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Judge Feeney

Farley v. Romano (In re Romano)

Creditor, a 50 percent shareholder of a company, filed complaints against chapter 7 debtors, the president and other 50 percent shareholder of the company and his wife, seeking a determination that a debt owed to him or to the company by debtors was nondischargeable pursuant to 11 U.S.C. § 523(a)(2) and (a)(4).
Ruling: 
Debt held nondischargeable due to embezzlement by debtor from company to pay personal expenses.
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Green v. Cornell Univ. (In re Green)

After filing a voluntary chapter 7 petition, plaintiff debtor sued defendant university and education loan companies, seeking a determination that debt arising from various educational loans should have been discharged under 11 U.S.C. § 523(a)(8) because repayment would have imposed an undue hardship upon him. The bankruptcy court conducted a trial.
Ruling: 
Debt was deemed nondischargeable since debtor failed to prove undue hardship.
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In re Tubular Techs. LLC

A bankruptcy debtor was deemed to have rejected its commercial lease after it failed to obtain an order for an extension of time to accept or reject the lease within the time limit set by 11 U.S.C. § 365(d)(4)(B)(i). The debtor appealed the rejection order and moved the bankruptcy court for a stay of the order pending the appeal.
Ruling: 
Debtor's motion for stay pending appeal was denied since debtor had failed to move for extention of time to accept or reject contract within period allowed.
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V2R LLC v. Special Situations Fund IV LLC (In re Schneider)

Plaintiff creditors filed an action against defendant debtor alleging claims of fraud, breach of fiduciary duties, and embezzlement or larceny under 11 U.S.C. § 523(a)(2)(A) and (4). The debtor filed a motion to dismiss the complaint.
Ruling: 
Debtor's motion to dismiss complaint was denied since nondischargeability claim was not barred by res judicata.
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In re Bryant

Debtors filed a motion to hold the IRS in contempt and impose sanctions for violating the discharge injunction of 11 U.S.C. § 524. The IRS moved to quash the debtors'motion.
Ruling: 
Court ordered the IRS to show cause why it should not be held in contempt for violating a discharge injunction by attempting postdischarge to collect trust fund taxes.
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Shabanoff v. Medoff ( In re Shabanoff)

Plaintiff debtor filed a petition for relief under chapter 7. The debtor filed an adversary proceeding against defendant attorney, and others, claiming that they violated the automatic stay imposed pursuant to 11 U.S.C. § 362(a). The attorney sought a motion to dismiss the adversary proceeding or for summary judgment and the debtor filed an opposition and a motion for partial summary judgment.
Ruling: 
Genuine issue remained regarding whether an attorney had knowledge of a filing and thus whether the attorney violated the automatic stay.
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Riley v. Tougas (In re Tougas)

Pending were Cross-Motions for Partial Summary Judgment on Counts I, II, III, XIII of a complaint filed by plaintiff chapter 7 trustee against defendants, debtor individually and as trustee of a family trust, an investment company, and a trust beneficiary. The trustee sought four forms of relief, including a declaration that certain property held by debtor individually or as trustee was property of the estate pursuant to 11 U.S.C. § 541.
Ruling: 
Court deemed a trust res for which a debtor exercised much control to be part of the debtor's estate.
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Paul v. Suffolk Univ. (In re Paul)

Plaintiff debtor filed an adversary proceeding against defendant, a student loan corporation, to obtain a discharge of the debtor's student loan obligation, pursuant to 11 U.S.C. § 523(a)(8), on the grounds that repayment would impose an undue hardship on the debtor and her family. After a trial, the court issued findings of fact and conclusions of law.
Ruling: 
Single mother of three debtor was denied discharge of student loan debt based on undue hardship since the debtor could increase income based on education level, obtain child support, and work with the offered reasonable repayment plan.
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In re Plymouth Rubber Co.

The debtors, two companies that were being jointly administered in bankruptcy proceedings, filed a motion to allow one of the debtors to make payments pursuant to an employee retention plan so that the debtors could pay benefits owed to the employees once they are terminated during the wind-down of the debtor's manufacturing operations. The debtors claimed the expense was entitled to administrative expense priority under 11 U.S.C. § 503(b)(1).
Ruling: 
Court granted the debtors' motion for authority to make payments under the employee retention plan as an administrative claim so that the debtors could make severance payments when they became due.
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In re Penney

The chapter 7 trustee filed an application to employ counsel. Proposed counsel and his firm represented a secured creditor with a claim against the bankruptcy estate. The issue was whether an actual conflict of interest existed with respect to counsel's dual representation of the creditor and the estate.
Ruling: 
Court denied a trustee's application to employ counsel due to an actual conflict of interest in counsel representing a creditor and the estate.
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