejection.
Procedural posture

The debtor moved to reject a settlement agreement it had entered into with the creditor, a former employee of the debtor, as an executory contract. The sole issue was whether the settlement agreement could be construed as an executory contract that was subject to rejection by the debtor pursuant to 11 U.S.C. § 365.

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Commercial opinion summary, case decided on January 18, 2008 , LexisNexis #0208-110

In re Morgan

Ruling
Above-median debtor could take mortgage-rent expense on Form B22C despite being rent- free.
Procedural posture

After debtor deducted the "Local Standard" amount established by the IRS on account of mortgage/rent expense and referenced in 11 U.S.C. § 707(b)(2)(A)(ii)(I), the trustee objected to confirmation on the ground that no deduction was properly taken because debtor was living rent-free. At issue was the proper reading of section 707 as enacted in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA").

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opinion summary, case decided on August 08, 2007 , LexisNexis #0907-086

In re Pan Am Hosp. Corp.

Ruling
Debtor's advisors allowed transaction fee regardless of timing of sale of assets.
Procedural posture

A debtor filed for relief under chapter 11. Advisors for the debtor filed an application for final fees. An official committee of unsecured creditors filed an objection to the final fee application of the advisor.

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Commercial opinion summary, case decided on July 17, 2007 , LexisNexis #1007-063