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In re Hitt

Ruling
Creditor's efforts to reactivate state court action against debtor violated discharge injunction.
Procedural posture

Debtor moved per 11 U.S.C.S. § 350 to reopen his chapter 7 bankruptcy and to reimpose the automatic stay relative to a lawsuit that was pending in state court on the date on which debtor's bankruptcy was filed. At issue was whether plaintiff creditor's efforts to reactivate the state court suit following the closure of the chapter 7 violated the discharge injunction under 11 U.S.C.S. § 524 or was affected by 11 U.S.C.S. § 523.

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Consumer opinion summary, case decided on April 03, 2008 , LexisNexis #0508-101

In re Snead

Ruling
Order for adequate protection payments and enjoining debtor-in-possession from using cash collateral was not necessary where sufficient equity cushion existed in security.
Procedural posture

The holder of a note and a deed of trust to certain real property securing a promissory note given by debtor-in-possession (DIP) asked the court for relief from stay to enjoin the DIP from using cash collateral based on the holder's claim that it did not have adequate protection. At issue was whether there was adequate protection for the holder's interest.

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Consumer opinion summary, case decided on April 01, 2008 , LexisNexis #0508-078

Angell v. Ray J. Pennington Inc. (In re Partitions Plus of Wilmington Inc.)

Ruling
Transfer was not avoidable due to applicability of contemporaneous exchange for new value defense.
Procedural posture

Plaintiff chapter 7 Trustee filed an adversary proceeding against defendant creditor seeking to avoid a transfer from the debtor as preferential. The creditor had worked as a subcontractor for the debtor. The creditor asserted, inter alia, that the payments could not be avoided because they were a contemporaneous exchange for new value given to the debtor under 11 U.S.C.S. § 547(c)(1). Both parties filed summary judgment motions.

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Commercial opinion summary, case decided on March 20, 2008 , LexisNexis #0808-067

In re Sak Dev. Inc.

Ruling
Construction company was entitled to reimbursement for expenses incurred in preservation of property of the estate.
Procedural posture

A construction company (movant) requested an order per 11 U.S.C.S. § 506(c) requiring a bank with a security interest in certain real estate in which debtor also had an interest to reimburse movant for expenses that it claimed to have incurred to preserve the value of the real estate. Specifically, movant sought more than $150,000 on account of said expenses. The bank objected to any reimbursement and, inter alia, challenged movant's standing.

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Commercial opinion summary, case decided on February 29, 2008 , LexisNexis #0408-078

In re Blanchard Transp. Servs.

Ruling
Arbitration of core matters is inconsistent with Bankruptcy Code.
Procedural posture

The debtor filed a motion for an order directing turnover of property of the debtor's estate that was in the possession of the debtor's customer. In response, the customer requested that the proceedings be stayed or dismissed while the parties submitted their disputes to arbitration, or in the alternative, that the court dismiss the debtor's motion so that the debtor could initiate the matter as an adversary proceeding.

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Commercial opinion summary, case decided on February 29, 2008 , LexisNexis #0508-024

In re Hinson

Ruling
Ipso facto clause in motor vehicle purchase contract was not enforceable where debtor gave timely notice of intention to reaffirm debt.
Procedural posture

Movant debtor filed a motion for contempt against respondent creditor for attempting to recover attorney's fees that the debtor was not required to pay.

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opinion summary, case decided on September 11, 2006 , LexisNexis #1106-010

In re Alexander

Ruling
Court deemed plans confirmable if projected disposable income was calculated under section 1325(b)(2)'s new disposable income definition and that amount, if any, was committed to pay unsecured creditors for applicable commitment period.
Procedural posture

The chapter 13 trustee filed motions to confirm the chapter 13 plans in several cases. The debtors in these cases all objected because the trustee had not included language in the plans that allowed the possibility of early termination. The trustee contended that the applicable commitment period was a period of either three or five years depending upon a debtor's current monthly income.

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opinion summary, case decided on June 30, 2006 , LexisNexis #0806-012

In re Brooks

Ruling
Court deemed that to confirm chapter 13 plan with 910 claim, plan had to provide for full payment of secured claim with interest at Till rate.
Procedural posture

A chapter 13 bankruptcy trustee submitted a chapter 13 reorganization plan to the court for its approval. A creditor filed objections to the plan because it provided that it would be paid interest on its 910 claim based on the "Till," prime-plus rate rather than the rate specified in the chapter 13 debtors'contract. The debtors proposed an amendment to the plan, which would eliminate any interest payments with regard to the creditor's claim.

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opinion summary, case decided on June 09, 2006 , LexisNexis #0706-078