Southern District

Bakst v. Sawran (In re Sawran)

The debtor filed for relief under chapter 7. The trustee was granted a judgment on the pleadings for a preferential transfer that the debtor made to the father. The trustee filed a subsequent action to recapture money that the father had transferred to defendants, a son and daughter-in-law, and a daughter, as subsequent transferees under 11 U.S.C. § 550(a). The court issued findings and conclusions.
Ruling: 
Recovery of preferential payments from subsequent transferors allowed solely to the extent of postpetition payments to debtor.
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In re Weinraub

Debtors filed bankruptcy in an attempt to prevent their eviction from their residence and undo allegedly predatory actions taken by a person alleged to be a trustee of a trust. Pending was debtors'Motion to waive the requirements of 11 U.S.C. § 362(l) and confirm the automatic stay was in effect as to the trustee and to issue an order to the Clerk of the Court staying it with complying with 11 U.S.C. § 362(l)(4)(B).
Ruling: 
Bankruptcy court waived requirement that debtor file residential tenancy certification and continued stay.
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Hamm v. United States (In re Hamm)

Debtors, a physician and his spouse, brought an adversary proceeding seeking a determination that their liability for federal income taxes to the IRS over a five-year period had been discharged in a prior chapter 7 case. At issue was whether the government had shown that debtors willfully attempted in any manner to evade or defeat the tax so as to trigger nondischargeability per 11 U.S.C. § 523(a)(1)(C).
Ruling: 
Tax debt was not discharged in either of well-to-do debtors'two bankruptcies given evidence of efforts to evade or defeat taxes.
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Salkin v. Chira (In re Chira)

Plaintiff, trustee for ex-husband debtor, brought an adversary proceeding against eight defendants, i.e., those who claimed an interest in certain real property, to determine the validity, priority, and amount of deeds made and obligations incurred by debtor. After a series of partial summary judgments, three defendants remained in litigation. The matter was pending decision following trial on issues between the trustee and remaining defendants.
Ruling: 
Claims of involuntary debtor's former spouse and spouse's mortgagee brother allowed but equitably subordinated.
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In re Farber

Creditor filed a motion to dismiss chapter 13 debtors'bankruptcy case due to a lack of good faith pursuant to 11 U.S.C. § 1307(c).
Ruling: 
Debtor's third case filed one day before effective date of BAPCPA with inaccurate listing of debts dismissed as filed in bad faith.
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Colonial Bank v. Freeman (In re Pac. Forest Prods. Corp.)

Appellee, a trustee in bankruptcy, brought an adversary proceeding against appellant banks in the bankruptcy court for the avoidance and recovery of fraudulent transfers under 11 U.S.C. §§ 544 and 548. The bankruptcy court granted the trustee's motion for a partial summary judgment, and the banks brought motions for leave to appeal the interlocutory order pursuant to 28 U.S.C. § 158(a).
Ruling: 
Court granted motion for interlocutory appeal to determine if a Ponzi scheme was a check kiting scheme and whether such scheme established debtor intent to defraud.
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In re Delfino

The debtor's filed a motion for reconsideration of the court's order that denied the debtor's motion to reopen his case for the purpose of amending or adding creditors. The debtor also filed a motion to enforce the discharge or in the alternative to show cause as to why the creditor should not be held in contempt.
Ruling: 
Debtor could not reopen case after seven years to add creditors due to lack of good faith.
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Mukamal v. Enriquez (In re Rx Cardiovascular Specialties Inc.)

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditor seeking to recover a payment and other transfers as preferences pursuant to 11 U.S.C. §§ 547 and 550. The trustees subsequently filed an amended complaint seeking avoidance and recovery of the payment as an unauthorized postpetition transfer pursuant to 11 U.S.C. § 549. The trustee filed a motion for partial summary judgment on the section 549 claim.
Ruling: 
Contemporaneous exchange for new value and ordinary course of business defenses to avoidance are not available with respect to postpetition transfers.
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In re El Toro Exterminator of Fla. Inc.

After debtor company filed a chapter 11 bankruptcy and appeared for a Fed. R. Bankr. P. 2004 examination, debtor allowed counsel for two creditors, a former employee and his counsel, to look at the records but would not permit copying. The creditors sought orders compelling production thereof and sanctioning debtor for refusing to allow discovery thereon. At issue was the effect, if any, of 11 U.S.C. § 107(b) on the parties'rights.
Ruling: 
Creditor could review documents containing commercial information subject to nondisclosure order.
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In re Petit-Louis

The debtor, who spoke limited English, could not obtain the requisite prefiling credit counseling in Creole, nor could he afford to hire an interpreter. The yrustee moved for reconsideration of the court's order granting the debtor a waiver of the credit counseling required by 11 U.S.C. § 109(h)(1). At the hearing on the matter, after resting, the trustee moved to introduce affidavits into evidence.
Ruling: 
Court upheld waiver of credit counseling since debtor could not find credit counseling in debtor's native language.
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