Northern District

Board of Tr. Adirondack Carpenters Pension Fund v. Parker (In re Parker)

Plaintiff boards of trustees of employee benefit plans brought an adversary proceeding against defendant bankruptcy debtor, alleging that debts to the plans owed by the debtor as an employer were nondischargeable under 11 U.S.C.S. § 523(a)(4) based on fiduciary defalcation, larceny, or embezzlement. The bankruptcy court conducted a trial.
Ruling: 
Debtor employer's failure to make contributions to employee benefit plans did not render debt nondischargeable as its role was not that of a fiduciary.
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Commercial case opionion summary, case decided on May 07,2008, LexisNexis #0608-046

In re Clave

Debtor filed her chapter 7 petition on November 16, 2007. On January 23, 2008, her husband died, leaving her as the beneficiary of a life insurance policy in the amount of $ 250,000. On January 30, 2008, she filed a motion to convert her case to chapter 13. The trustee opposed the motion and asserted a possessory interest in the policy proceeds. On March 4, 2008, the trustee filed a motion to compel the Debtor to turnover the proceeds.
Ruling: 
Motion to compel turnover of insurance proceeds denied in absence of bad faith and conversion to chapter 13 granted.
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Consumer case opionion summary, case decided on April 28,2008, LexisNexis #0608-112

In re Schneider

Both the chapter 13 trustee and a creditor objected to confirmation of debtors' plan under 11 U.S.C.S. § 1325. At issue was whether debtors were committing all of their "projected disposable income" to make payments to unsecured creditors under the plan.
Ruling: 
Form 22C expenses are solely for calculation of monthly disposable income and should not be used to adjust Schedule I projected disposable income.
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Consumer case opionion summary, case decided on April 28,2008, LexisNexis #0608-124

In re Noeth Corp.

A debtor filed for relief under chapter 11 of the Bankruptcy Code. A law firm, as counsel for the debtor, filed for consideration an application for final compensation, pursuant to 11 U.S.C.S. § 330. The United States trustee objected to the fee application.
Ruling: 
Debtor's attorneys' fees approved with reductions for prepetition services and travel expenses.
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Commercial case opionion summary, case decided on April 24,2008, LexisNexis #0608-109

In re Churco

Special counsel to the chapter 7 Trustee filed an application for fees. A creditor objected.
Ruling: 
Special counsel not entitled to fees for services that went beyond scope of appointment order.
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Consumer case opionion summary, case decided on April 10,2008, LexisNexis #0508-074

In re Marcello

The debtor filed a motion pursuant to 11 U.S.C.S. § 362(c)(3) for an order extending the automatic stay in her chapter 13 case. The motion was brought on by an order that shortened that time. The debtor had filed a previous chapter 13 case which was dismisssed. The creditor that held the debtor's mortgage objected.
Ruling: 
Debtor who filed second case based on significant increase in income entitled to extension of stay provided mortgage payments remained current.
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Consumer case opionion summary, case decided on March 27,2008, LexisNexis #0508-005

In re Lisenko

The chapter 13 Trustee objected to confirmation of the debtor's proposed plan under 11 U.S.C.S. § 1325. At issue was whether the debtor was committing all of her "projected disposable income" under the plan as required by 11 U.S.C.S. § 1325(b)(1)(B) when her "monthly disposable income" as calculated on Official Bankr. Form 22C was approximately one-half the amount of her "monthly net income" reflected on Schedule J.
Ruling: 
Confirmation denied due to unplanned discrepancy between disposable income calculated on Form 22C and not income on Schedule J.
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Consumer case opionion summary, case decided on March 24,2008, LexisNexis #0508-054

In re Brunner

Debtors filed a petition under chapter 13 and a plan for repaying their creditors. The chapter 13 trustee and an unsecured creditor filed objections to confirmation of the debtors'plan, claiming that the plan could not be confirmed under 11 U.S.C. § 1325(b)(1)(B) because the debtors had not dedicated all of their projected disposable income to their plan during the applicable plan period.
Ruling: 
Increase in disposable income during plan period does not require corresponding increase in plan payments.
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Consumer case opionion summary, case decided on December 07,2007, LexisNexis #0108-130

In re McLain

Debtors moved for confirmation of their proposed chapter 13 plan. The chapter 13 trustee and a creditor both filed objections to confirmation on the grounds that the proposed plan failed to devote all of the debtors'"projected disposable income" to be received in the "applicable commitment period"within the meaning of 11 U.S.C. § 1325(b)(1)(B).
Ruling: 
Failure to step up payments after vehicle loans were paid off was not grounds for denial of confirmation.
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Consumer case opionion summary, case decided on October 24,2007, LexisNexis #1107-123

In re Doetsch

After a bankruptcy debtor's chapter 13 plan was confirmed and the debtor made plan payments for almost two years, the debtor received an inheritance and subsequently converted the case to chapter 13. The U.S. Trustee moved for a determination that the inheritance was property of the debtor's chapter 7 estate under 11 U.S.C. § 348(f)(2) because the debtor converted the case in bad faith.
Ruling: 
Debtor's failure to disclose postconversion inheritance was not indicative of bad faith conversion.
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Consumer case opionion summary, case decided on September 12,2007, LexisNexis #1007-097

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