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western district of north carolina

In re Preston

Ruling
Trustee's motion for turnover granted as to money in debtor's accounts on petition date.
Procedural posture

The chapter 7 trustee filed an objection to exemptions claimed by the debtor and a motion for turnover as to certain amounts in the debtor's accounts.

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Consumer opinion summary, case decided on September 24, 2009 , LexisNexis #1109-053

In re Houser

Ruling
Confirmation of above median debtors' plan denied due to 50 month commitment period rather than the required 60 months and insufficient payment to general unsecured creditors.
Procedural posture

The applicable commitment period mandated by 11 U.S.C.S. § 1325(b)(4) for above median debtors, which was the case, was sixty months. Since the debtors' proposed plan was shorter, and because the proposed plan did not pay unsecured creditors in full, it could not be confirmed. Based on their schedules, the debtors had monthly disposable income of $ 2,334. The debtors failed to overcome the presumption that the means test determination of disposable income was also their projected disposable income. They claimed a secured expense of $ 205.75, which was the monthly debt payment on their Starcraft camper, proposing to retain the camper and continue to make those payments to the lender. The creditor argued successfully that the camper was a luxury item that should be surrendered, and that the $205.75 of future income had to be devoted to paying unsecured creditors. Also, because the debtors' car was paid for, the court held that the debtors were not entitled to take the standard IRS table deduction for automobile expense against projected disposable income.

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Consumer opinion summary, case decided on December 14, 2007 , LexisNexis #0909-022

In re Wall

Ruling
Bifurcation of debt precluded as inclusion of negative equity in financing does not destroy purchase money security interest status.
Procedural posture

This matter was before the court on a creditor's Objection to Confirmation of the debtors'chapter 13 plan. That plan proposed to bifurcate the creditor's secured claim in the debtors'recently purchased car because as part of the purchase, the creditor financed the "negative equity" in the debtors'trade-in vehicle.

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Consumer opinion summary, case decided on September 17, 2007 , LexisNexis #1107-087

Kuehn v. Cadle Co.

Ruling
Debtor sufficiently described fair debt collection action in schedules so that misidentification of defendant did not proper investigation by trustee and could continue with lawsuit.
Procedural posture

Plaintiff consumer filed a Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692 et seq., complaint against defendant holding company, then amended the complaint to dismiss the company and name defendant affiliate debt collection firm. The firm filed motions to dismiss as to both complaints, arguing the consumer failed to properly list the lawsuit on her bankruptcy schedules, thus divesting her of standing and the court of jurisdiction.

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opinion summary, case decided on March 15, 2007 , LexisNexis #0407-060

Millsaps v. Yates (In re Yates)

Ruling
Judgment for fatal alcohol related auto accident was based on debtor's willful and malicious conduct and was nondischargeable.
Procedural posture

Plaintiff, the personal representative of the deceased's estate, filed an adversary proceeding seeking a determination that a debt owed by defendant debtor was not dischargeable under 11 U.S.C. § 523(a)(6) because the conduct of the debtor was willful and malicious. The court issued findings of fact and conclusions of law.

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opinion summary, case decided on February 06, 2007 , LexisNexis #0707-062

Hannigan v. Countrywide Home Loans Inc.

Ruling
Debtor's appeal of judgment in adversary proceeding granting relief from stay to allow foreclosure dismissed due to failure to file transcript.
Procedural posture

Appellant debtor filed a chapter 13 bankruptcy petition and then initiated an adversary proceeding against appellee creditor to prevent its foreclosure action on his residence. The bankruptcy court granted summary judgment in favor of the creditor and the debtor sought review. The court, sua sponte, considered whether the debtor's failure to comply with Fed. R. Bankr. P. 8006 warranted dismissal under Fed. R. Bankr. P. 8001(a).

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opinion summary, case decided on October 27, 2006 , LexisNexis #1206-105