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western district of north carolina

In re Casseday

Ruling
Debtor's exemptions forfeited on grounds of bad faith.
Procedural posture

In a voluntary chapter 7 case, the Trustee filed an objection to the debtor's exemptions.

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Consumer opinion summary, case decided on July 10, 2012 , LexisNexis #0812-002

In re Brown

Ruling
Protective order granted due to creditor's inclusion of account numbers in proof of claim.
Procedural posture

A creditor filed proofs of claim in bankruptcy debtors' cases based on amounts due for cable television services which included the entire account numbers of the debtors. The debtors moved for a protective order to require the creditor to redact all but the last four digits of the account numbers as required by Fed. R. Bankr. P. 9037.

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Consumer opinion summary, case decided on July 03, 2012 , LexisNexis #0712-139

In re Nolan

Ruling
Debtors could not seek turnover of proceeds of sale of equipment after confirmation and effective date.
Procedural posture

Movants filed a Motion for Turnover of Personal Property & Leave of Court to Pursue State Law Claims Against the Trustee. Also before the court was the Objection thereto of the Chapter 11 trustee for debtors and the trustee of a Liquidating Trust. The Motion sought: (a) immediate turnover of all or portion of the proceeds from the auction of certain Equipment, and (b) leave to pursue state law remedies against the Trustee. A hearing was held.

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Consumer opinion summary, case decided on July 02, 2012 , LexisNexis #0712-135

In re Jenkins

Ruling
Debtor's failure of means test did not require dismissal.
Procedural posture

This matter came on for hearing on a creditor's Motion to Dismiss Debtor's Chapter 7 Bankruptcy Petition. The trustee in the case filed an objection to the Motion. Another creditor also filed an objection to the Motion. The U.S. Bankruptcy Administrator also filed an objection to the Motion. The moving creditor filed a reply to the Trustee's objection.

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Consumer opinion summary, case decided on July 02, 2012 , LexisNexis #0712-128

In re Sweetenburg

Ruling
Landlord could proceed with eviction where debtor landlord failed to make required disclosure of judgment.
Procedural posture

A landlord filed an application for judicial assistance to direct a clerk to provide a certified copy of the docket indicating that an exception to the automatic stay applied to a chapter 13 debtor's case pursuant to 11 U.S.C.S. § 362(b)(22).

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Consumer opinion summary, case decided on May 18, 2012 , LexisNexis #0612-074

In re Bechtold

Ruling
Sanctions imposed against debtor for unauthorized postpetition sale of property.
Procedural posture

Bankruptcy debtors were ordered to show cause why sanctions should not be imposed against the debtors for selling real property after their bankruptcy petition was filed without authorization. The debtors moved for approval of the sale nunc pro tunc and to amend their schedules to claim an exemption in the property.

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Consumer opinion summary, case decided on April 19, 2012 , LexisNexis #0512-042

Pettus Props. v. VFC Partners 8 LLC (In re Pettus Props.)

Ruling
Tortious interference with contract case properly removed as a core proceeding that would affect administration.
Procedural posture

Plaintiffs, a corporation that declared chapter 11 bankruptcy ("debtor"), an LLC, and the executor of a decedent's estate, sued defendant creditor in the Superior Court for Union County, North Carolina, alleging, inter alia, that the creditor committed tortious interference with a contract. The creditor removed the action to the bankruptcy court, and plaintiffs sought an order remanding the case to state court and/or for permissive abstention.

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Commercial opinion summary, case decided on March 20, 2012 , LexisNexis #0412-066

Belfor USA Group Inc. v. Helms (In re Helms)

Ruling
Prepetition assignment of insurance proceeds could not be avoided and proceeds were not property of the estate.
Procedural posture

Creditor brought an adversary proceeding against bankruptcy trustee seeking a declaration that insurance proceeds paid to bankruptcy debtors as a result of a fire that destroyed the debtors' residence belonged to the creditor by assignment as the contractor which rebuilt the residence. The creditor and the trustee cross-moved for summary judgment.

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Consumer opinion summary, case decided on February 14, 2012 , LexisNexis #0312-019

Malone v. Golden (In re Malone)

Ruling
Creditor's telephone calls and emails to debtor violated discharge injunction.
Procedural posture

Debtors brought an adversary proceeding against creditor alleging that the creditor violated the bankruptcy discharge injunction by making telephone calls and sending emails to the debtors in an attempt to collect a loan debt which was discharged in the debtors' bankruptcy.

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Consumer opinion summary, case decided on January 19, 2012 , LexisNexis #0312-016

Scott v. Family Dollar Stores Inc. (In re Family Dollar FLSA Litig.)

Ruling
Debtors estopped from pursuing undisclosed Fair Labor Standards Act causes of action.
Procedural posture

Procedural Posture: One plaintiff employee opted into a Fair Labor Standards Act suit against defendant employer, and a second plaintiff employee sued the employer under the Act for unpaid wages. The employer moved for summary judgment.

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Commercial opinion summary, case decided on October 14, 2011 , LexisNexis #1111-020