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In re Penninger

Ruling
Case dismissed for abuse taking into account debtors' financial circumstances at time of hearing.
Procedural posture

The United States Bankruptcy Administrator (BA) filed a motion to have the debtors' case dismissed pursuant to 11 U.S.C.S. § 707(b)(1) and (b)(3) on the grounds that the case constituted an abuse of the provisions of chapter 7.

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Consumer opinion summary, case decided on July 08, 2011 , LexisNexis #0811-098

Livingstone College Inc. v. DeBerry (In re DeBerry)

Ruling
Improperly pled "objection to discharge" dismissed where time to file new or amended complaint had expired.
Procedural posture

Plaintiff creditor filed an adversary complaint against defendants, the Chapter 7 debtor and a limited liability company, alleging fraud and other claims. The court asked counsel for plaintiff to submit a brief as to why the complaint should not be dismissed under Fed. R. Civ. P. 12(b)(6) for failure to state a nondischargeability claim.

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Consumer opinion summary, case decided on March 21, 2011 , LexisNexis #0411-125

In re Morrison

Ruling
Case dismissed for abuse after consideration of unscheduled household contributions by debtor's live-in partner.
Procedural posture

The United States Bankruptcy Administrator (BA) filed a motion seeking to have the instant case dismissed pursuant to 11 U.S.C.S. § 707(b)(1) and (b)(3) on the grounds that the case constituted an abuse of the provisions of chapter 7 based upon bad faith or the totality of the circumstances of the debtor's financial situation. The BA and the debtor each filed a motion for summary judgment, solely on the issue of the household size of the debtor.

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Consumer opinion summary, case decided on January 10, 2011 , LexisNexis #0211-092

In re Deluxe Cleaners of Durham Inc.

Ruling
Stay pending appeal of order allocating state court judgment proceeds to estate denied absent showing of harm.
Procedural posture

This matter came before the court upon the Motion for Stay Pending Appeal filed by the chapter 7 trustee (the moving trustee) for the bankruptcy estate of two debtors that had a bankruptcy pending in the U.S. Bankruptcy Court for the Eastern District of North Carolina. The moving trustee sought to stay an order that allocated 100 percent of state court judgment proceeds to the estate of debtor in the instant bankruptcy.

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Commercial opinion summary, case decided on November 17, 2010 , LexisNexis #1210-139

In re LOG LLC

Ruling
Foreclosure against property of member of LLC who guaranteed debt did not violate stay.
Procedural posture

A Chapter 11 debtor filed an amended emergency motion seeking an ex parte order requiring a creditor to show cause why the automatic stay provided by 11 U.S.C.S. § 362(a)(1) or (a)(6) was not violated and why the creditor should not be held in contempt of court. The motion also requested injunctive relief and an award of damages.

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Commercial opinion summary, case decided on November 09, 2010 , LexisNexis #1210-041

In re Stanley

Ruling
Confirmation denied where plan proposed paying spouse's unsecured creditors in full but only nine percent to debtor's own unsecured creditors.
Procedural posture

A debtor filed a Chapter 13 bankruptcy petition. A trustee filed the debtor's proposed Chapter 13 plan. The matter came before the court for a hearing on confirmation of the Chapter 13 plan of reorganization.

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Consumer opinion summary, case decided on August 19, 2010 , LexisNexis #1010-062

In re Deberry

Ruling
Debtor's obligation to pay one-half of joint marital debts was a nondischargeable domestic support obligation.
Procedural posture

A chapter 13 debtor filed an objection to a proof of claim filed by his former wife. The former wife claimed that the entire amount of her claim was entitled to priority status as a domestic support obligation (DSO) pursuant to 11 U.S.C.S. § 507(a)(1).

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Consumer opinion summary, case decided on April 30, 2010 , LexisNexis #0810-054

In re Hornung

Ruling
Case dismissed for bad faith where debtors purchased two vehicles on the eve of filing and had numerous inaccuracies in schedules.
Procedural posture

Debtors' chapter 7 case came before the court upon the Motion of the U.S. Bankruptcy Administrator for dismissal of the case pursuant to 11 U.S.C.S. § 707(b)(1), (b)(3).

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Consumer opinion summary, case decided on March 11, 2010 , LexisNexis #0510-058

In re Remember Enters.

Ruling
Trustee's application to sell debtor's restaurant equipment granted over objection of creditor.
Procedural posture

A bankruptcy trustee applied for approval to sell a bankruptcy debtor's restaurant equipment to the debtor's principal who would also assume the debtor's rent and utilities obligations for the restaurant property. A creditor which leased another property to the debtor objected to the sale and moved to dismiss the debtor's case on the ground that the proposed sale was solely for the purpose of avoiding successor liability under state law.

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Commercial opinion summary, case decided on February 05, 2010 , LexisNexis #0410-003

In re North End Props. LLC

Ruling
Relief from stay denied as to 29 of 30 properties absent showing of lack of value in excess of indebtedness or that the properties were not necessary for an effective reorganization.
Procedural posture

On December 30, 2009, forty-five separate Motions for Relief From Stay filed by a mortgage company (creditor) came on for hearing, after proper notice. As a consequence of the entry of a Consent Order with regard to 15 properties, there remained for hearing, on December 30, 2009, thirty (30) additional Motions (the Contested Motions).

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Commercial opinion summary, case decided on January 22, 2010 , LexisNexis #0410-044