Judge Grossman

Stern v. Molano (In re Devanzo)

Chapter 7 trustee brought an adversary proceeding against defendant co- owner, seeking to sell a debtor's interest in real property free and clear of the co-owner's interest pursuant to 11 U.S.C.S. §§ 541, 542, and 363(h) and to thereafter determine the co-owner's distributive interest in the sale proceeds.
Ruling: 
Trustee's sale of estate property approved where benefit to estate outweighed detriment to co- owner.
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Consumer case opionion summary, case decided on May 03,2010, LexisNexis #0810-044

Pryor v. Fisher (In re Dimino)

Plaintiff, the chapter 7 trustee, brought an adversary proceeding seeking to recover two pre-petition transfers from the debtor to two defendants, transferees of funds in the aggregate amount of $ 55,000, transferred in satisfaction of mechanic's liens the transferees filed against the debtor's real property, which the trustee asserted were legally deficient.
Ruling: 
Transfers in satisfaction of mechanics' liens were made for full consideration and were not avoidable.
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Consumer case opionion summary, case decided on April 21,2010, LexisNexis #0710-055

Pomilio v. MERS (In re Pomilio)

Plaintiff chapter 7 debtors filed a motion for entry of a default judgment in an adversary proceeding they filed against defendants, a nominee for a mortgage company, the mortgage company, and a company that serviced the mortgage, seeking a determination that they were allowed to avoid a second mortgage on their residence under 11 U.S.C.S. § 506(a) and (d).
Ruling: 
Debtor could not avoid valid lien securing allowed claim.
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Consumer case opionion summary, case decided on February 23,2010, LexisNexis #0410-114

In re Rabener

A bankruptcy debtor's plan provided for payment of all of the debtor's projected disposable income, after deductions of expenses, to repayment of unsecured creditors as required by 11 U.S.C.S. § 1325(b)(1), but the bankruptcy trustee asserted that the debtor improperly claimed transportation ownership/lease expenses. The trustee objected to confirmation of the debtor's plan.
Ruling: 
Debtor could not take deduction on vehicles owned free and clear in calculating projected disposable income.
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Consumer case opionion summary, case decided on January 21,2010, LexisNexis #0310-136

Mokuba N.Y. LLC v. Pitts (In re Pitts)

Plaintiff creditor filed this adversary action seeking to have certain debts allegedly owed by the debtor deemed non-dischargeable pursuant to 11 U.S.C.S. § 523(a)(2)(A). The debtor filed a motion alleging that the creditor violated the automatic stay of 11 U.S.C.S. § 362 by proceeding with a state court action against related corporate defendants who were non-debtors.
Ruling: 
Continued prosecution of state court action against non-debtor defendants that was severed from action against debtor did not violate stay.
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Consumer case opionion summary, case decided on December 08,2009, LexisNexis #0110-042

Adams v. Giordano (In re Clarke)

Plaintiff brought an action against defendant, a paralegal preparer of two bankruptcy petitions, asserting violations of 11 U.S.C.S. §§ 110 and 528 in each of the cases. The fundamental issue was whether the preparer's defense that he did not intend that the forms he prepared would be filed without further review by debtors' licensed attorney. The trustee sought fines, sanctions, and an injunction.
Ruling: 
Bankruptcy petition preparer fined and sanctioned for unauthorized practice of law.
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Consumer case opionion summary, case decided on May 31,2009, LexisNexis #0709-074

In re Mendelson

The chapter 13 trustee objected to confirmation of the debtor's chapter 13 plan. The trustee argued, under 11 U.S.C.S. §1325(b)(1)(B), that the debtor's proposed chapter 13 plan did not commit all of the debtor's "projected disposable income" toward repayment of unsecured creditors.
Ruling: 
Debtor could not claim expense for installment payments on vehicle used and paid for exclusively by former spouse.
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Consumer case opionion summary, case decided on March 12,2009, LexisNexis #0509-134

In re FMO Assocs. II LLC

Before the court was a motion by debtor to convert its chapter 7 case to a case under chapter 11 pursuant to 11 U.S.C.S. § 706. The chapter 7 trustee opposed the motion.
Ruling: 
Chapter 7 case converted to chapter 11 in absence of bad faith and to allow for more efficient sale of property.
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Commercial case opionion summary, case decided on February 13,2009, LexisNexis #0409-124

In re Rahman

An above-median income debtor filed a petition under chapter 13 of the Bankruptcy Code and a plan for repaying his creditors. A trustee was appointed to represent the bankruptcy estate, and the trustee filed an objection to confirmation of the debtor's plan, claiming that the debtor was not entitled to take expense deductions on property he planned to surrender and had not filed his plan in good faith.
Ruling: 
Debtor could not include expenses on property intended fro surrender in calculating projected disposable income.
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Consumer case opionion summary, case decided on January 22,2009, LexisNexis #0309-054

In re Almonte

Debtor filed a petition under chapter 13 of the Bankruptcy Code, and a trustee was appointed to represent the bankruptcy estate. The trustee filed an objection to confirmation of the debtor's chapter 13 plan, arguing, inter alia, that the plan could not be confirmed under 11 U.S.C.S. § 1325 because the debtor did not include credit card cash advances he received before he declared bankruptcy as part of his current monthly income (CMI).
Ruling: 
Credit card cash advances did not need to be included in projected disposable income calculation.
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Consumer case opionion summary, case decided on December 08,2008, LexisNexis #0109-063

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