Judge Bailey

In re Kramer

A chapter 13 trustee objected to confirmation of the debtors' plan on the grounds that the plan failed to direct all available projected disposable income to payment of creditors and on the grounds that they understated their projected disposable income and consequently, the plan did not satisfy the best efforts test of 11 U.S.C.S. § 1325(b)(1)(B).
Ruling: 
Chapter 13 debtor's deduction for payments on second mortgage to be treated as unsecured had to be excluded from projected disposable income calculation.
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Consumer case opionion summary, case decided on July 12,2013, LexisNexis #0813-068

Murphy v. Felice (In re Felice)

Defendant chapter 7 debtor filed a motion for determination that his beneficial interest in a family trust, which owned certain real property, was not property of the bankruptcy estate by virtue of a spendthrift clause. Plaintiff chapter 7 trustee filed a motion for summary judgment that argued that the spendthrift clause in the trust was unenforceable as to the debtor's creditors under Massachusetts law because the trust was self-settled.
Ruling: 
Debtor's interest in family trust with spendthrift clause was not property of the estate.
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Consumer case opionion summary, case decided on June 12,2013, LexisNexis #0713-020

In re Cranney

United States Trustee (UST) moved under 11 U.S.C.S. § 1112(b) to convert the joint chapter 11 case of debtors for cause.
Ruling: 
Chapter 11 trustee appointed in case due to diminution of estate.
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Consumer case opionion summary, case decided on May 30,2013, LexisNexis #0713-027

Bolton v. Kenneally (In re Kenneally)

In an adversary proceeding, plaintiff law firm sought a determination that a debt for legal fees owed to the firm for its representation of defendant debtor during the latter's divorce proceeding was excepted from discharge. The firm contended that the debt was excepted from discharge under 11 U.S.C.S. § 523(a)(2)(A) as a debt arising from false representations and false pretenses.
Ruling: 
Debt to debtor's divorce attorney was nondischargeable due to false representation of intention to honor promise to pay fees.
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Consumer case opionion summary, case decided on May 24,2013, LexisNexis #0613-089

Follo v. Morency (In re Morency)

Creditors sought a determination that their claim against chapter 7 debtor was excepted from discharge under 11 U.S.C.S. § 523(a)(2)(A) and (B), and (a)(6), on the basis of the issue- preclusive effect of a Vermont judgment in favor of creditors and against debtor for common-law fraud and violations of the Vermont Consumer Fraud Act.
Ruling: 
Judgment claim by purchaser of debtor's inn, based on fraud, was dischargeable absent necessary findings by state court.
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Consumer case opionion summary, case decided on April 02,2013, LexisNexis #0413-122

Brady-Zell v. Brady-Zell

Attorney filed an adversary proceedings against chapter 7 debtor, seeking a determination that the debtor owed her a debt for legal fees and expenses that was nondischargeable under 11 U.S.C.S. § 523(a)(2)(A). The case was tried to the court.
Ruling: 
Debt owed to divorce lawyer was dischargeable absent evidence of false representation.
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Consumer case opionion summary, case decided on April 02,2013, LexisNexis #0413-124

In re Shaw

Chapter 11 debtors objected to the claim of the IRS for payment of unpaid taxes. The IRS filed a motion for payment of postpetition taxes as administrative expenses. The debtors asked the court to determine under 11 U.S.C.S. § 506(a) that no portion of the IRS's claim was secured.
Ruling: 
Claim for postpetition taxes allowed as administrative expense claim.
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Consumer case opionion summary, case decided on February 20,2013, LexisNexis #0313-042

Damas v. United States (In re Damas)

Ruling: 
Debtor not entitled to recover offset of Social Security payments.
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Consumer case opionion summary, case decided on January 06,2013, LexisNexis #0114-133

Old Republic Natl Title Ins. Co. v. Levasseur (In re Levasseur)

The assignee of a state court judgment against debtor arising out of her wrongful conduct in withdrawing funds from a closed equity line of credit (LOC), sought a determination that the resulting debt was nondischargeable per 11 U.S.C.S. § 523(a). Plaintiff also sought orders sustaining its objections per 11 U.S.C.S. § 522(l) to debtor's claim of exemption and to debtor's motion per § 522(f) to avoid its judicial lien.
Ruling: 
Debt based on debtor's willful withdrawal of funds from closed equity line of credit was nondischargeable.
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Consumer case opionion summary, case decided on October 29,2012, LexisNexis #1112-087

In re Gentile

After the bankruptcy court granted the motion of a chapter 7 trustee to sell the debtors' investment properties over their objections, the debtors appealed the sale orders and the denial of their motion for reconsideration to the Bankruptcy Appellate Panel. Pursuant to Fed. R. Bankr. P. 8005, they filed a motion for a stay pending appeal to prevent the trustee from liquidating the properties.
Ruling: 
Stay pending appeal of sale ordered granted given possible loss of equity on sale and minimal harm in event of stay.
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Consumer case opionion summary, case decided on October 26,2012, LexisNexis #1112-105

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