Judge Bailey

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

In re Pires

Objectors, two secured creditors holding mortgages on property of a chapter 13 debtor, opposed confirmation of her proposed plan on the ground that the plan's treatment of their secured claims was improper for various reasons including that it was a "hybrid" plan that was prohibited by 11 U.S.C.S. § 1322 and that even if hybrid plans were permitted, the plan proposed herein nonetheless did not satisfy the criteria for same in In re McGregor.
Ruling: 
Confirmation of "hybrid" plan denied.
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Consumer case opionion summary, case decided on November 07,2011, LexisNexis #1211-024

Agin v. Chambers (In re Ruel)

Plaintiff Chapter 7 trustee sought to avoid under 11 U.S.C.S. § 547(b) and preserve for the estate the transfer by the debtor to a family trust a mortgage on her home to secure payment of a promissory note. Defendants were all siblings of the debtor and at all relevant times were beneficiaries of the trust.
Ruling: 
Mortgage in favor of family trust could be avoided.
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Consumer case opionion summary, case decided on October 12,2011, LexisNexis #1111-029

In re Crossing LLC

A law firm filed an amended application for compensation for its services as counsel for a debtor in possession. The debtor and its sole shareholder opposed the application on numerous grounds, including failures of disclosure and misrepresentations, and asked for disallowance of half the compensation requested and denial of a premium.
Ruling: 
Debtor in possession's counsel's fee application allowed with credits for retainer and subordinated to other administrative and unsecured claims due to pattern of nondisclosure.
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Commercial case opionion summary, case decided on September 16,2011, LexisNexis #1011-132

Kinsella v. Todisco (In re Todisco)

Creditor, who invested his life savings with debtor, filed an adversary complaint seeking to except debts owed to the creditor from discharge under 11 U.S.C.S. § 523(a)(4) and (a)(6), by converting funds that creditor had entrusted to debtor, breach of fiduciary duty, and willful and malicious injury, in the amount of $620,000, representing the funds entrusted and reasonable interest thereon.
Ruling: 
Debt owed to creditor who invested life savings with debtor was dischargeable absent evidence of defalcation, embezzlement or willful and malicious conduct.
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Consumer case opionion summary, case decided on July 15,2011, LexisNexis #0811-081

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