Judge Drake, Jr.

In re Walker

Petitioner debtors sought to deduct from their current monthly income ("CMI") under 11 U.S.C. § 707(b)(2)(A)(iii) the payments due on their secured debts despite their surrender of the collateral, a residence and vehicle, securing those debts. Respondent trustee objected.
Ruling: 
Debtors were entitled to deduct from their current monthly income the average payment on debts secured by surrendered collateral.
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Brown v. McLain (In re McLain)

Pending before the court were pretrial motions filed by both the debtor and the chapter 7 trustee in three related adversary proceedings. These motions were: (1) the debtor's motion for an expedited hearing for the determination of pre-trial issues; (2) the trustee's motion for contempt and to compel production of the debtor's tax records; (3) the trustee's motion for entry of a pre-trial order; and (4) the debtor's motion to open default.
Ruling: 
Trustee's motion to compel production of certain tax returns was granted to see if any tax refunds or loss carryovers were not turned over to the estate.
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R&L Dist. Inc. v. MacPherson (In re MacPherson)

Plaintiff creditor filed an adversary proceeding against defendant debtor seeking a determination that the debt owed to him, which resulted from a personal guarantee of debts owed by corporations owned or controlled by the debtor, was nondischargeable pursuant to 11 U.S.C. § 523(a)(2), (a)(4) and (a)(6). The parties filed cross-motions for summary judgment only as to the section 523(a)(2) claim.
Ruling: 
Court deemed debt dischargeable since creditor did not establish causal connection between debtor's personal guarantee of debt and alleged false representation.
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Cliftondale Oaks LLC v. Silver Lake Enters. LLC (In re Cliftondale Oaks LLC)

Debtor objected to creditor's proof of claim and sought disallowance of the portion of the claim that represented default interest and late charges. The debtor argued that the default interest and late charges constituted an unreasonable penalty. The debtor also asserted that the payment of default interest and late charges would be inequitable to the debtor's other equity holders.
Ruling: 
Creditor was entitled to default interest as reasonable fees but was not entitled to double recovery by also charging late fees.
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In re Allied Holdings Inc.

Debtors, who had filed voluntary petitions under chapter 11, filed a motion for approval of a key employee retention program ("KERP") pursuant to 11 U.S.C. § 363(b). The KERP was supported by the official committee of unsecured creditors and the debtors'postpetition lenders but opposed by a union committee and the U.S. trustee.
Ruling: 
Court provided that it would approve a key employee retention program with certain amendments to the program since the debtors had a sound business reason for proposing the program.
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In re Dan River Inc.

Several financial advisors filed an application for compensation in a bankruptcy case. A debtor and an official committee of unsecured creditors objected to the application.
Ruling: 
Financial advisors'application for compensation was granted with no fee reduction.
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Rutherford v. Auto Cash Inc. (In re Rutherford)

Plaintiffs, debtors, sought sanctions against defendant creditor pursuant to 11 U.S.C. § 362(h). The debtors contended that the creditor willfully violated the automatic stay when it refused to turn over a vehicle, which the creditor repossessed prior to the filing of the petition. The creditor argued that before turning over the vehicle, it was entitled to a court order determining that the creditor's interest in the vehicle was adequately protected.
Ruling: 
Sanctions for willful violation of the automatic stay were imposed on a creditor who repossessed a vehicle prior to the debtor's filing and refused turnover without a court order.
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Stephens v. Park Villas Homeowners Assn (In re Stephens)

Debtors, a husband and wife, filed a motion to avoid a lien in a bankruptcy proceeding. Respondent homeowners association objected to the motion.
Ruling: 
Debtors were allowed to avoid a judicial lien because it impaired an exemption to which the debtors would have been entitled in the absence of any liens.
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In re Kenard

Movant deed holder filed a motion to validate a foreclosure sale in a bankruptcy proceeding.
Ruling: 
Debtor's case was dismissed and the court validated a foreclosure sale since the debtor filed two chapter 13 petitions in bad faith by accepting property title and then immediately filing to try to stop foreclosure.
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In re Bush

The debtor filed a notice of appeal of an order entered by bankruptcy court (the lift stay order), which denied the debtor's motion for recusal and granted the motion for relief from the automatic stay filed by the creditor. The debtor filed the current motion seeking a stay of the lift stay order pending the resolution of his appeal.
Ruling: 
Debtor failed to establish a likelihood of success on the merits to obtain a stay pending the resolution of the debtor's appeal of a lift stay order.
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