H.D. Supply Waterworks Ltd. v. Spivey (In re Construction Supervision Servs.)
Jul
20
2012
Ruling
Bankruptcy court abstained from hearing complex state law action in which non-debtor parties predominated.
Procedural posture
Creditor filed a state court complaint against defendants, a chapter 11 debtor and non-debtor parties, alleging breach of contract, enforcement of lien, and quantum meruit claims. The creditor sought mandatory or permissive abstention under 28 U.S.C.S. § 1334(c), a non-debtor defendant objected.
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Court
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In re Powell
Jun
26
2012
Ruling
Creditor who foreclosed and continued to send bills in violation of discharge injunction was liable for damages and civil sanctions.
Procedural posture
The chapter 7 debtors filed a motion seeking sanctions and attorneys fees for violation of the discharge injunction pursuant to 11 U.S.C.S. § 524(a) by a bank and its loan servicer (collectively, the creditors).
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Court
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In re Elks
Jun
26
2012
Ruling
Creditor's postpetition repossession of storage shed and attempt to collect prepetition debt were willful violations of stay justifying punitive damages.
Procedural posture
Before the court was debtors' Motion for Sanctions and Damages for Violation of 11 U.S.C.S. § 362 and Violation of Fed. R. Bankr. P. 9037, the creditor's Response in Opposition to the Motion.
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Court
:
- 11 U.S.C.
Oliver v. Moore (In re Henries)
Jun
25
2012
Ruling
Quitclaim deed to debtor's former spouse validly executed prior to petition date pursuant to separation agreement was not avoidable.
Procedural posture
Chapter 7 trustee initiated this adversary proceeding against defendant, the debtor's former spouse, seeking to avoid the transfer of property pursuant to 11 U.S.C.S. § 549.
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Court
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In re Sterrenberg
May
18
2012
Ruling
Case dismissed due to presumption of abuse after elimination of deductions for payments on boat and vehicle intended for surrender.
Procedural posture
The Bankruptcy Administrator filed a motion to dismiss a chapter 7 proceeding pursuant to 11 U.S.C.S. § 707(b)(1) and (b)(3).
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Court
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In re Millwork Specialties Inc.
May
04
2012
Ruling
General manager and president allowed administrative expense claim for postpetition wages to the extent work was necessary for operation of debtor's business.
Procedural posture
Creditor applied for the allowance and payment of an administrative expense, in the form of wages for his postpetition work on behalf of the debtor. The chapter 7 trustee argued the application should be denied because creditor's foregoing wages was akin to a capital contribution because creditor held a membership interest in the debtor, and so was not entitled to administrative priority.
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Court
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In re Marshall
Apr
05
2012
Ruling
Hardship discharge in case of deceased debtor denied due to bad faith.
Procedural posture
A chapter 13 debtor's attorney filed a motion seeking a hardship discharge pursuant to 11 U.S.C.S. § 1328(b) because the debtor was deceased.
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Court
:
- 11 U.S.C.
In re Robert F. Youngblood Constr. Co.
Mar
22
2012
Ruling
Stay could not be extended to cover lawsuits and foreclosures against non-debtors.
Procedural posture
Chapter 11 debtors filed a motion to extend the automatic stay to lawsuits and foreclosures filed against non-debtors, contending that there was sufficient identity of interest between the non-debtors and the debtors that the actions would distract the non-debtors from reorganizing, which would irreparably harm the bankruptcy estate.
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Court
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In re Carroll
Mar
19
2012
Ruling
Relief from stay denied absent evidence of lack of adequate protection.
Procedural posture
A creditor sought relief from the automatic stay under 11 U.S.C.S. § 362(d), the chapter 7 trustee objected.
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Court
:
- 11 U.S.C.
In re Newkirk
Mar
09
2012
Ruling
Confirmation denied due to insufficient disclosure statement that did not enable creditors to judge feasibility of plan.
Procedural posture
The bankruptcy admistrator and creditors objected to the confirmation of chapter 11 debtors' plan of reorganization on the basis that the disclosure statement provided insufficient information for creditors to determine the source of income to fund the plan and determine if the plan was feasible.
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Court
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