Judge Davis

In re Trenton Ridge Investors LLC

Claimant bank, a secured creditor, opposed motions by chapter 11 debtors, two limited liability companies, seeking nonconsensual confirmation of proposed chapter 11 plans relating to two apartment complexes on claims that the plans, both of which were "cramdowns," complied with all relevant provisions in 11 U.S.C.S. § 1122, 11 U.S.C.S. § 1123, and 11 U.S.C.S. § 1129. One issue was whether the plans were proposed in good faith and were feasible.
Ruling: 
Confirmation denied where plans including cramdowns lacked feasibility.
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Commercial case opionion summary, case decided on June 23,2011, LexisNexis #1011-130

In re Summer

The United States Trustee (UST) filed a motion to dismiss the Chapter 7 debtors' case for abuse pursuant to 11 U.S.C.S. § 707(b).
Ruling: 
Dismissal for abuse denied where totality of circumstances showed inability to repay debt.
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Consumer case opionion summary, case decided on June 10,2011, LexisNexis #0811-058

Coleman v. American Concrete Inc. (In re Sportsmans Link Inc.)

Plaintiff, the Chapter 7 trustee, sought recovery of various pre-petition transfers made by the debtor to defendant transferees, alleging that they were either preferential or fraudulent under 11 U.S.C.S. §§ 547 and 548. The threshold issue was whether the debtor was insolvent at the time of the transfers, or became insolvent as a result of any of the transfers.
Ruling: 
Transfers could not be avoided where balance sheet and schedules showed debtor was solvent on petition date.
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Commercial case opionion summary, case decided on May 24,2011, LexisNexis #0811-056

In re Eaton

Debtors filed a joint petition under Chapter 13 of the Bankruptcy Code and proposed a plan for repaying their creditors that required them to make payments of $500 per month to the Chapter 13 trustee for 47 months and paid their unsecured creditors one percent of what they were owed. The Chapter 13 trustee filed an objection under 11 U.S.C.S. § 1325(b)(1)(B) to confirmation of the debtors' plan.
Ruling: 
Above-median debtors' 47-month plan rejected as 60-month period was required.
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Consumer case opionion summary, case decided on April 05,2011, LexisNexis #0511-134

Community West Bank v. HSD Partners LLC (In re HSD Partners LLC)

In debtor's chapter 11 case, creditor filed a motion for relief from the automatic stay under 11 U.S.C.S. § 362, and after preliminary hearings were conducted, a trial of all issues was held.
Ruling: 
Creditor not entitled to relief from stay to proceed against property that was necessary to debtor's reorganization.
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Commercial case opionion summary, case decided on April 01,2011, LexisNexis #0611-005

In re Eaton

Debtors proposed a chapter 13 plan which provided for payments for slightly less than four years with a minimal distribution to unsecured creditors. The bankruptcy trustee objected to confirmation of the debtors' plan on the ground that the applicable commitment period for the debtors' plan under 11 U.S.C.S. § 1325(b) was five years.
Ruling: 
Confirmation of above-median debtors' plan denied due to failure to commit to five-year term.
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Consumer case opionion summary, case decided on March 31,2011, LexisNexis #0611-031

AgSouth Farm Credit v. Del-A-Rae Inc. (In re Del-A-Rae Inc.)

A creditor holding a lien on certain real estate belonging to a chapter 11 debtor, sought relief from stay per 11 U.S.C.S. § 362 as to that property on claims that debtor lacked any equity therein and that it was not necessary to an effective reorganization. Debtor challenged the valuation assigned by movant and sought to retain the property.
Ruling: 
Relief from stay granted where debtor lacked equity in property despite potential cushion in event of market rebound.
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Commercial case opionion summary, case decided on March 29,2011, LexisNexis #0611-006

In re Joest

An above-median income debtor filed a petition under chapter 13 and proposed a plan for repaying her creditors. The chapter 13 trustee filed an objection to confirmation of the debtor's plan, pursuant to 11 U.S.C.S. § 1325(b)(1)(B), claiming that it was neither reasonable nor necessary for the debtor, who was single, to claim ownership costs for two vehicles under 11 U.S.C.S. § 1325(b)(3).
Ruling: 
Above-median debtor could claim ownership costs for two vehicles.
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Consumer case opionion summary, case decided on March 17,2011, LexisNexis #0511-031

In re Moore

Debtors, a husband and wife, filed a petition under chapter 13 and proposed a plan for repaying their creditors which bifurcated a secured claim that was filed by a mortgage servicing company. The mortgage servicing company filed an objection to the debtors' plan.
Ruling: 
Modification of a secured claim on multi-use property not barred where mortgage covered both debtor's residence and other income producing property.
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Consumer case opionion summary, case decided on November 18,2010, LexisNexis #1210-133

In re King

Debtors filed a petition under chapter 13, and a bank filed a claim against the debtors' bankruptcy estate, seeking repayment of loans it made that were guaranteed by the male debtor. The debtors sought an order under 11 U.S.C.S. § 502(b)(1) and Fed. R. Bankr. P. 3007(a) which disallowed part of the bank's claim.
Ruling: 
Debtor could not require creditor to repossess collateral rather than seek repayment.
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Consumer case opionion summary, case decided on October 20,2010, LexisNexis #1210-011

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