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northern district of new york

In re Ellis

Ruling
Confirmation of chapter 12 plan that was entirely speculative denied on feasibility grounds.
Procedural posture

The court conducted an evidentiary hearing on confirmation of the debtor's contested, second amended chapter 12 plan. A secured creditor and the Trustee objected to confirmation. The secured creditor filed a motion for relief from the automatic stay pursuant to 11 U.S.C.S. § 362(d)(1) and (2).

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Consumer opinion summary, case decided on July 03, 2012 , LexisNexis #0712-113

In re Moore

Ruling
Excusable neglect was not valid basis for extension of time to file late proof of claim.
Procedural posture

A creditor which held a judgment against a bankruptcy debtor asserted that the creditor's failure to file a proof of claim was the result of excusable neglect. The creditor moved for leave to file a late proof of claim and also asserted that the debtor's unsecured debt exceeded the debt limit for eligibility for chapter 13 bankruptcy relief.

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Consumer opinion summary, case decided on April 10, 2012 , LexisNexis #0512-032

In re Snyder

Ruling
Confirmation denied as debtor could not surrender one parcel of real property and cram down claim secured by others.
Procedural posture

This matter came before the court for an evidentiary hearing on the confirmation of debtors' amended chapter 13 plan, which drew a creditor's objection.

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Consumer opinion summary, case decided on April 02, 2012 , LexisNexis #0412-136

In re Juliano

Ruling
Damages awarded for creditor's violation of stay by withdrawing installment payments from debtor's account.
Procedural posture

The chapter 13 debtors filed a motion for sanctions and attorneys' fees pursuant to 11 U.S.C.S. § 362(k) for a creditor's alleged willful violation of the automatic stay. The creditor was properly served with the motion. An order granting a motion on default was issued.

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Consumer opinion summary, case decided on March 02, 2012 , LexisNexis #0312-114

Woddard v. Gatson (In re Bianchi Indus. Servs. LLC)

Ruling
Funds deposited in state court by contractor of which debtor was subcontractor were not property of the estate.
Procedural posture

Plaintiff bankruptcy trustee brought an adversary proceeding against defendants, a creditor and a clerk of a state court, seeking turnover of funds deposited in the state court by a contractor of which the debtor was a subcontractor, but the creditor which in turn performed subcontract work for the debtor claimed the funds as due from the debtor to the creditor. The creditor moved for judgment on the pleadings.

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Commercial opinion summary, case decided on February 23, 2012 , LexisNexis #0312-128

In re Dejoy

Ruling
Case ordered converted or dismissed for presumption of abuse absent special circumstances.
Procedural posture

The U.S. Trustee (UST) filed a motion to dismiss the debtors' chapter 7 case for abuse under 11 U.S.C.S. § 707(b)(1) based upon a presumption of abuse under § 707(b)(2) and the totality of the circumstances under § 707(b)(3).

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Consumer opinion summary, case decided on November 18, 2011 , LexisNexis #1211-089

In Wiltsie

Ruling
Funds in account traceable to exempt prepetition wages were not subject to turnover despite comingling with nonexempt tax refunds.
Procedural posture

A bankruptcy trustee moved to compel a bankruptcy debtor to turn over to the trustee the amount in the debtor's checking account on the date of the debtor's bankruptcy petition which the debtor did not claim as exempt. The debtor then filed amended schedules claiming the entire amount in the account as exempt under state law as wages earned within 60 days prior to the petition.

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Consumer opinion summary, case decided on November 04, 2011 , LexisNexis #1211-016

Algonquin Power Income Fund v. Christine Falls of N.Y. Inc.

Ruling
Claim against proceeds of engineering malpractice judgment based on security interest predating the judgment properly disallowed.
Procedural posture

Chapter 11 debtors filed an adversary proceeding in the bankruptcy court seeking a declaration that creditors did not have a security interest in an escrow. The bankruptcy court granted summary judgment for the debtors, and the district court affirmed. The United States Court of Appeals for the Second Circuit vacated and remanded.

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Commercial opinion summary, case decided on October 25, 2011 , LexisNexis #0112-103

Onteroa Assocs. v. Village of Fleischmanns (In re Onteora Assocs.)

Ruling
Tax foreclosure in which village obtained title postpetition was not avoidable.
Procedural posture

Plaintiff bankruptcy debtor brought an adversary proceeding against defendant village alleging that a pre-petition in rem tax foreclosure proceeding by the village against the debtor's property was avoidable as a fraudulent transfer under 11 U.S.C.S. § 548 based on the village providing less than reasonably equivalent value for the property. The debtor moved for summary judgment.

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Commercial opinion summary, case decided on August 11, 2011 , LexisNexis #1111-052

In re Menton

Ruling
Debtor's attorney sanctioned due to twice failing to submit timely plan, fee irregularities and filing of dismissal notice without notifying clients.
Procedural posture

The court entered an order to show cause directed to the attorney for Chapter 13 debtors as to why he should not be sanctioned and referred to the Chief Judge of the District for discipline, including consideration of being barred from practice in the Northern District of New York.

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Consumer opinion summary, case decided on May 24, 2011 , LexisNexis #0611-139