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In re Wallace

Ruling
Debtors could not avoid liens as impairing homestead exemption they had not formally claimed.
Procedural posture

Pursuant to 11 U.S.C.S. § 552(f)(1), the debtors filed a motion to avoid judicial liens on mortgaged real property for which the debtors had no equity and had not formally claimed a homestead exemption on Schedule C. The trustee objected to the debtor's request.

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Consumer opinion summary, case decided on May 12, 2011 , LexisNexis #0611-051

In re L. Frumusa Family Enter. P1 LLC

Ruling
Case dismissed with prejudice where debtor no longer owned scheduled real or personal property that could be used in reorganization or adjusted in chapter 7.
Procedural posture

A creditor filed a motion for order dismissing case and authorizing dissolution of debtor pursuant to 11 U.S.C.S. § 1112(b).

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Commercial opinion summary, case decided on February 14, 2011 , LexisNexis #0311-027

Wisotzke v. County of Ontario (In re Wisotzke)

Ruling
Transfer in a state court tax proceeding could not be avoided as fraudulent where debtor did not qualify for state homestead exemption at time of transfer.
Procedural posture

Plaintiff Chapter 13 debtor filed a complaint against defendant county requesting a determination that a transfer in a state court tax proceeding was a fraudulent conveyance under 11 U.S.C.S. §§ 544 and 548, seeking to avoid the transfer under 11 U.S.C.S. § 522(h), seeking a money judgment. The county asserted various counterclaims. The county filed a motion for summary judgment, and the debtor filed a cross-motion for summary judgment.

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Consumer opinion summary, case decided on February 04, 2011 , LexisNexis #0211-115

Rochester Lumber Co. v. Millner (In re Millner)

Ruling
Debtor builder's diversion of lien law trust funds was a breach of fiduciary duty resulting in nondischargeable debt.
Procedural posture

The debtor, a homebuilder, filed a petition under chapter 7. Plaintiff lumber company filed this adversary action alleging that, to the extent the debtor had diverted trust funds under Article 3A of the New York State Lien Law, (the Lien Law), all or a portion of the amounts due to the lumber company under a state court judgment should be determined nondischargeable under 11 U.S.C.S. § 523(a)(4).

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Commercial opinion summary, case decided on July 13, 2010 , LexisNexis #0910-121

In re Brown

Ruling
Second mortgage that was at least partially secured could not be avoided.
Procedural posture

A bankruptcy debtor moved to avoid a creditor's second mortgage lien pursuant to 11 U.S.C.S. § 506 on the ground that, based on the actual value of the debtor's residence which secured the lien, the creditor was wholly unsecured.

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Consumer opinion summary, case decided on May 05, 2010 , LexisNexis #0810-046

Monroe Capital Inc. v. Frumusa (In re Frumusa)

Ruling
Membership interests in limited liability company, owned 100 percent by debtor on petition date, were property of the estate.
Procedural posture

Plaintiff servicing agent commenced an adversary proceeding against defendants, debtor and two other individuals, pursuant to Fed. R. Bankr. P. 7001(2), to have the court determine the owner of the membership interests in a certain limited liability company (LLC).

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Consumer opinion summary, case decided on April 14, 2010 , LexisNexis #0610-136

In re Union City Contractors Inc.

Ruling
Cross motions of bank and sureties for relief from stay to pursue claims to funds in debtor's account granted.
Procedural posture

A bank claimed that funds in a bankruptcy debtor's account were subject to the bank's security interest granted by the debtor as security for a loan, but two sureties under separate construction contracts of the debtor asserted that the funds were contract proceeds subject to their indemnification agreements which also extended to an unpaid contract balance. The bank and the sureties cross-moved for relief from the automatic bankruptcy stay.

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Commercial opinion summary, case decided on March 31, 2010 , LexisNexis #0610-111

Gordon v. Carpitella (In re Carpitella)

Ruling
Discharge denied due to debtor's failure to disclose postpetition deposit of check for building sale proceeds and subsequent payment to unlisted creditor.
Procedural posture

Defendant debtor filed a petition initiating a chapter 7 case. Chapter 7 case trustee commenced an adversary proceeding against the debtor, pursuant to 11 U.S.C.S. § 727, which requested that the court deny the debtor's discharge. Plaintiff U.S. Trustee moved for summary judgment. The debtor cross-moved for summary judgment.

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Consumer opinion summary, case decided on March 17, 2010 , LexisNexis #0610-022

In re 2670 West Ridge Rd. LLC

Ruling
Stay pending appeal of relief from stay to foreclose granted given that third party promise to fund plan shortfall was issue of first impression.
Procedural posture

Debtor LLC filed a petition under chapter 11 of the Bankruptcy Code, and a lender that obtained a judgment of foreclosure against the debtor in state court filed a motion for relief under 11 U.S.C.S. § 362(d)(2) so commercial property the debtor owned could be sold at a foreclosure sale. The court granted the lender's motion and denied the debtor's motion for reconsideration, and the debtor filed a motion for a stay pending appeal.

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Commercial opinion summary, case decided on February 04, 2010 , LexisNexis #0410-007

PJC Techs. Inc. v. C3 Capital Partners LP (In re PCJ Techs. Inc.)

Ruling
Sale of 100 percent of stock owned by third party did not violate stay.
Procedural posture

Chapter 11 debtor sought a preliminary injunction to stay defendant secured creditor's sale of stock of the debtor owned by a third party. The debtor alleged that the scheduled sale of the stock would violate the automatic stay pursuant to 11 U.S.C.S. § 362(a)(1).

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Commercial opinion summary, case decided on January 20, 2010 , LexisNexis #0410-077