Middle District

Sovereign Bank v. Finnegan (In re Finnegan)

Creditor bank filed a proof of claim for $22,577.68, secured by a 2004 Dodge Grand Caravan financed in the name of debtor. Debtor proposed to cram down its claim to the value of the collateral. Creditor objected, asserting that the plan could not be confirmed because debtor's proposed treatment of the claim was prohibited by the "hanging paragraph"following 11 U.S.C. § 1325(a)(9).
Ruling: 
Vehicle purchased by debtor for spouse's business use was not subject to hanging paragraph and secured creditor's claim could be bifurcated.
ABI Membership is required to access the full summary of Sovereign Bank v. Finnegan (In re Finnegan). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Verdini v. Poirier (In re Verdini)

Plaintiff bankruptcy debtor brought an adversary proceeding against defendant, the debtor's former spouse, alleging that debts to the spouse arising from the parties'settlement agreement in their divorce proceedings were dischargeable. The spouse contended that the debts were nondischargeable under 11 U.S.C. § 523(a)(5) and (15) as alimony and as marital debts which the debtor was able to pay.
Ruling: 
Marital debts were deemed dischargeable since the alimony was actually compensation for unequal distribution of corporate assets.
ABI Membership is required to access the full summary of Verdini v. Poirier (In re Verdini). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Pages

Subscribe to Middle District