Northern District

In re Ball

Pursuant to Fed. R. Bankr. P. 3022, an individual chapter 11 debtor asked the court to grant him a discharge, close his chapter 11 case, and enter an injunction on the ground that all payments under his confirmed chapter 11 plan had been made. A foundation and an administrator of certain decedents' estates (objectors) interposed objections to the motion on the ground that they had not been paid in full.
Ruling: 
Individual chapter 11 case could not be closed despite substantial consummation where payments were still owed to objecting creditor.
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Consumer case opionion summary, case decided on May 23,2008, LexisNexis #0608-120

In re Kleeb

In their chapter 13 proposed plan, debtors proposed to pay a creditor's secured claim in full at its 0 percent contract interest rate. They also sought to modify the terms of the contract to extend the repayment period by almost four years. The creditor objected to confirmation of the plan.
Ruling: 
Creditor entitled to interest on loan that was modified as part of debtor's plan.
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Consumer case opionion summary, case decided on May 23,2008, LexisNexis #0608-128

In re Bland

A debtor filed for relief under chapter 13 of the Bankruptcy Code and submitted a proposed plan. A creditor filed an objection to confirmation on the grounds that neither the petition nor the plan was filed in good faith.
Ruling: 
Case dismissed for bad faith where debtor did not explain loss of loan proceeds or adequately disclose details of son's alleged embezzlement.
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Consumer case opionion summary, case decided on May 06,2008, LexisNexis #0608-090

City of Clarksburg v. Sprouse (In re Sprouse)

Debtors filed a no-asset, chapter 7 bankruptcy case on September 3, 2003. Earlier that year, on April 23, 2003, plaintiff, the City of Clarksburg, condemned property debtors owned as being dilapidated. As a result of this condemnation, the City razed the property on September 8, 2006, for the cost of $ 4,900. The City sought to collect this amount from debtors as a post-petition obligation. Pending were cross-motions for summary judgment.
Ruling: 
Claim based on creditor city's postpetition demolition of property pursuant to prepetition condemnation was discharged in debtor's bankruptcy.
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Consumer case opionion summary, case decided on April 15,2008, LexisNexis #0508-025

City of Clarksburg v. Sprouse (In re Sprouse)

Debtors filed a no-asset, chapter 7 bankruptcy case on September 3, 2003. Earlier that year, on April 23, 2003, plaintiff, the City of Clarksburg, condemned property debtors owned as being dilapidated. As a result of this condemnation, the City razed the property on September 8, 2006, for the cost of $ 4,900. The City sought to collect this amount from debtors as a post-petition obligation. Pending were cross-motions for summary judgment.
Ruling: 
Claims of city for demolition costs of condemned property that was scheduled prior to petition date were discharged in debtor's bankruptcy.
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Consumer case opionion summary, case decided on April 15,2008, LexisNexis #0508-130

In re Vandernick

In separate cases, bankruptcy debtors purchased vehicles within the period prior to filing their bankruptcy petitions which implicated the provision of 11 U.S.C.S. § 1325(a) (hanging paragraph referencing paragraph 5) barring application of 11 U.S.C.S. § 506 to claims secured by the vehicles. The debtors proposed plans with minimal or no interest to creditors holding such claims, and the creditors objected to confirmation of the plans.
Ruling: 
Hanging paragraph did not prevent application of prime-plus interest on claims secured by vehicles.
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Consumer case opionion summary, case decided on March 31,2008, LexisNexis #0408-089

Grimes v. First-Citizens Bank & Trust Co. (In re Grimes)

Plaintiff debtor objected that the bankruptcy court lacked jurisdiction under 28 U.S.C.S. § 157(b)(5) to hear his action against defendants, a bank and its officials, for negligence.
Ruling: 
Negligence action against bank and its officials would benefit creditors and was related to debtor's bankruptcy.
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Consumer case opionion summary, case decided on March 31,2008, LexisNexis #0408-094

In re Bland

A creditor objected that a debtor was not an individual with regular income and was ineligible for chapter 13 relief under 11 U.S.C.S. § 109(e).
Ruling: 
Contributions from non-debtor spouse could be considered in determination that debtor was eligible under chapter 13.
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Consumer case opionion summary, case decided on March 31,2008, LexisNexis #0408-073

In re Linn

The chapter 13 Trustee objected to the confirmation of the chapter 13 plan proposed by the debtor on the basis that the plan failed to commit all his disposable income to the plan to the payment of unsecured creditors, as required by 11 U.S.C.S. § 1325(b).
Ruling: 
Confirmation granted over objection of trustee that debtor was not devoting all disposable income to plan where it was in best interests of creditors for debtor to remain in chapter 13.
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Consumer case opionion summary, case decided on March 10,2008, LexisNexis #0408-092

In re Windwood Heights Inc.

Debtor developer filed a petition under chapter 11 of the Bankruptcy Code in the State of New Jersey, and the case was transferred to the Northern District of West Virginia. A judgment creditor filed a motion for relief from the automatic stay, pursuant 11 U.S.C.S. § 362(d)(3). The debtor opposed the motion.
Ruling: 
Relief from stay to allow foreclosure in "single asset real estate" case denied where possibility for equitable plan existed.
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Commercial case opionion summary, case decided on February 25,2008, LexisNexis #0308-112

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