Judge Frank

In re Umstead

A bankruptcy debtor objected to the proofs of claims submitted by creditors based on credit card accounts which were assigned to the creditors, on the ground that the proofs of claim failed to establish that the creditors were the owners of the accounts and thus held valid claims against the debtor.
Ruling: 
Proofs of claim for credit card accounts allowed as chains of title to the accounts were not required.
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Consumer case opionion summary, case decided on April 03,2013, LexisNexis #0413-116

Southeastern Pa. Synod of Evangelical Lutheran Church in Am. v. Gotwald (In re Gotwald)

Creditor filed an adversary proceeding requesting that debtor's obligation to the creditor be held nondischargeable pursuant to 11 U.S.C.S. § 523(a).
Ruling: 
Failure to comply with state court injunction resulted in nondischargeable debt.
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Consumer case opionion summary, case decided on March 26,2013, LexisNexis #0613-051

Cusato v. (Springfield Fin. Inc.) In re Cusato

Debtor asserted that defendant creditor's lien was avoided in her bankruptcy case and that the demand for payment prior to the closing of the reverse mortgage transaction constituted an act to collect an unsecured debt in violation of the chapter 7 bankruptcy discharge that she received in 2005 and the statutory injunction arising therefrom. Before the court was the creditor's motion for summary judgment, Fed. R. Civ. P. 56.
Ruling: 
Classification of debt as unsecured did not void underlying lien so that subsequent demand for payment did not violate discharge injunction.
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Commercial case opionion summary, case decided on February 06,2013, LexisNexis #0213-140

In re MDC Sys.

Objector, an unsecured creditor of debtor, objected to a $1.071 million proof of claim (POC) filed by claimant LP based on debtor's prepetition breach of a ten-year lease of commercial real property and asked the court to disallow it in its entirety. Alternatively, objector argued that the POC was properly allowed for $196,510 per the "rent cap" in 11 U.S.C.S. § 502(b)(6). LP agreed that the cap applied but disagreed as to the proper amount.
Ruling: 
Claim based on prepetition breach of lease allowed with exclusion for rents received in mitigation.
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Commercial case opionion summary, case decided on January 17,2013, LexisNexis #0213-046

Beard Research Inc. v. Kates (In re Kates)

Creditors who held a pre-petition judgment against chapter 7 debtor, its former executive vice president and director of marketing in the amount of $6,784,872.53 issued by a state court, asserting the judgment for various business tort claims was nondischargeable, including damages and sanctions for spoliation of evidence, under 11 U.S.C.S. § 523(a)(6).
Ruling: 
Judgment claim for business torts was nondischargeable.
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Consumer case opionion summary, case decided on December 18,2012, LexisNexis #0113-017

Goldstein v. Starnet Capital Group LLC

The chapter 7 trustee brought an adversary proceeding to set aside the $175,000 in multiple pre-petition transfers as fraudulent transfers pursuant to 11 U.S.C.S. §§ 544, 548 and 550. Alternatively, the trustee sought to avoid the final two of the transfers as preferences under 11 U.S.C.S. §§ 547(b) and 550, as made to the transferee within 90 days of the petition date.
Ruling: 
Payments made in ordinary course of business were not avoidable.
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Commercial case opionion summary, case decided on October 24,2012, LexisNexis #1112-054

Klein v. Weidner (In re Weidner)

In this adversary proceeding, plaintiff ex-wife sought a determination that the debtor, her ex-husband, was not entitled to a general bankruptcy discharge pursuant to 11 U.S.C.S. § 727(a)(2) and that summary judgment should be granted based on the collateral estoppel effect of state and federal court judgments against the debtor.
Ruling: 
Discharge denied based on debtor's fraudulent transfer of mortgage.
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Consumer case opionion summary, case decided on September 10,2012, LexisNexis #1012-058

In re Morell

Debtor filed an Amended Motion for Contempt alleging that a creditor and a repossession company violated the automatic stay, 11 U.S.C.S. § 362(a), by attempting to repossess debtor's automobile during the evening of November 21, 2011. The creditor filed a response.
Ruling: 
Amended motion for contempt for violation of stay denied in light of settlement and absent evidence of emotional distress.
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Consumer case opionion summary, case decided on August 01,2012, LexisNexis #0812-072

In re Alcorn Corp.

A creditor filed a motion to dismiss a chapter 11 debtor's bankruptcy case for lack of venue or, in the alternative, to transfer the bankruptcy case to the District of Puerto Rico pursuant to 28 U.S.C.S. § 1412.
Ruling: 
Dismissal or transfer of venue denied where debtor operated out of office in chosen district despite frequent trips to Puerto Rico.
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Commercial case opionion summary, case decided on July 20,2012, LexisNexis #0812-102

Theokary v. Abbatiello (In re Theokary)

Plaintiff debtor filed an adversary proceeding against defendant creditors alleging violation of the stay under 11 U.S.C.S. § 362(a). In a liability proceeding, the court found that the creditors willfully violated the automatic stay and scheduled a trial on damages. After receiving an expert report from the debtor, the creditors filed a motion in limine and to dismiss.
Ruling: 
Proceeding for stay violation damages dismissed due to manufactured evidence.
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Consumer case opionion summary, case decided on April 10,2012, LexisNexis #0512-005

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