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In re Calloway

Ruling
Judgment lien avoided as impairing debtor's retroactively applied state homestead exemption.
Procedural posture

The debtor moved, pursuant to 11 U.S.C.S. § 522(f), to avoid judgment liens, including one that a creditor had perfected prior to August 30, 2005. The issue was whether the statutory amendment of N.Y. C.P.L.R. 5206, that increased New York's homestead exemption from $ 10,000 to $ 50,000, had retroactive effect, which would allow the debtor to avoid that judgment lien.

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Consumer opinion summary, case decided on February 16, 2010 , LexisNexis #0410-117

Grano v. Wells Fargo Bank (In re Grano)

Ruling
Chapter 7 debtor could not strip down undersecured mortgage.
Procedural posture

Chapter 7 debtors filed a complaint against defendant creditor to avoid a second mortgage pursuant to 11 U.S.C.S. § 506(a) and (d). The creditor moved to dismiss the complaint for failure to state a cause of action pursuant to Fed. R. Civ. P. 12(b)(6) and Fed. R. Bankr. P. 7012.

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Consumer opinion summary, case decided on January 29, 2010 , LexisNexis #0410-012

In re Daniel-Sanders

Ruling
Expense for luxury automobile conditioned on replacement or assurance that payments would not diminish distributions to unsecured creditors.
Procedural posture

A chapter 13 trustee objected to the confirmation of a plan under 11 U.S.C.S. § 1325(b), raising the issues of whether the debtor might use chapter 13 to retain multiple vehicles and whether her plan must compensate for the luxury character of a car loan.

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Consumer opinion summary, case decided on December 30, 2009 , LexisNexis #0210-032

In re Spears

Ruling
Debtor could not use section 506 to avoid liens in chapter 7 case.
Procedural posture

Judgment and mechanics liens were asserted against commercial real property in which a bankruptcy debtor had an interest, and the debtor moved to avoid the liens under 11 U.S.C.S. § 506(a)(1) on the ground that the outstanding loan balance secured by the property exceeded the value of the property.

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Consumer opinion summary, case decided on December 09, 2009 , LexisNexis #0110-046

Gawronski v. Bartolucci (In re Gawronski)

Ruling
Payments on loans from debtor's brother were preferential and not covered by ordinary course of business defense.
Procedural posture

In this adversary proceeding, plaintiff, the chapter 7 trustee, sought to recover allegedly preferential payments that the debtor made to defendant, her brother, during the year immediately prior to the commencement of bankruptcy proceedings. The brother claimed the defense under 11 U.S.C.S. § 547(c)(2) and the parties filed cross motions for summary judgment.

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Consumer opinion summary, case decided on August 21, 2009 , LexisNexis #1009-021

In re Gilbert

Ruling
Late filing with clerk of pay stubs previously provided to and returned by trustee was not grounds for dismissal.
Procedural posture

Movant, the chapter 7 trustee, asked the court to dismiss debtor's case pursuant to 11 U.S.C.S. § 521(i)(2) for failure to file certain pay stubs with the clerk of the bankruptcy court despite the fact that debtor had presented the materials to the trustee. At issue, inter alia, was whether the trustee was estopped from seeking dismissal.

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Consumer opinion summary, case decided on April 10, 2009 , LexisNexis #0609-115

In re Kasperek

Ruling
Attorney ordered to disgorge portion of fee due to delay caused by refusal to represent debtor in turnover proceeding.
Procedural posture

In two chapter 7 cases, a chapter 7 trustee sought an order that would compel the debtors' counsel to disgorge all of the legal fees that the clients had paid to a law firm.

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Consumer opinion summary, case decided on January 15, 2009 , LexisNexis #0309-093

In re Borowie

Ruling
Trustee could recover value of debtor's prepetition check that cleared postpetition.
Procedural posture

The chapter 7 trustee sought to compel the debtor to turnover the value of funds which the debtor had on deposit in his checking account at the moment of his bankruptcy filing. The central issue was whether a post-petition disposition of assets in good faith would absolve the debtor of the duty to surrender property as required under 11 U.S.C.S. § 521(a)(4).

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Consumer opinion summary, case decided on November 05, 2008 , LexisNexis #0109-012

In re Gross

Ruling
Debtor could not avoid lien on homestead after claiming alternative cash exemption.
Procedural posture

A debtor filed for relief under chapter 7 of the United States Bankruptcy Code and obtained an order of discharge. Almost eight years later, the debtor reopened the case and sought to avoid a lien, pursuant to 11 U.S.C.S. § 522(h), placed on the debtor's property by a judgment creditor.

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Consumer opinion summary, case decided on October 07, 2008 , LexisNexis #1108-063

In re Ober

Ruling
Trustee barred from seeking dismissal of converted chapter 7 case for failure to file payment advices after failing to raise issue at preconversion chapter 13 plan confirmation.
Procedural posture

A chapter 7 trustee filed a motion to dismiss a debtor's chapter 7 bankruptcy case for failure to file copies of all of the payment advices that the debtor received during the 60 days prior to the commencement of his bankruptcy proceeding, pursuant to 11 U.S.C.S. § 521(i)(1).

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Consumer opinion summary, case decided on June 27, 2008 , LexisNexis #0908-047