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northern district of new york

In re Nichols

Ruling
Involuntary conversion from chapter 12 to chapter 7 denied as debtor's transfer to LLC appeared to be a legitimate estate planning move.
Procedural posture

After a debtor filed an individual, bare bones voluntary petition for Chapter 12 relief, a creditor who was a successor in interest to a bank sought conversion of the debtor's Chapter 12 case to one under Chapter 7 pursuant to 11 U.S.C.S. § 1208(d).

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Consumer opinion summary, case decided on August 31, 2010 , LexisNexis #1010-060

In re Reid

Ruling
Pro se debtor's third case in six years dismissed for bad faith with bar on stay in any future filing.
Procedural posture

The chapter 13 trustee filed a motion to dismiss the pro se debtor's case, his third filing in six years, for unreasonable delay that was prejudicial to creditors.

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Consumer opinion summary, case decided on August 02, 2010 , LexisNexis #0910-100

Bruno Mach. Corp. v. Troy Die Cutting Co. (In re Bruno Mach. Corp.)

Ruling
LLC and owner that had close relationship with debtor's predecessor were "insiders" whose transfer from debtor could be avoided.
Procedural posture

Plaintiff reorganized chapter 11 debtor filed an adversary proceeding against defendants, a die cutting company ("LLC") and the LLC's owner, seeking a determination that transfers its predecessor made to the LLC were preferential transfers or fraudulent conveyances that could be avoided under 11 U.S.C.S. §§ 544, 547, and 548, and N.Y. Debt. & Cred. Law §§ 273-276.

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Commercial opinion summary, case decided on June 09, 2010 , LexisNexis #0810-092

In re Bartelini

Ruling
Social Security income properly excluded from debtor's income calculations.
Procedural posture

Debtors filed separate petitions under chapter 13, and a trustee was appointed to administer their bankruptcy estates. The trustee filed objections to plans the debtors proposed for repaying their creditors, claiming that the plans could not be confirmed under 11 U.S.C.S. § 1325(b)(1)(B) because the debtors had not committed all of their projected disposable income to repay debts they owed to unsecured creditors.

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Consumer opinion summary, case decided on June 02, 2010 , LexisNexis #0910-001

In re Morris

Ruling
Stay lifted to allow creditor to liquidate, but not enforce, its claim.
Procedural posture

Before the court was a creditor's motion for an order (1) lifting the automatic stay pursuant to 11 U.S.C.S. § 362(d)(1) to allow it to proceed with certain state court litigation, (2) waiving the 14-day stay imposed by Fed. R. Bankr. P. 4001(a)(3) upon entry of an order granting a motion for relief from stay, and (3) extending its time to object to discharge pursuant to Fed. R. Bankr. P. 4004(b). Debtors filed an Opposition.

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Consumer opinion summary, case decided on May 27, 2010 , LexisNexis #0910-039

In re Glenn

Ruling
The 50/50 Refund Rule applied to cash exemption in tax refund.
Procedural posture

Before the court for decision in two cases filed under chapter 7 Code were objections filed by the chapter 7 Trustee pertaining to debtors' claim of a cash exemption in their respective income tax refunds.

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Consumer opinion summary, case decided on May 19, 2010 , LexisNexis #0810-022

In re Albert Lindley Lee Mem. Hosp.

Ruling
State's reimbursement claim for unemployment insurance compensation benefits was an excise tax entitled to priority.
Procedural posture

Debtor filed an Objection to Claim No. 179 filed by a claimant, the New York State Department of Labor, Unemployment Insurance Division.

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Commercial opinion summary, case decided on May 07, 2010 , LexisNexis #0810-047

Economic Dev. Growth Enters. Corp. v. McDermott (In re McDermott)

Ruling
Debtor's officer's transfer from one corporation to another of which he was also an officer was not a breach of fiduciary duty and did not cause intentional injury.
Procedural posture

Plaintiff creditors brought an adversary proceeding seeking a denial of discharge of a debt incurred by defendant debtor pursuant to 11 U.S.C.S. § 523(a)(4) and (a)(6).

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Consumer opinion summary, case decided on May 04, 2010 , LexisNexis #0810-048

McCarthy v. Nandallal (In re Nandallal)

Ruling
Discharge revoked due to debtor's failure to report receipt of or surrender of post petition note payments.
Procedural posture

Chapter 7 trustee brought this adversary proceeding against defendant debtor to revoke his discharge pursuant to 11 U.S.C.S. §§ 727(d)(1) and (d)(2).

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Consumer opinion summary, case decided on May 03, 2010 , LexisNexis #0810-061

In re Adirondack Timber Enter.

Ruling
Bank not entitled to repossess vehicles in which it did not hold a security interest.
Procedural posture

Debtor filed a petition under chapter 11 of the Bankruptcy Code and operated its business of planting, maintaining, and selling evergreen trees as a debtor-in-possession. Movant creditors, a Delaware corporation and its subsidiary, a federal savings bank, filed a motion seeking relief under 11 U.S.C.S. § 362(d) from the stay that was imposed when the debtor declared bankruptcy. The debtor opposed the motion.

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Commercial opinion summary, case decided on April 28, 2010 , LexisNexis #0710-109