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Terlecky v. Crevecor Mortg. Inc. (In re Trahan)

Ruling
Improperly acknowledged mortgage could be avoided.
Procedural posture

Chapter 7 trustee filed an adversary proceeding against defendants, a mortgage company and a mortgage services company, seeking a determination that a mortgage which two debtors signed before they declared bankruptcy was avoidable under 11 U.S.C.S. § 544(a)(3). The mortgage company asked the court to certify a question of law to the Ohio Supreme Court, and the trustee moved for summary judgment on his claim.

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Consumer opinion summary, case decided on March 24, 2011 , LexisNexis #0411-089

In re Flattery

Ruling
Possible wrongful termination recovery was exempt only to extent relating to lost postpetition wages reasonably necessary for support of debtor and dependents.
Procedural posture

A Chapter 7 trustee filed an objection to the debtors' scheduled exemption of a claim that was pending before the Massachusetts Commission Against Discrimination (MCAD) against the debtor wife's former employer for wrongful termination. The debtor wife asserted exemptions under 11 U.S.C.S. § 522(d)(5), (d)(11)(D), and (d)(11)(E).

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Consumer opinion summary, case decided on March 23, 2011 , LexisNexis #0411-115

Rhiel v. Huntington Natl Bank (In re Phalen)

Ruling
Defectively executed mortgage could be avoided.
Procedural posture

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant mortgage lender seeking to avoid lender's asserted mortgage against a bankruptcy debtor's one-half interest in real property pursuant to 11 U.S.C.S. § 544(a)(3) because the mortgage was defectively executed. The trustee moved for summary judgment.

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Consumer opinion summary, case decided on March 04, 2011 , LexisNexis #0311-127

In re Liebfried Aviation Inc.

Ruling
Accountant's fee application denied due to failure to disclose connection to debtor's principal and affiliated entity.
Procedural posture

This matter came before the court for hearing on an accountant's (applicant's) Application for Compensation for Professional Services Rendered From June 1, 2009 through August 31, 2009, with Supplement, and the Chapter 7 trustee's objection thereto.

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Commercial opinion summary, case decided on February 25, 2011 , LexisNexis #0311-107

In re Sarao

Ruling
Trustee could employ attorney also representing creditor where interests in maximizing size of estate were aligned.
Procedural posture

Chapter 7 trustee filed an application under 11 U.S.C.S. § 327(c) to employ an attorney and his law firm as special counsel to represent the trustee in prosecuting a pending adversary proceeding against the debtor's father. The father objected.

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Consumer opinion summary, case decided on February 01, 2011 , LexisNexis #0211-106

In re Seger

Ruling
Chapter 13 debtor was not required to comply with investment and deposit rules for chapter 7 and chapter 11 trustees.
Procedural posture

Debtors filed a petition under Chapter 13 of the Bankruptcy Code, and the Chapter 13 trustee filed a Certificate of Noncompliance and requested dismissal of the debtors' case.

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Consumer opinion summary, case decided on January 24, 2011 , LexisNexis #0311-038

In re DaRosa

Ruling
Relief from stay granted upon reconsideration based on local real estate agent's valuation showing no equity in encumbered property.
Procedural posture

A bank sought relief from stay under 11 U.S.C.S. § 362(d), the court denied the motion for failure to provide an acceptable basis for valuation of the chapter 7 debtor's real property. The bank filed a motion for reconsideration.

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Consumer opinion summary, case decided on November 17, 2010 , LexisNexis #1210-109

McDermott v. FIA Card Servs. (In re McDermott)

Ruling
Creditor's filing of nondischargeability proceeding without intention of going to trial was not actionable.
Procedural posture

Defendants, a creditor, its counsel, and counsel's law firm, moved to dismiss plaintiff debtor's adversary proceeding, which sought damages, costs, and attorneys' fees for harm the debtor alleged he suffered as a result of defendants' commencement of a nondischargeability action without any intention to prosecute that action. Defendants also moved for an award of sanctions and costs in an unspecified amount pursuant to Fed. R. Bankr. P. 9011.

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Consumer opinion summary, case decided on November 08, 2010 , LexisNexis #1210-066

In re Arcadia Enters.

Ruling
Relief from stay granted to allow bank to complete real estate development project.
Procedural posture

Debtor corporation filed a petition under chapter 11, and a savings bank filed a motion for an order granting the bank relief under 11 U.S.C.S. § 362(d)(2) from the stay that was imposed when the debtor declared bankruptcy so it could complete work on a real estate development project. The debtor opposed the motion.

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Commercial opinion summary, case decided on October 27, 2010 , LexisNexis #1210-076

In re Waechter

Ruling
Plan in which debtor proposed to pay disproportionate share of household expenses relative to non-debtor spouse could not be confirmed.
Procedural posture

The standing chapter 13 trustee filed objections to confirmation of the debtor's amended Chapter 13 plan, arguing that the plan failed to provide for the unsecured creditors to receive the debtor's entire projected disposable income, and that the plan is not proposed in good faith.

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Consumer opinion summary, case decided on October 22, 2010 , LexisNexis #1210-030