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In re Franchi

Ruling
Service of objection to proof of claim upon unnamed corporate officer was insufficient.
Procedural posture

Before the court were three cases that dealt with the issue of whether service upon an unnamed corporate officer satisfied Fed. R. Bankr. P. 9014, incorporating Fed. R. Bankr. P. 7004(b)(3) and 7004(h).

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Consumer opinion summary, case decided on May 27, 2011 , LexisNexis #0611-104

Walton v. Charno (In re Charno)

Ruling
Pawning of diamond ring and transfer of registration of business from one debtor to the other were not grounds for denial of discharge.
Procedural posture

Plaintiff United States Trustee (UST) filed a complaint against defendant Chapter 7 debtors objecting to their discharge under 11 U.S.C.S. § 727(a)(2)(B) on the grounds that they made improper post-petition transfers with intent to hinder, delay, or defraud creditors.

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Consumer opinion summary, case decided on May 24, 2011 , LexisNexis #0611-064

Rotella v. Bellassai (In re Bellassai)

Ruling
Transfer and concealment of interest in business was grounds for denial of discharge.
Procedural posture

Plaintiff creditor filed an adversary complaint seeking to block defendant debtor's discharge pursuant to 11 U.S.C.S. § 727(a)(2), (3), (4), and (5).

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Consumer opinion summary, case decided on May 20, 2011 , LexisNexis #0611-063

In re Moon Thai & Japanese Inc.

Ruling
Attorneys suspended from practice and ordered to complete bankruptcy CLE due to serious concerns regarding representation of clients.
Procedural posture

The court issued an order which directed two attorneys who were partners in a law firm, and the firm, to show cause why they should not be suspended from practicing bankruptcy law for their conduct in representing various clients who declared bankruptcy, and it directed the attorneys to hire outside counsel to review procedures the firm used when representing clients in chapter 11 and chapter 13 bankruptcy cases.

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Commercial opinion summary, case decided on April 08, 2011 , LexisNexis #0511-002

In re New River Dry Dock Inc.

Ruling
Motion for sanctions against debtor's counsel filed on the last day of 21-day safe harbor period denied as premature.
Procedural posture

An unsecured creditor under the chapter 11 debtor's confirmed plan of reorganization sought sanctions against counsel for a claimant pursuant to Fed. R. Bankr. P. 9011.

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Commercial opinion summary, case decided on March 31, 2011 , LexisNexis #0711-031

Welt v. Farino (In re Auto Restoration Inc.)

Ruling
Court declined to abstain from hearing claim under emergency repair service contract which was related to debtor's bankruptcy.
Procedural posture

Trustee brought an adversary proceeding against defendant property owner to recover an unpaid debt to a bankruptcy debtor arising from an emergency repair service contract. The owner moved to dismiss the complaint for lack of jurisdiction and failure to state a claim, or for mandatory and/or permissive abstention in favor of a state-court action which was dismissed for lack of prosecution.

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Commercial opinion summary, case decided on February 11, 2011 , LexisNexis #0311-033

In re Zaldivar

Ruling
Loan debt could be crammed down despite debtor's partial use of property as principal residence where rider to mortgage deleted owner-occupancy requirement.
Procedural posture

A Chapter 13 debtor filed a motion to value her property. The court invited briefing on the issue of whether the motion sought to modify the rights of holders of a claim secured only by a security interest in real property that was the debtor's principal residence because if so, the requested relief was prohibited by 11 U.S.C.S. § 1322(b)(2).

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Consumer opinion summary, case decided on January 25, 2011 , LexisNexis #0211-065

In re Pearl Cos.

Ruling
Arbitration under debtor's collective bargaining agreement did not violate stay.
Procedural posture

The chapter 11 debtors filed an emergency motion seeking an order to show cause why a union should not be held in contempt for violating the automatic stay pursuant to 11 U.S.C.S. § 362(a) by pursuing its claims against the estate in an arbitration proceeding.

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Commercial opinion summary, case decided on September 02, 2010 , LexisNexis #1010-009

In re Deli Den LLC

Ruling
Emergency motion for debtor to surrender premises granted as lease was deemed rejected when debtor failed to assume or reject.
Procedural posture

Creditor lessor filed an emergency motion for the debtor to surrender leased premises pursuant to 11 U.S.C.S. § 365(d)(4).

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Commercial opinion summary, case decided on March 12, 2010 , LexisNexis #0510-010

In re Harding

Ruling
Separate classification of nondischargeable student loan debt denied.
Procedural posture

A bankruptcy debtor proposed a plan which provided for full payments toward nondischargeable student loan debt, rather than a pro rata distribution to the student loan creditor with all unsecured creditors. The debtor moved to classify the student loan debt separately from other unsecured debts.

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Consumer opinion summary, case decided on February 08, 2010 , LexisNexis #0310-098