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District of virginia

In re Lavigne

Ruling
Hanging paragraph precluded bifurcation of vehicle loan except for negative equity portion which was not purchase money in nature.
Procedural posture

Four separate chapter 13 cases were before the court. Debtors in each of the four cases purchased motor vehicles within the 910-day period immediately preceding the filing of their bankruptcy petitions. The four creditors which financed their motor vehicle purchases objected to confirmation of their chapter 13 plans.

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Consumer opinion summary, case decided on November 14, 2007 , LexisNexis #0108-127

In re Maggard

Ruling
Mortgagee that had been paid in full could not reopen debtor's case to allow removal of state insurance dispute to bankruptcy court.
Procedural posture

A bankruptcy debtor's case was closed and the debtor brought an action in state court against her former mortgagee, alleging that insurance proceeds received by the mortgagee due to a loss by fire of a residence on the debtor's property was property of the debtor. The mortgagee moved to reopen the debtor's bankruptcy case to allow removal of the case to the bankruptcy court.

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Consumer opinion summary, case decided on November 13, 2007 , LexisNexis #1207-098

In re Lephew

Ruling
Debtors with income below 150% of poverty line who had filing fee at petition date but spent the funds prior to hearing denied waiver.
Procedural posture

Chapter 7 debtors filed an application for a waiver of the chapter 7 filing fee pursuant to 28 U.S.C. § 1930(f).

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Consumer opinion summary, case decided on November 09, 2007 , LexisNexis #0208-064

In re Parson

Ruling
Trustee's abandonment of debtors' home was irrevocable.
Procedural posture

A creditor of discharged chapter 7 debtors filed a motion pursuant to 11 U.S.C. § 350(b) to reopen the debtors' chapter 7 case.

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Consumer opinion summary, case decided on November 06, 2007 , LexisNexis #1207-066

In re U.S. Airways Inc.

Ruling
Pilot's unsecured priority claim disallowed as duplicative of claim filed by Pension Benefit Guarantee Corporation in debtor's prior case.
Procedural posture

Debtor airline company filed a petition under chapter 11, and one of the debtor's employees filed an unsecured priority claim in the amount of $1,300,000. The debtor filed an objection to the claim and moved for summary judgment on its objection.

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Commercial opinion summary, case decided on October 31, 2007 , LexisNexis #1207-137

In re Buker

Ruling
Bankruptcy court lacked jurisdiction to enforce settlement of action for violation of discharge injunction.
Procedural posture

After debtor won a discharge in a chapter 7 bankruptcy and the case was closed, debtor filed a claim against defendant creditor which claimed that it had violated the discharge injunction. The case was reopened but the parties settled the claim before an adversary complaint could be filed. Debtor then moved again to reopen the case pursuant to 11 U.S.C. § 350 to enforce the ensuing settlement agreement, which motion was opposed by the creditor.

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Consumer opinion summary, case decided on October 26, 2007 , LexisNexis #1207-065

In re IPofA W. Oaks Mall LP

Ruling
Chapter 11 trustee ordered appointed where debtor's owner and manager violated fiduciary duties with questionable sale to entity also in bankruptcy.
Procedural posture

Debtors, three Texas limited partnerships (LPs), filed separate petitions under chapter 11, and the court granted their petition for joint administration of their cases. Movant creditor filed a motion for an order appointing a chapter 11 trustee to represent the interests of creditors.

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Commercial opinion summary, case decided on October 26, 2007 , LexisNexis #1207-054

LaSalle Natl Assn v. Cordova (In re Cordova)

Ruling
Creditor would be entitled to relief from stay to foreclose on property without equity absent conversion to chapter 13 and imposition of repayment plan.
Procedural posture

Movant mortgage creditor sought relief from the automatic stay of 11 U.S.C. § 362 in respondent debtor's chapter 7 case.

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Consumer opinion summary, case decided on October 22, 2007 , LexisNexis #1107-108

In re Hailemichael

Ruling
Deferment of credit counseling requirement where debtor did not claim exigent circumstances for filing or inability to obtain counseling within five days of petition date.
Procedural posture

A debtor filed for relief under chapter 7. The debtor filed a request for deferment of the credit counseling requirement set forth in 11 U.S.C. § 109(h).

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Consumer opinion summary, case decided on October 12, 2007 , LexisNexis #1107-071

In re Lilliefors

Ruling
Debtor who falsely certified compliance with credit counseling requirement could not benefit from actual non-compliance by obtaining voluntary dismissal.
Procedural posture

The debtor had stated under oath that he completed the credit counseling requirement and would file the credit counseling certificate. However, he did not file the certificate. Because there were assets available for distribution to creditors, both the chapter 7 trustee and the United States Trustee filed motions to prevent the case from being dismissed under Interim Bankr. E.D. Va. R. 1007-1(J)(4).

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Consumer opinion summary, case decided on October 03, 2007 , LexisNexis #1107-004