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District of virginia

In re Larson

Ruling
Court approved attorneys' fees and costs that were reasonable and supported by contemporaneous records and denied remainder of fees requested.
Procedural posture

The debtors' counsel filed an application for compensation for services rendered in the chapter 13 bankruptcy case.

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opinion summary, case decided on July 21, 2006 , LexisNexis #0806-080

BNY Capital Funding LLC v. Us Airways Inc.

Ruling
Court deemed that letter of intent did not constitute executory contract since there was no unperformed or future obligations.
Procedural posture

Appellant creditor challenged an order of the bankruptcy court, which determined that appellee debtor retained certain rights agreed to by appellant in a Letter of Intent ("LOI"), and that the LOI was not an executory contract and thus subject to the prohibition on assumption of contracts to extend financial accommodations under 11 U.S.C. § 365(c)(2).

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opinion summary, case decided on July 07, 2006 , LexisNexis #0806-051

In re Kissal

Ruling
Notice and hearing required prior to determination that stay had terminated with regard to security interest in motor vehicle.
Procedural posture

Creditor filed an ex parte motion for an order confirming that the automatic stay had terminated with respect to the enforcement of its security interest in a motor vehicle owned by the debtor. The issue was whether the court could, in fact, address the motion on an ex parte basis.

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opinion summary, case decided on June 29, 2006 , LexisNexis #0906-073

Wilson v. Moir (In re Wilson)

Ruling
Debtor was denied summary judgment since section 544(a) barred debtor-in-possession from avoiding deed of trust binding on debtor.
Procedural posture

Plaintiff chapter 11 debtor sued defendant individuals, seeking to invoke her 11 U.S.C. § 544 strong-arm powers as a debtor in possession to set aside defendants'deed of trust on the grounds that it was not in the chain of title and would not have bound a bona fide purchaser for value. The debtor moved for summary judgment.

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opinion summary, case decided on May 26, 2006 , LexisNexis #0706-025

Highgrove LC v. Holcombe (In re Holcombe)

Ruling
Motion objecting to discharge rather than adversary proceeding gave notice to debtor and was sufficient to meet filing deadline.
Procedural posture

Plaintiff creditor filed an objection to the dischargeability of its debt pursuant to 11 U.S.C. § 523(a)(4) as a motion rather than as a complaint commencing an adversary proceeding. Defendant debtor sought to avoid defending the objection on its merits by having the motion dismissed as the wrong procedural method and having the complaint dismissed or stricken as untimely. The creditor filed motions to consolidate.

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opinion summary, case decided on May 18, 2006 , LexisNexis #0107-094

Educ. Credit Mgmt. Corp. v. Spence

Ruling
Court reversed bankruptcy court by ruling that debtor had not met three elements for determining debt dischargeability due to undue hardship.
Procedural posture

Before the court was appellant creditor's appeal of an order of the bankruptcy court, which fully discharged appellee debtor's student loan debt owed to the creditor. The creditor argued that the bankruptcy court erred by discharging the debtor's student loan because she would suffer an undue hardship if required to pay her student loan debt.

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opinion summary, case decided on May 12, 2006 , LexisNexis #0706-022

In re Hassett

Ruling
Motion to reopen case was granted, but debtor was required to move for extension of time to file certificate of completion of financial management course since debtor had failed to complete course.
Procedural posture

A debtor filed a motion to reopen her chapter 7 bankruptcy case.

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opinion summary, case decided on May 09, 2006 , LexisNexis #0606-077

In re Binns

Ruling
Court awarded supplemental fees to debtor's counsel but reduced full requested amount since it was excessive under section 330(a)(3).
Procedural posture

Counsel for a chapter 13 debtor applied for supplemental legal fees beyond the previously contracted fees and costs.

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opinion summary, case decided on April 28, 2006 , LexisNexis #0806-122

In re Vernon-Williams

Ruling
Supplemental fee requests were denied since the use of unauthenticated "minimums" for time keeping purposes was not reasonable.
Procedural posture

Before the court following a hearing on March 7, 2006, was the first omnibus objection of the trustee to certain supplemental fee applications of a law firm representing debtors, i.e., supplemental fee applications regarding a lead case and the first ten cases listed in Exhibit A to the first omnibus objection.

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opinion summary, case decided on April 27, 2006 , LexisNexis #0606-011

Harkins v. Educ. Credit Mgmt. Corp. (In re Harkins)

Ruling
Court granted debtor partial discharge of student loan debt in reopened case due to undue hardship.
Procedural posture

Plaintiff debtor filed for chapter 7 relief and received a discharge. Four years later, the debtor moved to reopen her case, seeking a discharge of her student loan debt pursuant to 11 U.S.C. § 523(a)(8)(B). Defendant creditor objected. The court had taken the matter under advisement.

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opinion summary, case decided on April 27, 2006 , LexisNexis #0606-057