Eastern District

In re LLS Mgmt. Co.

The chapter 7 trustee filed a motion to determine whether debtor was a "health care business" as that term was defined by 11 U.S.C.S. § 101(27A). Specifically at issue was the proper disposition of records maintained by debtor in connection with its operation of a smoking cessation program.
Ruling: 
Shredding of patient records of debtor smoking cessation center and retention of CD containing patients' information was proper procedure.
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Commercial case opionion summary, case decided on February 11,2008, LexisNexis #0408-038

In re Musselman

A creditor of a chapter 13 debtor objected to the chapter 13 trustee's motion for confirmation of the debtor's plan.
Ruling: 
Above-median debtor with negative projected disposable income required to propose plan with term of five years.
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Consumer case opionion summary, case decided on November 30,2007, LexisNexis #0108-085

In re Williams

A debtor filed a petition under chapter 13 and a plan for repaying his creditors. A creditor filed an objection to confirmation of the debtor's plan, claiming that it failed to commit all of the debtor's disposable income to the payment of unsecured creditors as required by 11 U.S.C. § 1325(b)(1)(B). The chapter 13 trustee claimed that the plan should not be confirmed because it was not filed in good faith.
Ruling: 
Above-median debtor without disposable income was not required to propose five year plan term.
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Consumer case opionion summary, case decided on October 25,2007, LexisNexis #0208-057

Parker v. Goodman (In re Parker)

Defendant debtor sought review of a judgment from the District Court for the Eastern District of Kentucky affirming the bankruptcy court's order in an adversary proceeding filed by plaintiff attorney, the debtor's former counsel, which permanently enjoined the debtor from prosecuting a state legal malpractice claim against the attorney.
Ruling: 
Sale of debtor's legal malpractice claim was proper.
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In re Connors

Appellant, a chapter 13 debtor, sought review of a decision from the District Court for the District of New Jersey, which held that the debtor did not have a right under 11 U.S.C. § 1322(c)(1) to cure a default on a mortgage secured by the debtor's principal residence between the time the residence was sold at a foreclosure sale and the time the deed was delivered.
Ruling: 
Debtor could not cure mortgage default after foreclosure sale and before delivery of deed.
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Zeitchik v. Zeitchik (In re Zeitchik)

Plaintiff, an ex-wife, filed an adversary proceeding pursuant to 11 U.S.C. § 523(a)(5) and (15) to determine the dischargeability of sums owed to her by defendant debtor, her ex- husband, who had filed a chapter 7 petition. At issue was whether certain payments that debtor was obliged to make under a state court order settling issues arising in the parties' divorce were nondischargeable pursuant to section 523(a)(5) or (15).
Ruling: 
Property distribution payments pursuant to divorce decree were dischargeable due to debtor's inability to pay.
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Hutson v. Smithfield Packing Co. (In re Natl Gas Distribs. LLC)

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant purchaser of natural gas from a bankruptcy debtor, seeking to avoid transfers of gas to the purchaser as fraudulent under 11 U.S.C. § 548(a)(1). The purchaser moved to dismiss the complaint or, in the alternative, for summary judgment, because the transfers were made in connection with a swap agreement and thus not subject to avoidance under 11 U.S.C. § 546(g).
Ruling: 
Forward agreement for sale of natural gas by debtor was not a swap agreement so that transfers thereunder were avoidable.
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In re Price

Chapter 13 debtors submitted for confirmation a proposed plan that would bifurcate creditor's claim which was secured by debtors'motor vehicle pursuant to 11 U.S.C. § 506, and strip down the secured part of the claim to the current value of the vehicle. Creditor filed an objection, asserting the plan violated the prohibition on bifurcation in 11 U.S.C. § 1325(a), because the debt in issue created a purchase money security interest.
Ruling: 
Strip down allowed where secured claim included obligations separate from and in addition to purcahse price of vehicle.
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In re Tune

A debtor filed a motion to extend the automatic stay in his chapter 13 bankruptcy case. A creditor filed a motion to dismiss, pursuant to 11 U.S.C. § 109(g)(2).
Ruling: 
Debtor who filed sixth case within 180 days of prior case was not an eligible debtor.
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In re Howard

The chapter 13 debtors filed an uncontroverted motion, pursuant to 11 U.S.C. § 362(c)(3)(B), for continuation of the automatic stay as to all creditors.
Ruling: 
Debtor who was disabled after being placed on life support for fourteen days granted exemption from mandatory credit counseling.
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