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southern district of georgia

In re Gillikin

Ruling
Contract rate of interest rather than adjusted prime was proper for creditor's claim based on terms of promissory note.
Procedural posture

A bankruptcy debtor proposed a disclosure statement regarding the debtor's proposed plan which provided for interest on a creditor's over-secured claim based on the prime rate plus risk adjustments. The creditor objected to the disclosure statement and asserted that the creditor was entitled to the higher contract rate of interest set out in promissory notes.

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Consumer opinion summary, case decided on March 03, 2012 , LexisNexis #0312-119

In re Juliano

Ruling
Damages awarded for creditor's violation of stay by withdrawing installment payments from debtor's account.
Procedural posture

The chapter 13 debtors filed a motion for sanctions and attorneys' fees pursuant to 11 U.S.C.S. § 362(k) for a creditor's alleged willful violation of the automatic stay. The creditor was properly served with the motion. An order granting a motion on default was issued.

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Consumer opinion summary, case decided on March 02, 2012 , LexisNexis #0312-114

In re Key

Ruling
Debtor could not incur debt to improve non-estate property.
Procedural posture

Chapter 13 debtors filed a motion to incur debt in order to improve property inherited more than180 days after they filed their bankruptcy petition.

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Consumer opinion summary, case decided on February 02, 2012 , LexisNexis #0312-049

In re Williams

Ruling
Debtor ordered to increase plan payments after 401(k) loan was repaid or to convert or face dismissal.
Procedural posture

The chapter 13 trustee filed an objection to the confirmation of below median debtor's proposed chapter 13 plan, arguing that, at the time the debtor's repayment of a loan to his 26 U.S.C.S. § 401(k) was repaid, he should be required to increase his payments for the benefit of creditors, given his increased disposable income pursuant to 11 U.S.C.S. § 1325(b)(3).

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Consumer opinion summary, case decided on January 23, 2012 , LexisNexis #0612-067

Arsenault v. JPMorgan Chase Bank (In re Arsenault)

Ruling
Bank's refusal to acquire title to property after surrender by debtors did not violate stay.
Procedural posture

Chapter 13 debtors filed an adversary proceeding against defendant bank, seeking a determination that the bank violated 11 U.S.C.S. § 362 and a court order which confirmed the debtor's Chapter 13 bankruptcy plan because it refused to have title to real property transferred from the debtors' names to the bank's name. The bank filed a motion to dismiss for failure to state a claim.

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Consumer opinion summary, case decided on September 19, 2011 , LexisNexis #1011-108

Onteroa Assocs. v. Village of Fleischmanns (In re Onteora Assocs.)

Ruling
Tax foreclosure in which village obtained title postpetition was not avoidable.
Procedural posture

Plaintiff bankruptcy debtor brought an adversary proceeding against defendant village alleging that a pre-petition in rem tax foreclosure proceeding by the village against the debtor's property was avoidable as a fraudulent transfer under 11 U.S.C.S. § 548 based on the village providing less than reasonably equivalent value for the property. The debtor moved for summary judgment.

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Commercial opinion summary, case decided on August 11, 2011 , LexisNexis #1111-052

Bryant v. HSBC Mortg. Servs. (In re Bryant)

Ruling
Relief from stay to foreclose granted where creditor established ownership of mortgage and debtor was in arrears and lacked equity in the property.
Procedural posture

Plaintiff bankruptcy debtor brought an adversary proceeding against defendant mortgage creditor alleging that the creditor did not hold a valid mortgage against the debtor's real property and overstated the amount owed on the debtor's mortgage debt. The creditor moved for relief from the automatic bankruptcy stay to allow foreclosure against the property.

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Consumer opinion summary, case decided on July 11, 2011 , LexisNexis #0811-107

Walton v. HLJ Enters. (In re HLJ Enters.)

Ruling
Accounting firm's application for compensation denied as it was ineligible to provide services to debtor in possession.
Procedural posture

Objectors, the U.S. Trustee (UST) and a creditor, challenged the right of an accounting firm to compensation based on its second application for compensation and also sought an order requiring the firm to disgorge fees previously paid to it. At issue was whether the firm was ineligible to serve as an accountant for debtor in possession (DIP) by reason of 11 U.S.C.S. § 327(a).

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Commercial opinion summary, case decided on June 28, 2011 , LexisNexis #0911-036

Wilmington Plantation Owners Assn v. Foster (In re Foster)

Ruling
Case filed to gain tactical advantage in litigation dismissed as not filed in good faith.
Procedural posture

A homeowners' association and individual homeowners filed a motion to dismiss a debtor's case for cause pursuant to 11 U.S.C.S. § 1112(b)(1) on the grounds that the petition was not filed in good faith. The debtor, an unsecured creditor, and two secured creditors opposed the motion.

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Consumer opinion summary, case decided on June 17, 2011 , LexisNexis #0911-061

In re Summer

Ruling
Dismissal for abuse denied where totality of circumstances showed inability to repay debt.
Procedural posture

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).

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Consumer opinion summary, case decided on June 10, 2011 , LexisNexis #0811-058