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eastern district of north carolina

In re Forbes Transp. LLC

Ruling
Case converted to chapter 7 rather than voluntarily dismissed due to debtor's transfer of cash collateral to principal in violation of court order.
Procedural posture

The debtors filed motions to dismiss their chapter 11 bankruptcy cases. A secured creditor requested that the cases be converted to chapter 7, pursuant to 11 U.S.C.S. § 1112(b)(1).

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Commercial opinion summary, case decided on April 02, 2009 , LexisNexis #0609-063

Den-Mark Props. LLC v. SunTrust Bank (In re Den-Mark Props. LLC)

Ruling
Improperly recorded second deed of trust could be avoided.
Procedural posture

Debtor sued holder of a second deed of trust on certain properties and trustee, seeking to invalidate the second deed of trust, a determination that their' claims were unsecured with respect to the properties, and to require amounts held in escrow resulting from the sale of certain properties to be paid to the debtor. The debtor moved for summary judgment.

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Commercial opinion summary, case decided on March 27, 2009 , LexisNexis #0609-058

In re Hoff

Ruling
Filing of Schedule I excused to allow court to set current monthly income of debtors with recent involuntary decrease in income.
Procedural posture

The debtors brought a motion to excuse the requirement, under 11 U.S.C.S. § 521(a)(1)(B), of filing a Schedule I, and for setting an alternative date for determining current monthly income under 11 U.S.C.S. § 101(10A)(A)(ii). A creditor objected to excusing the required filing of Schedule I.

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Consumer opinion summary, case decided on March 23, 2009 , LexisNexis #0509-114

In re Siegel

Ruling
Debt that was part of debtor's property settlement with former spouse was not a domestic support obligation and was a general unsecured claim.
Procedural posture

The debtor filed an objection to the $ 50,000 priority claim filed by his former spouse. The issue before the court was whether the claim was for a domestic support obligation as defined in 11 U.S.C.S. § 101(14A), as such was a priority claim that, pursuant to 11 U.S.C.S. § 1322(a)(2) and § 1325(a)(1), had to be paid in full through the debtor's chapter 13 plan.

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Consumer opinion summary, case decided on March 13, 2009 , LexisNexis #0509-001

Easthaven Marina Group LLC v. B&M Holdings LLC (In re Easthaven Marina Group LLC)

Ruling
Faulty deed of trust gave rise to secured claim on theory of estoppel due to debtor's conduct.
Procedural posture

Debtor filed an action against a property seller alleging that the obligation asserted by the seller in its claim was invalid and unenforceable because of a faulty deed of trust. The debtor filed a motion for summary judgment.

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Commercial opinion summary, case decided on March 13, 2009 , LexisNexis #0509-112

Apropos Holdings LLC v. Faal (In re Faal)

Ruling
Claim for damage to leased premises due to installation and removal of refrigeration equipment was not willful or malicious and was dischargeable.
Procedural posture

Plaintiff creditor filed an adversary proceeding against defendant debtor seeking a determination that its debt was nondischargeable pursuant to 11 U.S.C.S. § 523(a)(6). The creditor contended that the debtor caused significant damage to its premises both during installation and removal of refrigeration equipment. The creditor also contended that it appeared that the debtor caused damage by hitting a floor and office wall with a sledgehammer.

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Consumer opinion summary, case decided on March 13, 2009 , LexisNexis #0509-015

In re Mozingo

Ruling
Untimely claim disallowed despite lack of notice due to credit card assignee creditor's failure to notify debtor of assignment.
Procedural posture

The chapter 13 trustee objected to a creditor's claim in a debtor's bankruptcy case, pursuant to 11 U.S.C.S. § 502(b)(9) and Fed. R. Bankr. P. 3002(c).

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Consumer opinion summary, case decided on March 10, 2009 , LexisNexis #0509-010

In re Eagle Creek Subdivision LLC

Ruling
Chapter 11 trustee appointed due to dishonesty of managing LLC.
Procedural posture

In consolidated cases, the debtors filed for relief under chapter 11. The committee of holders of junior deeds of trusts and owners of tenancy-in-common interests (the Committee) filed a motion for appointment of a trustee, pursuant to 11 U.S.C.S. § 1104.

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Commercial opinion summary, case decided on March 09, 2009 , LexisNexis #0509-052

In re RADCO Props. Inc.

Ruling
Confirmation denied due to improper attempt to set time limit for substantial consummation based solely on distribution.
Procedural posture

A debtor sought confirmation of an amended chapter 11 plan of reorganization and approval of a second amended disclosure statement.

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Commercial opinion summary, case decided on March 09, 2009 , LexisNexis #0509-051

In re Easthaven Marina Group LLC

Ruling
Motion to dismiss denied where totality of circumstances demonstrated debtor had filed in bad faith.
Procedural posture

The debtor filed for chapter 11 bankruptcy protection. The debtor's schedules provided for a contingent and disputed unsecured claim in favor of a holding company. The schedules included two additional unsecured creditors. The holding company moved to dismiss the debtor's bankruptcy case pursuant to 11 U.S.C.S. § 1112(b)(1). The court held a hearing on the motion.

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Commercial opinion summary, case decided on February 25, 2009 , LexisNexis #0409-057