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1st circuit

Fields Station LLC v. Capitol Food Corp. (In re Capitol Food Corp.)

Ruling
Potential loss of lease that would have eliminated chances for reorganization provided grounds for bona fide chapter 11 petition.
Procedural posture

Appellant, the corporate owner of commercial premises upon which appellee debtor sought to reorganize under chapter 11 and reopen as a food market, challenged, on appeal of the District Court for the District of Massachusetts'intermediate affirmance, the judgment of the bankruptcy court which denied the owner's motion to dismiss the chapter 11 petition on the ground that it was not filed in good faith.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on June 06, 2007 , LexisNexis #0707-009

Schweitzer v. Schweitzer (In re Schweitzer)

Ruling
Debtor's hold harmless agreement with former spouse was incurred in connection with divorce or separation and nondischargeable.
Procedural posture

Plaintiff, a chapter 7 debtor's ex-husband, filed an adversary proceeding against debtor and sought summary judgment that her obligation under a separation agreement to hold him harmless on joint mortgage indebtedness was nondischargeable per 11 U.S.C. § 523(a)(15) and that a hold harmless obligation with respect to the parties'credit cards also included in that agreement was nondischargeable under both 11 U.S.C. § 523(a)(2)(A) and (a)(15).

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opinion summary, case decided on June 04, 2007 , LexisNexis #0707-005

In re Falcone

Ruling
Case dismissed where debtor requested temporary waiver and received credit counseling two weeks after petition date for failure to make sufficient effort to comply prepetition.
Procedural posture

A debtor filed a petition under chapter 13, and a corporation filed a motion to dismiss the petition, claiming that the debtor failed to comply with 11 U.S.C. § 109.

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opinion summary, case decided on May 31, 2007 , LexisNexis #0807-004

Vickers v. Hurley (In re Hurley)

Ruling
Discharge denied due to debtor's undisclosed transfer of business assets to LLC he controlled 30 days prior to petition date.
Procedural posture

Plaintiff creditor filed a complaint against defendant chapter 7 debtor, seeking a determination that the debtor was not entitled to a discharge pursuant to 11 U.S.C. § 727(a)(2), (a)(3), (a)(4) and (a)(5).

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opinion summary, case decided on May 15, 2007 , LexisNexis #0707-068

Braunstein v. Gateway Mgmt. Servs. (In re Coldwave Sys. LLC)

Ruling
Security interest in patent perfected withing 90 days of petition date was avoidable.
Procedural posture

Plaintiff chapter 7 trustee initiated an adversary proceeding against defendant creditor to avoid, pursuant to 11 U.S.C. § 547(b), a security interest that the creditor claimed in a certain patent.

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opinion summary, case decided on May 15, 2007 , LexisNexis #0607-131

Hermosilla v. Hermosilla (In re Hermosilla)

Ruling
Postpetition debt arising out of postpetition events was not affected by discharge.
Procedural posture

The matter before the court was the motion for summary judgment of plaintiff, debtor's stepmother, on the count which she alleged under 11 U.S.C. § 523(a)(6) based upon fraudulent transfer of property from her ex-husband to debtor, her stepson. Debtor cross-moved for summary judgment.

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opinion summary, case decided on April 19, 2007 , LexisNexis #0607-033

In re OBrien

Ruling
Postpetition fee award in post-dissolution proceeding was a domestic support obligation not subject to stay.
Procedural posture

The debtor's former wife filed a motion relief from the automatic stay under 11 U.S.C. § 362 so that she could collect a prepetition fee award issued in favor in post-divorce litigation. The debtor opposed the motion.

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opinion summary, case decided on April 17, 2007 , LexisNexis #0807-075

In re OBrien

Ruling
Legal fees accrued in defending debtor in support proceeding was not a nondischargeable domestic support obligation.
Procedural posture

A debtor's former divorce lawyer filed a motion for relief from the automatic stay concerning a prepetition fee award issued in post-divorce litigation between the debtor and his former wife. The debtor opposed the motion.

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opinion summary, case decided on April 17, 2007 , LexisNexis #0607-001

Eastern Savings Bank v. LaFata (In re LaFata)

Ruling
Banktuptcy court properly bifurcated mortgage claim secured by two lots where home was mistakenly built on dividing property line.
Procedural posture

Before the court were two appeals. In the first, appellant bank challenged an order of the District Court for the District Court of Massachusetts which allowed the bifurcation of appellee debtor's chapter 13 claims. The bank also appealed an order of the Bankruptcy Appellate Panel of the First Circuit (Panel) which denied its Fed. R. Civ. P. 60(b) motion seeking reconsideration of three orders decided in the debtor's favor.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on April 03, 2007 , LexisNexis #0507-068

Desmond v. Baker (In re McDonnell)

Ruling
Legal fees paid by debtor from proceeds of unauthorized postpetition sale of residence were recoverable by trustee.
Procedural posture

Plaintiff, a chapter 7 trustee, sued defendant, counsel to debtor, pursuant to 11 U.S.C. § 542(a) for $1,000 that he received from debtor on account of legal fees allegedly owed for legal services, which payment was made from the proceeds of debtor's postpetition but unauthorized sale of her residence while a chapter 13 was pending. Cross-motions for summary judgment were filed.

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opinion summary, case decided on March 30, 2007 , LexisNexis #0507-022