Judge Craig

In re Cotto

Debtors asserted that the calculation of their projected disposable income did not raise a presumption of chapter 7 bankruptcy abuse. The bankruptcy trustee moved to dismiss the debtors' case based on the presumption of abuse under 11 U.S.C.S. § 707 after corrected calculations of the debtors' current monthly income and allowable deductions.
Ruling: 
Case dismissed for abuse after inclusion of large settlement in corrected current monthly income calculation.
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Consumer case opionion summary, case decided on March 12,2010, LexisNexis #0510-026

In re Eurospark Indus.

Debtor jewelry company filed a petition under chapter 11 in 1998, and was allowed to operate its business as a debtor-in-possession. The United States Trustee (UST) filed a motion for an order appointing a chapter 11 trustee, pursuant to 11 U.S.C.S. § 1104(a)(2) and (3). The debtor's largest secured creditor supported the motion; however, the debtor and its sole shareholder opposed the motion.
Ruling: 
Chapter 11 trustee appointed due to conflict of interest on part of debtor in possession's sole shareholder.
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Commercial case opionion summary, case decided on March 03,2010, LexisNexis #0510-034

In re Prusan

The debtor filed a motion for sanctions against his respondent, his judgment creditors and their counsel, pursuant to 11 U.S.C.S. § 362(k) alleging that a letter written to a state court, regarding the debtor having stated he had filed bankruptcy but the bankruptcy appeared not to have been filed on that date, was a willful violation of the automatic stay imposed by § 362(a).
Ruling: 
Letter written to state court by creditor's counsel was not sent in bad faith and not grounds for sanctions.
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Consumer case opionion summary, case decided on March 02,2010, LexisNexis #0510-112

In re Rosenberg

A chapter 11 debtor filed a motion to enter into a proposed stipulation with a creditor pursuant to Fed. R. Bankr. P. 9019 that would extend the deadline for the closing of a transaction in which the debt owed to the creditor would be purchased at a discount. A group of creditors (the other creditors) opposed the motion. The creditor also objected.
Ruling: 
Motion for approval of stipulation to extend time to close transaction denied due to impermissible provisions affecting chapter 11 trustee.
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Consumer case opionion summary, case decided on February 05,2010, LexisNexis #0410-065

In re Copperfield Invs. LLC

A corporation filed a motion seeking authority to commence an adversary proceeding on behalf of a bankruptcy estate of a chapter 11 debtor to recover allegedly fraudulent conveyances from third parties and to assert claims of breach of fiduciary duty, conversion, and unjust enrichment. The corporation's motion was opposed by the plan administrator and others.
Ruling: 
Corporation denied derivative standing to bring adversary proceeding on behalf of estate.
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Commercial case opionion summary, case decided on January 08,2010, LexisNexis #0210-020

In re Wassah

Two debtors filed motions to vacate the orders dismissing each of their respective bankruptcy cases.
Ruling: 
Court refused to vacate dismissal of debtors' cases for failure to file required documentation.
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Consumer case opionion summary, case decided on September 17,2009, LexisNexis #1009-044

E. Armata Inc. v. Parra (In re Parra)

This matter came before the court on the motion of plaintiff creditors for summary judgment on their complaint against defendant debtor, seeking to have the debts owed to them by debtor declared nondischargeable pursuant to 11 U.S.C.S. § 523(a)(4). Additionally, plaintiffs moved to strike debtor's opposition to their motion for summary judgment as untimely filed.
Ruling: 
Trust imposed under Perishable Agricultural Commodities Act was sufficient to establish fiduciary duty on part of debtor.
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Consumer case opionion summary, case decided on September 11,2009, LexisNexis #1009-014

In re PT-1 Communs. Inc.

Debtor corporations filed petitions for relief under chapter 11 of the Bankruptcy Code, and a creditor's agent filed a proof of claim on the creditor's behalf. The bankruptcy court reduced the creditor's claim from $ 5,745,552 to $ 2,526,670, and two years later, the creditor asked for reconsideration. The bankruptcy court denied the creditor's motion for reconsideration, but the district court set aside that judgment and remanded the case.
Ruling: 
Creditor that did not act in a timely fashion in response to debtor's objection was not entitled to relief from reduction of claim.
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Commercial case opionion summary, case decided on August 28,2009, LexisNexis #0909-138

In re Sanders

Debtor filed a petition under chapter 13 of the Bankruptcy Code, and an LLC filed a motion for relief from the stay that was imposed under 11 U.S.C.S. § 362 when the debtor declared bankruptcy, so it could complete an eviction action it had started against the debtor. The debtor opposed the LLC's motion, and she asked the court to reconsider a lift stay order it issued in April 2008 in a prior chapter 13 case, and to enjoin the eviction action.
Ruling: 
Relief from stay granted to allow creditor to complete eviction action against debtor.
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Consumer case opionion summary, case decided on July 24,2009, LexisNexis #0809-110

In re La Stanza Diva Ristorante Inc.

The alleged debtor (AD) disputed the involuntary chapter 11 petition, pursuant to 11 U.S.C.S. § 303(b)(1), filed by the business manager and companies.
Ruling: 
Involuntary case dismissed as petition was not supported by requisite number of creditors with undisputed claims.
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Commercial case opionion summary, case decided on April 10,2009, LexisNexis #0609-071

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