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eastern district of new york

In re Weerawat

Ruling
Debtor who spent substantial portion of estate funds contrary to court order directed to pay $100 per day or face arrest and incarceration.
Procedural posture

The matter came before the court for hearing on the chapter 7 trustee's Second Motion for Contempt by which the trustee sought an order holding debtor in contempt and requesting that debtor be incarcerated for failing to comply with the court's Order of January 4, 2007 directing debtor to turn over $100,000 to the trustee.

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opinion summary, case decided on March 06, 2007 , LexisNexis #0407-071

In re Brown

Ruling
Creditor granted administrative expense for counsel fees due to actions to preserve estate.
Procedural posture

The creditor's counsel objected to the chapter 13 trustee's report and filed a motion for the allowance of an administrative expense for professional services rendered, pursuant to 11 U.S.C. § 503(b)(1)(A).

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opinion summary, case decided on February 13, 2007 , LexisNexis #0307-133

In re Lyons

Ruling
Judicial lien fully impairing debtor's state exemption in homestead equity could be avoided.
Procedural posture

A chapter 7 debtor filed a motion seeking to avoid a creditor's judicial lien on his personal residence pursuant to 11 U.S.C. § 522(f). The creditor opposed the motion.

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opinion summary, case decided on November 22, 2006 , LexisNexis #0107-057

In re Brown

Ruling
Capital gains taxes owed on sale of property were sole responsibility of debtor and not the estate.
Procedural posture

Bankruptcy debtor filed a voluntary chapter 13 petition. The debtor filed a motion for order directing trustee to reserve fund pursuant to 11 U.S.C. § 105(a), in which the debtor sought to have the chapter 13 estate pay capital gains taxes triggered by the postpetition sale of the debtor's interest in rental property. The chapter 13 trustee and a creditor objected to some or all of the motion.

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opinion summary, case decided on November 20, 2006 , LexisNexis #0107-086

Baker v. Somerville Mun. Fed. Credit Union (In re Baker)

Ruling
Collection notices sent by creditor with actual notice were presumptively deliberate violations of stay.
Procedural posture

Plaintiff debtor brought a complaint against defendant lender alleging violation of the automatic stay, 11 U.S.C. § 362, the discharge injunction pursuant to 11 U.S.C. §§ 524 and 105. The matter came before the court for hearing on cross motions for summary judgment.

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opinion summary, case decided on November 20, 2006 , LexisNexis #0107-088

In re Swiatkowski

Ruling
Case dismissed due to debtor's failure to obtain credit counseling or file a timely, legitimate request for exemption.
Procedural posture

The chapter 13 trustee filed a motion to dismiss the debtor's case on the ground that the debtor was not eligible to be a debtor pursuant to 11 U.S.C. § 109(h)(1) because of his failure to comply with the credit counseling requirement. Although other matters were pending, the court's disposition of the motion to dismiss obviated the need to consider these other matters.

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opinion summary, case decided on November 16, 2006 , LexisNexis #0107-072

In re Gindberg

Ruling
Error of debtor's attorney in failing to be aware of credit counseling requirement resulted in dismissal.
Procedural posture

A debtor was directed to show cause why her case should not have been dismissed for failure to comply with the credit counseling requirement imposed by 11 U.S.C. § 109(h)(1) of the Bankruptcy Code.

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opinion summary, case decided on November 13, 2006 , LexisNexis #0107-107

In re Uvaydov

Ruling
Relief from stay granted to allow foreclosure due to debtor's failure to make postpetition mortgage payments.
Procedural posture

Chapter 13 creditor filed a motion pursuant to 11 U.S.C. § 362(d)(1) for relief from the automatic stay to proceed with a mortgage foreclosure on certain real property owned by debtor. Debtor opposed the motion and included in his opposition papers a request for a stay pending appeal under Fed. R. Bankr. P. 8005.

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opinion summary, case decided on October 17, 2006 , LexisNexis #1106-055

Nickless v. Kessler (In re Berman)

Ruling
Challenge to probate court determination of debtor's interest in decedent's estate violated stay.
Procedural posture

Plaintiff chapter 7 trustee sued defendant life estate holder, seeking an order quieting title of certain property in his favor and recovery of the property taxes deferred by defendant. The trustee and defendant moved for summary judgment. The trustee and debtor moved for sanctions against defendant and her attorneys for willful violation of the automatic stay and a declaration that a state probate court order was void ab initio.

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opinion summary, case decided on September 28, 2006 , LexisNexis #1006-120

Kelly v. Sallie Mae Serv. (In re Kelly)

Ruling
Undue hardship discharge of student loan debt denied where debtor did not establish that adverse circumstances would continue or that she had made good faith efforts to repay.
Procedural posture

Plaintiff, a debtor who filed a voluntary petition for relief under chapter 7 of the Bankruptcy Code, commenced an adversary proceeding against defendants, holders of student loans made prepetition to plaintiff, requesting a discharge of those loans pursuant to 11 U.S.C. § 523(a)(8) of the Bankruptcy Code.

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opinion summary, case decided on September 21, 2006 , LexisNexis #1006-130