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middle district of north carolina

Surrey Inv. Servs. v. Smith

Ruling
Debtor not entitled to credit for attorney's fees incurred between closing and reopening of case.
Procedural posture

A creditor and a chapter 7 bankruptcy trustee sought review of a decision of a bankruptcy court, which determined that appellee debtor was entitled to a credit for allowed administrative expenses pursuant to 11 U.S.C.S. § 503(b)(1)(A). The creditor had sued the debtor in state court, and the debtor had filed counterclaims, but failed to disclose this cause of action in his chapter 7 petition.

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Consumer opinion summary, case decided on October 16, 2009 , LexisNexis #1109-074

Northern v. Mack (In re Mack)

Ruling
Discharge denied due to failure to schedule multiple creditors, assets and criminal judgment.
Procedural posture

Plaintiff trustee filed a complaint objecting to defendant debtor's discharge pursuant to 11 U.S.C.S. § 727(a)(4)(A). Specifically, the complaint alleged that debtor failed to list multiple creditors, bank accounts, assets, and criminal restitution judgments on the petition. The matter was pending decision following trial.

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Consumer opinion summary, case decided on September 18, 2009 , LexisNexis #1009-092

In re Heglar

Ruling
Hanging paragraph precluded bifurcation of claim secured by "910 vehicle."
Procedural posture

Bankruptcy debtors' plan of reorganization proposed to bifurcate the claim of a creditor secured by the debtors' vehicle into secured and unsecured amounts, and to pay the creditor only the secured amount. The creditor objected to confirmation of the debtors' plan on the ground that bifurcation was precluded under 11 U.S.C.S. § 1325(a) (hanging paragraph referencing paragraph 5).

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Consumer opinion summary, case decided on August 31, 2009 , LexisNexis #1009-031

In re ACA Real Estate LLC

Ruling
Oversecured creditor allowed interest at contract rate.
Procedural posture

An oversecured creditor in a chapter 11 bankruptcy case sought postpetition interest under 11 U.S.C.S. § 506(b). The parties did not dispute that the creditor was entitled to interest. What was in dispute was the interest rate that should be applied in computing the postpetition interest.

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Commercial opinion summary, case decided on July 14, 2009 , LexisNexis #0909-082

In re Martin

Ruling
Case ordered converted to chapter 13 or dismissed on totality of circumstances showing that debtor could fund a plan.
Procedural posture

The U.S. Bankruptcy Administrator asserted that debtors' disposable income raised a presumption of abuse of chapter 7 bankruptcy and that, in any event, the circumstances of the debtors and their bankruptcy case indicated actual abuse. The Administrator moved to dismiss the debtors' case pursuant to 11 U.S.C.S. § 707(b).

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Consumer opinion summary, case decided on June 19, 2009 , LexisNexis #0809-051

In re Myers

Ruling
Case dismissed for abuse due to debtors' unreasonable expenditures.
Procedural posture

The debtors filed for relief under chapter 7. A bankruptcy administrator filed for dismissal of the case pursuant to 11 U.S.C.S. § 707(b)(1) and (3).

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Consumer opinion summary, case decided on May 22, 2009 , LexisNexis #0709-056

In re Witherspoon

Ruling
Reasonable attorneys' fees allowed in dismissed case for services that were necessary when rendered.
Procedural posture

A debtor filed for relief under chapter 13. An attorney for the debtor filed an application for allowance and payment of attorney's fees.

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Consumer opinion summary, case decided on April 29, 2009 , LexisNexis #0709-039

In re Heinze

Ruling
Debtor's co-owner's share of fees from sale of property could be deducted from its share of proceeds.
Procedural posture

A debtor filed for relief under chapter 7 of the Bankruptcy Code. In earlier proceedings a chapter 7 trustee obtained an order to sell property that was held jointly by the debtor and another, and to employ the services of a salesperson. The trustee sought an order, pursuant to 11 U.S.C.S. § 363(j), for an allocation of fees and expenses related to the sale between the debtor's estate and the other owner.

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Consumer opinion summary, case decided on April 16, 2009 , LexisNexis #0609-132

Shepard v. OQuinn

Ruling
Collateral estoppel did not apply to federal default judgment so that dischargeability could be relitigated.
Procedural posture

Judgment creditor sued debtor, seeking a declaration that a federal default judgment finding the debtor liable to the creditor was nondischargeable pursuant to 11 U.S.C.S. § 523(a)(4) and (6). The creditor moved for summary judgment.

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Consumer opinion summary, case decided on March 31, 2009 , LexisNexis #0609-054

In re Crink

Ruling
Case dismissed for bad faith as debtors could fund a chapter 13 plan with reasonable reduction of excessive expenses.
Procedural posture

The debtors filed for relief under chapter 7. A bankruptcy administrator sought dismissal of the case pursuant to 11 U.S.C.S. § 707(b)(1) and (3).

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Consumer opinion summary, case decided on March 18, 2009 , LexisNexis #0509-125