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eastern district of new york

In re Munteanu

Ruling
Dismissal by bankruptcy court pursuant to notice of potential for dismissal in conference order vacated.
Procedural posture

Appellant debtor sought review of a bankruptcy court's order dismissing the debtor's chapter 11 case sua sponte at a status conference.

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opinion summary, case decided on June 28, 2007 , LexisNexis #0807-052

In re Munger

Ruling
Unemployment compensation properly excluded from calculation of debtors'current monthly income.
Procedural posture

Debtors, a husband and wife, filed a petition for relief under chapter 7, and the U.S. Trustee filed a motion to dismiss the case, pursuant to 11 U.S.C. § 707(b), to extend the time for filing objections to the debtors'discharge under 11 U.S.C. § 727. The debtors opposed the trustee's motion.

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opinion summary, case decided on June 21, 2007 , LexisNexis #0707-076

Burdick v. OLeary (In re OLeary)

Ruling
Estate did not have interest in property acquired pursuant to divorce decree that was not entered within 180 days of petition date.
Procedural posture

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant debtor seeking to avoid an alleged transfer as fraudulent. The debtor moved to dismiss. At issue was whether the debtor's bankruptcy estate included an interest in property owned by his wife whom he sued for divorce less than 180 days after the filing of his bankruptcy petition.

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opinion summary, case decided on June 18, 2007 , LexisNexis #0707-099

In re Colgate

Ruling
Case dismissed where debtor understated income and overstated expenses.
Procedural posture

A trustee sought dismissal of a debtor's chapter 7 bankruptcy petition under 11 U.S.C. § 707(b)(1) or (b)(3).

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opinion summary, case decided on May 31, 2007 , LexisNexis #0707-109

Rupp v. Elmasri (In re Elmasri)

Ruling
Trustee could pay off liens with proceeds of sale of homestead even if impairment of exemption resulted.
Procedural posture

After debtor filed a chapter 7 petition, plaintiff, who was his ex-wife, and intervenor, a former law guardian appointed in connection with debtor's state court matrimonial action, sought payment of judgments against debtor from $50,000 that constituted debtor's homestead exemption under state law and was expected as proceeds from the sale of his residence. The status of such claims under 11 U.S.C. § 522(c) was at issue.

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opinion summary, case decided on May 24, 2007 , LexisNexis #0707-024

Yash Raj Films (USA) Inc. v. Akhtar (In re Akhtar)

Ruling
Judgment for copyright infringement involved willful and malicious conduct by debtor and was nondischargeable.
Procedural posture

Plaintiff creditor filed a motion for summary judgment on its complaint against plaintiff chapter 7 debtor, which sought a determination that the debt arising out of a judgment entered in a federal copyright infringement action against the debtor was nondischargeable under 11 U.S.C. § 523(a)(6). The debtor filed a cross motion for summary judgment.

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opinion summary, case decided on May 17, 2007 , LexisNexis #0707-063

In re Lukach

Ruling
Creditor sanctioned for willfully sending payment demands to debtor for nearly one year after receiving notice of debtor's bankruptcy.
Procedural posture

Debtor, an individual who filed a chapter 13 proceeding, moved for an order imposing sanctions against defendant creditor for its violation of the automatic stay imposed pursuant to 11 U.S.C. § 362(h). At issue was whether sanctions were properly imposed and, if so, in what amount.

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opinion summary, case decided on May 08, 2007 , LexisNexis #0607-125

Official Committee of Unsecured Creditors of Norstan Apparel Shops Inc. v. Lattman (In re Norstan Apparel Shops Inc.)

Ruling
S-Corp distributions to shareholders did not qualify under safe harbor provision as they did not involve publicly traded securities of impact the public securities market.
Procedural posture

Defendants filed a motion to dismiss the complaint filed by plaintiff, chapter 11 debtor's official committee of unsecured creditors, which alleged that certain payments made to defendants by debtor were constructive fraudulent conveyances to defendants pursuant to 11 U.S.C. § 544 and N.Y. Debt. & Cred. Law §§ 273, 274 and 275, and that defendants breached their fiduciary duty to debtor.

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opinion summary, case decided on March 30, 2007 , LexisNexis #0507-061

New York v. Suarez (In re Suarez)

Ruling
Judgment lien based on debtor's fiduciary fraud under statutory trust involving misuse of collected health club fees was nondischargeable.
Procedural posture

Plaintiff State, on behalf of its citizens, brought an adversary proceeding against defendant bankruptcy debtor, alleging that a debt for restitution arising out of a consent order and judgment against the debtor was nondischargeable under 11 U.S.C. § 523(a)(2)(A) and (a)(4) based on the debtor's fraud and fiduciary defalcation. The bankruptcy court conducted a trial.

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opinion summary, case decided on March 23, 2007 , LexisNexis #0607-025

Nosek v. Ameriquest Mortg. Co. (In re Nosek)

Ruling
Debtor entitled to actual damages for emotional distress and punitive damages due to creditor's failure to properly account for plan payments.
Procedural posture

On remand from the district court, the court was directed to reconsider its prior decision, which held that creditor was liable to chapter 13 debtor for violations of the Massachusetts Consumer Protection Act (Chapter 93A) and awarded debtor $250,000 in emotional distress damages for a breach of the implied covenant of good faith and fair dealing.

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opinion summary, case decided on March 06, 2007 , LexisNexis #0407-103