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northern district of new york

In re Lockenwitz

Ruling
Plan confirmation denied due to impermissible bifurcation of purchase money security interest in "910" vehicle.
Procedural posture

Debtors submitted a plan for confirmation. The successor secured creditor on the debtors' motor vehicle filed an objection to confirmation of the debtors' plan and a response to the trustee's motion to determine value of the collateral.

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Consumer opinion summary, case decided on April 27, 2010 , LexisNexis #0710-097

In re Wesseldine

Ruling
Debtors' attorneys not entitled to fees in excess of initial flat fee.
Procedural posture

In the chapter 13 debtors' proposed plan, movant, the counsel for the debtors, sought to carve out certain services out of the flat fee submitted in its disclosure pursuant to 11 U.S.C.S. § 329(a) and Fed. R. Bankr. P. 2016(b). The chapter 13 trustee filed an objection.

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Consumer opinion summary, case decided on March 08, 2010 , LexisNexis #0510-072

Planavsky v. County of Broome (In re Planavsky)

Ruling
Bankruptcy court lacked jurisdiction to determine state tax debt where debtor had not taken all necessary steps under state law.
Procedural posture

Plaintiff chapter 11 debtor filed an adversary proceeding against defendants, two counties, a city, and various towns, villages, and school districts, seeking a determination under 11 U.S.C.S. § 505 of the amount of real property taxes he owed. Several defendants filed motions to dismiss.

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Consumer opinion summary, case decided on February 17, 2010 , LexisNexis #0410-139

In re Burkhart

Ruling
Reasonable attorneys' fees but not punitive damages awarded for stay violation.
Procedural posture

In a previous order, the court found that a creditor willfully violated the automatic stay imposed by a debtor's chapter 13 bankruptcy proceeding. The court held an evidentiary hearing on the issue of whether the debtor was entitled to an award of actual and punitive damages pursuant to 11 U.S.C.S. § 362(k). On its own motion, the court considered the imposition of sanctions on the debtor's attorney for violation of a scheduling order.

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Consumer opinion summary, case decided on February 09, 2010 , LexisNexis #0410-045

Martyak v. Tioga County (In re Martyak)

Ruling
Chapter 13 debtor's efforts to challenge auction sale of real property to satisfy delinquent real estate taxes denied.
Procedural posture

In this adversary proceeding, plaintiff debtor sought recovery of title to real property and imposition of sanctions against defendants, a county, various county officials, and others involved in the auction sale of real property that had been owned by the debtor.

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Consumer opinion summary, case decided on February 05, 2010 , LexisNexis #0410-011

Scheidelmann v. Henderson (In re Henderson)

Ruling
Claims in nondischargeability proceeding dismissed as insufficiently pled except for claim based on fiduciary defalcation.
Procedural posture

Pro se plaintiffs, creditors who contracted with the debtor for home remodeling, commenced an adversary proceeding against the debtors, raising claims pursuant to 11 U.S.C.S. §§ 523(a)(4), (a)(6), and 727(a)(3), (4)(A), (4)(B), and (6)(A). The debtors moved to dismiss the complaint under Fed. R. Civ. P. 12(b)(6). Alternatively, the debtors moved for a more definite statement.

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Consumer opinion summary, case decided on January 27, 2010 , LexisNexis #0410-017

In re Lincoln Logs Ltd.

Ruling
Funds held in escrow by debtor home manufacturer were not property of the estate.
Procedural posture

Creditors, the putative purchasers of a custom log home from the debtor, filed a motion for turnover of goods and materials for which they had paid the debtor, but which had not been delivered by the debtor to the site where the purchasers were constructing their new residence, and for other relief pursuant to 11 U.S.C.S. § 105. The purchasers had paid the full purchase price, but only received about half of the materials.

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Commercial opinion summary, case decided on January 25, 2010 , LexisNexis #0310-126

In re Borchert

Ruling
Debtor's Vioxx injury sufficiently incurred prepetition for class action proceeds to be property of the estate.
Procedural posture

Debtors' attorney filed a motion requesting a determination by the court that certain funds awarded in connection with the settlement of class action litigation were not property of the debtors' bankruptcy estate under 11 U.S.C.S. § 541.

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Consumer opinion summary, case decided on January 08, 2010 , LexisNexis #0310-034

In re Quintana

Ruling
Objection to proof of claim overruled where creditor held valid lien on debtor's residence.
Procedural posture

A chapter 13 debtor objected to a creditor's proof of claim. The creditor set forth in its objection to the confirmation of the debtor's plan its objection to the debtor's claim of a homestead objection pursuant to N.Y. C.P.L.R. 5206(a)(1).

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Consumer opinion summary, case decided on December 15, 2009 , LexisNexis #0210-049

In re Coxeter

Ruling
Reconsideration of disallowance of claim granted where local counsel engaged by creditor failed to appear due to suspension from practice prior to hearing.
Procedural posture

Bankruptcy debtors objected to a creditor's judgment claim but the creditor failed to appear for the hearing on the objection. The creditor moved pursuant to 11 U.S.C.S. § 502(j) and Fed. R. Bankr. P. 3008 for reconsideration of the order disallowing the creditor's claim by default.

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Consumer opinion summary, case decided on December 10, 2009 , LexisNexis #0110-132