Southern District

In re Chira

Creditors filed an involuntary chapter 7 petition against debtor under 11 U.S.C. § 303. After her appointment, movant trustee sought to assume an executory contract for the sale of real property and to settle a dispute with respondent purchaser over the ownership of a hotel that he had purchased from a receiver appointed by a state divorce court.
Ruling: 
Trustee's motion to assume executory contract for sale of hotel and to settle dispute with purchaser was granted since contract was in best interests of estate and unsecured creditors.
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In re Marineau

Movant debtors sought to release funds garnished by respondent creditor and turnover of the garnished funds. The creditor cross-moved for relief from the automatic stay under 11 U.S.C. § 362 so that it could complete its state court garnishment of the funds.
Ruling: 
Court deemed that creditor's refusal to release state garnishment lien took priority over trustee's avoidance powers and thus did not vioalte automatic stay.
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Osborne v. American Express Travel Related Services Co. (In re Global Vending Inc.)

Plaintiff trustee's complaint sought to recover allegedly avoidable transfers from defendant transferee which exceeded $900,000. The matter came on for hearing on the trustee's ex parte motion for order authorizing the trustee to file under seal a settlement agreement with the transferee, which was filed by the trustee at the same time as the trustee's motion to approve compromise of controversy with the transferee.
Ruling: 
Motion to authorize trustee to file settlement agreement under seal was denied since motion did not satisfy exception to rule that documents be made available to public.
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In re Satinoff

A trustee and a debtor filed a joint motion to dismiss a chapter 7 case, pursuant to 11 U.S.C. § 521(e)(2), and to reinstate the case under 11 U.S.C. § 350(b).
Ruling: 
Court dismissed case due to late delivery of tax return but reinstated the case since the late delivery did not prejudice the parties.
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In re Suncruz Casinos LLC

Confirmed chapter 11 cases came on for hearing on the joint motion of the postconfirmation plan administrator for the liquidating debtors, and their primary secured creditor, seeking an order under 11 U.S.C. §§ 105(a) and 1129 and Fed. R. Bankr. P. 9020 and 9014, holding debtors'maritime insurer in civil contempt and awarding sanctions for violation of the permanent injunction entered as part of the order confirming the chapter 11 Plan.
Ruling: 
Insurer was held in civil contempt since insurer failed to file a preconfirmation administrative expense claim and pay indemnity claims in willful violation of the confirmation order.
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In re Mullennix

Movant chapter 7 trustee sought to compel turnover of insurance proceeds related to an automobile from respondent debtor.
Ruling: 
Motion to compel turnover of insurance proceeds was denied since they were deemed not part of estate.
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In re De La Rosa

A debtor filed a motion to re-open his bankruptcy case to add an omitted creditor, pursuant to 11 U.S.C. § 350.
Ruling: 
Bankruptcy court refused to reopen case after five years to allow debtor to list omitted judgment creditor due to prejudice to creditor.
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In re Hughes

The chapter 7 trustee filed a motion for approval of the sale of certain real property, free and clear of any liens, encumbrances or mortgages against the property, and also sought to impose against the proceeds of sale, his fees and expenses, as well as the fees and expenses of his attorney and his real estate broker.
Ruling: 
Trustee was denied motion to impose fee on creditor mortgagee for sale of property since trustee's efforts did not bestow benefit on creditor.
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In re Martinez

The debtors filed a motion for contempt and for sanctions after the secured creditor repossessed the debtors'automobile after the debtors fell behind in their plan payments that were entered pursuant to chapter 13.
Ruling: 
Debtor's motion for contempt and sanctions was denied since Rule 7062 did not impose 10-day waiting period on creditor before repossession.
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In re Clarke

Debtor's bankruptcy case was reinstated on January 24, 2006. Debtor filed a suggestion of bankruptcy with the state court. On February 28, 2006, the state court entered orders denying debtor's objection to a foreclosure sale, and granting the purchaser's request for a writ of possession in foreclosure. On the afternoon of February 28, debtor filed an emergency motion to vacate and/or stay state court order denying his objection to foreclosure.
Ruling: 
Court deemed automatic stay was revived on reinstatement of case and, thus, state court orders denying debtor's objection to foreclosure sale were void.
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