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District of maryland

In re Kersner

Ruling
Debtors and counsel sanctioned for filing under chapter 13 when debtors exceeded debt limit.
Procedural posture

Pursuant to Fed. R. Bankr. P. 9011(b), movant creditors sought sanctions against the debtors and their counsel on the grounds that there was no reasonable argument or evidentiary support to establish their 11 U.S.C.S. § 109(e) eligibility at the time a chapter 13 bankruptcy petition was filed. The creditors also alleged that the debtors violated Fed. R. Bankr. P. 9011 by filing a motion to reconsider. The court held a hearing on the motions.

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Consumer opinion summary, case decided on March 16, 2009 , LexisNexis #0509-002

Rahn v. Young (In re Rahn)

Ruling
Debt related to misrepresentations by debtor contractor regarding restoration project.
Procedural posture

Plaintiff creditor filed an adversary proceeding for a determination that a judgment owed by defendant debtor was non-dischargeable, pursuant to 11 U.S.C.S. § 523(a)(2), (6).

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Consumer opinion summary, case decided on March 11, 2009 , LexisNexis #0509-012

Moore Kershner LLC v. Moore Steele LLC

Ruling
Action between debtor's current and former attorneys dismissed for lack of jurisdiction.
Procedural posture

Movant, a law firm that was the previous counsel of record for debtors in nine cases, filed a motion for omnibus relief against nonmovant, the successor law firm of record and the individual attorney who had been previously been a member of the former firm and had become a member of the latter firm. Pursuant to 11 U.S.C.S. § 105(a), the dispute was consolidated for resolution in one miscellaneous proceeding.

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Commercial opinion summary, case decided on March 10, 2009 , LexisNexis #0609-025

In re Glacken

Ruling
Court abstained from determining bona fide dispute in involuntary case.
Procedural posture

Three creditors commenced an involuntary chapter 7 case against an alleged debtor, who filed a motion to dismiss the involuntary petition on the grounds that the creditors were ineligible under 11 U.S.C.S. § 303(b)(1).

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Consumer opinion summary, case decided on February 23, 2009 , LexisNexis #0509-071

Smith v. Oak Grove Util. Co. LLC (In re Smith)

Ruling
Debtor sanctioned for failure to respond to interrogatories related to claim it had alleged was false.
Procedural posture

Plaintiff chapter 13 debtor sued defendant creditor, alleging that the acceleration of the debtor's postpetition obligations for the remaining term of a declaration for deferred water and sewer charges was a gross violation of the 11 U.S.C.S. § 362(a) automatic stay, and that the creditor's proof of claim was false, fraudulent, and not a valid debt. The creditor moved to compel discovery and for discovery sanctions.

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Consumer opinion summary, case decided on January 16, 2009 , LexisNexis #0309-029

McDow v. American Debt Free Assn (In re Spencer)

Ruling
Debt relief agency sanctioned for misrepresentation of services.
Procedural posture

Plaintiff filed complaints against defendant debt relief agency (agency) seeking civil penalties, injunctive, and other relief. The complaints stated seven causes of action -- two related to 11 U.S.C.S. § 526 (restrictions on debt relief agencies) and five related to 11 U.S.C.S. § 110 (penalties f.

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Consumer opinion summary, case decided on January 14, 2009 , LexisNexis #0309-002

In re Nicol

Ruling
Attorneys' compensation in chapter 7 case allowed in reduced amount due to limited benefit of initial chapter 11 representation.
Procedural posture

Counsel filed an application for the allowance of compensation for services rendered to the debtors in a chapter 11 bankruptcy case under 11 U.S.C.S. § 330(a)(1).

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Consumer opinion summary, case decided on November 14, 2008 , LexisNexis #0109-003

In re Davis

Ruling
Plan could be confirmed despite noncompliant treatment of three claims where creditors did not object.
Procedural posture

The chapter 13 trustee filed an objection to confirmation of the debtor's plan, asserting that the treatment of the claims of three secured judgment creditors under the proposed plan did not comply with the requirements imposed by 11 U.S.C.S. § 1325(a)(5)(B). The debtor argued that, because none of those creditors had objected to the proposed plan, 11 U.S.C.S. § 1325(a)(5)(A) was satisfied and § 1325(a)(5)(B) need not be considered.

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Consumer opinion summary, case decided on November 12, 2008 , LexisNexis #0109-024

McDow v. Daniels-Brown (In re Daniels-Brown)

Ruling
Case dismissed for abuse where debtor overstated expenses and understated projected tax refund.
Procedural posture

Movant United States Trustee (UST) filed a motion to dismiss a chapter 7 debtor's case under 11 U.S.C.S. § 707(b), claiming that allowing the debtor to discharge her debts would have been an abuse of the bankruptcy system.

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Consumer opinion summary, case decided on November 12, 2008 , LexisNexis #0109-019

In re Baltimore Emergency Servs. II

Ruling
Counsel for insurer in malpractice case could not file a proof of claim for services against insured physician debtors.
Procedural posture

Chapter 11 debtors objected, pursuant to 11 U.S.C.S. § 502(b), to the unsecured claim filed by a claimant.

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Commercial opinion summary, case decided on October 15, 2008 , LexisNexis #1208-031