2nd Circuit

Buchwald v. Avista Energy Inc. (In re N. Am. Energy Conservation Inc.)

Plaintiff chapter 7 trustee filed a preference action against defendant, one of debtor's electricity trading partners. The trustee sought, pursuant to 11 U.S.C. §§ 547(b) and 550(a)(1), to recover $1,698,400 it paid to the partner for energy debtor requested after it closed its electrical energy trading division. The partner moved for summary judgment seeking a determination that these monies were paid in the ordinary course of its business.
Ruling: 
Payments were deemed not preferential since they were payments of debts incurred by debtor in the ordinary course of business.
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Belton v. Educ. Credit Mgmt. Corp. (In re Belton)

Plaintiff debtor filed an adversary proceeding against defendant creditor to determine the dischargeability of certain student loan obligations pursuant to 11 U.S.C. § 523(a)(8). The court previously ruled that the debtor had failed to prove undue hardship. The only issue was whether the collection costs were also nondischargeable, even though the creditor chose not to claim these collection costs for purposes of a distribution in chapter 13.
Ruling: 
Collection costs associated with a student loan debt previously deemed nondischargeable was also deemed nondischargeable.
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IBA Inc. v. Hoyt (In re Hoyt)

Plaintiff creditor filed an adversary proceeding against defendant chapter 7 debtors, asking the court to, inter alia, deny the discharge pursuant to 11 U.S.C. § 727(a)(4). The court conducted a trial.
Ruling: 
Debtor was denied a discharge due to the debtor's intent to defraud by concealing interests in the debtor's daughter's bank account.
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In re Trahan

Movants, debtors in a joint chapter 7 bankruptcy case, filed a motion pursuant to 11 U.S.C. § 522(f)(2) to avoid, as impairing their homestead exemptions, the judicial liens recorded against their residence by respondent lienholders.
Ruling: 
Court found that the Code's statutory formula for avoiding judicial liens that impaired a homestead exemption applied to lien priorities created by state law and ruled that all judicial liens on the debtors'residence were avoided in their entirety as imp
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In re Wuthrich

This was a foreign proceeding. Debtors operated SwissAir, a world-wide commercial airline. Its operations included flights between Switzerland and the United States. Its trademark "SWISSAIR" was registered with the U.S. Patent & Trademark Office ("USPTO"). An entity purchased debtors' flight operations and commenced a case before the USPTO to cancel debtors'registration of the trademark. The trustee moved to enjoin the proceeding in the USPTO.
Ruling: 
A foreign trustee was denied an injunction to enjoin a patent office proceeding since that proceeding was to address the threshold question of the ownership of a trademark, which needed to be decided before considering the appropriateness of injunctive relief.
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In re Adelphia Communs. Corp.

In this contested matter under the umbrella of the jointly administered chapter 11 cases of debtors, a communications company (parent company) and its subsidiaries, the Ad Hoc Committee of Noteholders, who were the holders of bond debt issued by an intermediate subsidiary of the parent company, one of the 231 debtors whose chapter 11 cases were being jointly administered in this court, moved for several orders, including disqualifying counsel.
Ruling: 
Interdebtor disputes did not evidence fraud or mismanagement warranting the appointment of a trustee for the intermediate subsidiary of a chapter 11 debtor.
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In re Refco Inc.

After several related entities filed voluntary chapter 11 petitions, movant official committee of unsecured creditors moved to clarify its obligation under 11 U.S.C. § 1102(b)(3)(A) to provide unsecured creditors who were not members of the committee with access to information.
Ruling: 
Official committee of unsecured creditors had duty to keep unsecured creditors informed but did not have to disclose information that was confidential or required waiving of attorney-client privilege.
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In re Henderson

Petitioner debtor filed a petition for relief under chapter 13 of the Bankruptcy Code. On that same day, she also filed a Request for Thirty-Day Extension To File Credit Counseling Certificate, which was before the court for a decision.
Ruling: 
Debtor was denied an extension to file a credit counseling certificate but given time to obtain further legal advice since the debtor had not shown sufficient exigent circumstances to warrant the extension.
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Davis v. Educ. Credit Mgmt. Corp. (In re Davis)

Plaintiff debtor commenced the present adversary proceeding against defendant creditor for a declaration that her student loan was dischargeable pursuant to 11 U.S.C. § 523(a)(8).
Ruling: 
Some of student loan debt was discharged as undue hardship, but the remaining portion was deemed not dischargeable and within the debtor's means to repay.
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In re McBride

A bankruptcy debtor's chapter 13 plan was confirmed and provided for monthly payments to a creditor whose debt was secured by the debtor's vehicle but, upon the debtor's failure to make the plan payments, the creditor repossessed and sold the vehicle. The creditor submitted an amended claim for deficiency, and the debtor moved to disallow the claim.
Ruling: 
Creditor's deficiency claim was disallowed since the creditor did not reserve a right of relief from potential deficiency.
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