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Judge Bailey

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

Reid v. Wells Fargo Bank

Among other matters in her Complaint in this adversary proceeding, plaintiff chapter 13 Trustee, exercising her "strong arm power" under 11 U.S.C.S. § 544(a)(3), sought to avoid the mortgage held by defendant creditor on debtors' residence. On the same basis, she also objected in Count II to the creditor's proof of claim insofar as it claimed secured status. The creditor sought summary judgment on Counts I, II, III, IV.
Ruling: 
Trustee could not exercise "strong arm power" to avoid mortgage due to terms of confirmation order.
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Consumer case opionion summary, case decided on October 10,2012, LexisNexis #1112-021

In re Angelo

After the ex-wife of a chapter 13 debtor won a state court judgment holding him in contempt for his failure to comply with certain orders made in the parties' divorce, debtor moved the court to vacate the judgment on the ground that it was entered in violation of the automatic stay in 11 U.S.C.S. § 362. A central issue was whether the contempt order related to a "domestic support obligation" (DSO) within the meaning of 11 U.S.C.S. § 101(14A).
Ruling: 
Postpetition contempt order for debtor's failure to comply with domestic support order was not subject to stay.
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Consumer case opionion summary, case decided on September 27,2012, LexisNexis #1212-040

In re Charles St. African Methodist Episcopal Church of Boston

Movant, a creditor bank, filed a motion under 11 U.S.C.S. § 1112(b)(1), to dismiss the case on the basis that the debtor church was not an eligible chapter 11 debtor under 11 U.S.C.S. § 109(d), because it was a trust.
Ruling: 
Debtor church was not a trust and was eligible for chapter 11 relief.
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Commercial case opionion summary, case decided on September 11,2012, LexisNexis #1012-036

In re Charles St. African Methodist Episcopal Church of Boston

A chapter 11 debtor filed a motion under 11 U.S.C.S. § 1126(e) to designate the votes cast by a secured creditor against the debtor's plan of reorganization and, by virtue of the designation, to disregard the objections to confirmation of the plan.
Ruling: 
Motion to designate votes by secured creditor against plan and disregard objections denied.
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Commercial case opionion summary, case decided on September 11,2012, LexisNexis #1012-061

In re Rios

Debtor endeavored to make a second attempt to reorganize, this time under chapter 13 of the Bankruptcy Code. A creditor filed a Motion for Relief from Stay. The matter at issue concerned the eligibility of debtor to reorganize under chapter 13 pursuant to 11 U.S.C.S. § 109(e). The court conducted a non-evidentiary hearing regarding debtor's eligibility.
Ruling: 
Case dismissed for unsecured debt in excess of limits once undersecured portion of secured claim was considered.
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Consumer case opionion summary, case decided on August 21,2012, LexisNexis #0912-036

Oriel v. Alexander (In re Alexander)

Plaintiffs, creditors holding a $135,000 state court default judgment against debtors 1 and 2, the owners of a renovation business that plaintiffs had hired to perform work in their home, asked the court to determine that the judgment was properly excepted from discharge by 11 U.S.C.S. § 523(a)(2)(A) or (B). Debtors opposed the claims and filed counterclaims.
Ruling: 
Judgment against debtor home renovators was nondischargeable only to extent representing payment not put to specified use.
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Consumer case opionion summary, case decided on July 23,2012, LexisNexis #0812-080

In re Darden

Chapter 13 trustee filed a motion for turnover of certain settlement funds and a motion to dismiss the debtor's chapter 13 case. The debtor filed a motion to dismiss the Chapter 13 case pursuant to 11 U.S.C.S. § 1307(a).
Ruling: 
Voluntary dismissal granted after payment of full dividend to general unsecured creditors with excess undisbursed funds ordered returned to debtor.
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Consumer case opionion summary, case decided on May 25,2012, LexisNexis #0612-100

In re PBBPC Inc.

The buyer of the debtor's assets in a court-authorized sale free and clear of all interests under 11 U.S.C.S. § 363(b) and (f) moved for enforcement of the sale order against the Massachusetts Department of Workforce Development, Division of Unemployment Assistance (DUA), claiming that the sale order was free and clear of the debtor's experience rate and contribution rate as those terms were defined in Mass. Gen. Laws ch. 151A, § 14.
Ruling: 
Sale order was free and clear of any interest of state unemployment agency.
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Commercial case opionion summary, case decided on February 27,2012, LexisNexis #0312-076

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