Eastern District

Deutsche Bank Natl Trust Co. v. Martin (In re Martin)

Creditor filed a motion for relief from the automatic stay in order to enforce a deed of trust against real property. The debtor's schedules do not list any interest in the property, and neither the chapter 7 trustee nor the debtor opposed the motion. The only opposition was filed by the debtor's wife, who represented that she and her son were the only owners of the property and that she was the only maker of the promissory note.
Ruling: 
Creditor was granted relief from the automatic stay to enforce a deed of trust against real property over the objections of the debtor's wife even though the property affected was not estate property but rather property of the debtor's wife and son and thus unaffected by the stay.
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Burton v. Educ. Credit Mgmt. Corp. (In re Burton)

Plaintiff bankruptcy debtor brought an adversary proceeding against defendant student loan creditors, seeking to discharge his student loans based on undue hardship pursuant to 11 U.S.C. § 523(a)(8), due to mental illness and his inability to maintain employment. The bankruptcy court conducted a trial.
Ruling: 
Student loans were deemed nondischargeable since debtor failed to show that debtor's mental inllness was likely to prevent future employment or that debtor had made a good faith effort to repay the loans.
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Lawrence v. Direct Loan (In re Lawrence)

Plaintiff debtor filed an adversary proceeding against defendant student loan lenders to determine the dischargeability of the debtor's student loan debt based upon undue hardship, pursuant to 11 U.S.C. § 523(a)(8).
Ruling: 
Student loan debt was deemed nondischargeable since debtor showed no evidence that repayment would impose undue hardship.
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In re Williams-Johnson

A creditor filed a proof of claim in a debtor's bankruptcy for amounts allegedly paid by the creditor to lenders secured by two parcels of real property of which the debtor was the co-owner with the creditor. The bankruptcy trustee objected to the claim.
Ruling: 
Creditor's amended claim was allowed as a late-filed claim under section 726(a)(2)(C) but only in a reduced amount.
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In re U.S. Airways Inc.

Before the court in a chapter 11 matter was the objection of a creditor to movant reorganized debtors'request for an order disallowing late-filed claims, including two that the claimant filed in the total amount of approximately $9.7 million.
Ruling: 
Court did not allow a creditor's late-filed claims since adequate notice was provided by publication in the paper and the late filing was not due to excusable neglect.
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In re Epley

The debtor moved to convert her chapter 7 case to one under chapter 13 as well as on the motion of the chapter 7 trustee to sell property of the estate. The chapter 7 trustee objected to conversion.
Ruling: 
Debtor was denied motion to convert case to chapter 13 since debtor had insufficient income to propose a confirmable plan and, thus, the motion was filed in bad faith.
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In re Balthrop

Chapter 13 trustee filed an objection to confirmation of debtors'plan, which objection was joined by creditor, claiming that the plan did not comply with 11 U.S.C. § 1325(a)(4).
Ruling: 
Debtors'chapter 13 plan was confirmed since the plan met the best interests of the creditor test, the debtors could exempt the marital residence, and the creditor did not show a medical emergency exception to this exemption.
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In re US Airways Inc.

Debtor airline filed for chapter 11 bankruptcy protection. The court established a claims bar date for creditors other than governmental units. After the claims bar date passed, movant former employee and wife sought leave to file a late proof of claim. The bankruptcy court held a hearing on the motion.
Ruling: 
Debtor's former employee was denied a motion to file a late proof of claim since sufficient notice was provided and no excusable neglect was established.
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In re Louredo

Debtor filed a voluntary petition for relief under chapter 7 of the Bankruptcy Code, together with a certificate of exigent circumstances. The court held that the certificate was deficient because it lacked a statement that the debtor had attempted but was unable to obtain the credit counseling required by 11 U.S.C. § 109(h)(1). The debtor subsequently filed a certificate reflecting that she received the required credit counseling.
Ruling: 
Debtor's case was dismissed even though the debtor obtained after filing the required credit counseling since, on filing, the debtor's certificate of exigent circumstances was insufficient.
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In re Allen

The debtor filed a voluntary petition for relief under chapter 13 of the Bankruptcy Code and a certification of exigent circumstances as to why she had not obtained credit counseling, as required by 11 U.S.C. § 109(h). The court held that the certificate was deficient because it lacked a statement that the debtor had attempted but was unable to obtain the required counseling, and it granted the debtor leave to file a supplemental certificate.
Ruling: 
Court dismissed the debtor's case since the debtor's certificate of exigent circumstances regarding the prefiling credit counseling requirement was deficient.
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