West Virginia

Davis v. Rutherford

Plaintiff debtors sued defendants, a sheriff, a clerk, and a purchaser, in state court to nullify a tax sale of their residence. Defendant purchaser removed the case, claiming that plaintiffs' claims were based upon 11 U.S.C.S. § 362(a). Plaintiffs, intervenor bank, and all defendants but the purchaser sought a remand, fees, and costs. A magistrate recommended granting the remand but denying fees and costs. Objections were filed.
Ruling: 
Debtor's state court case that was not timely removed by defendant remanded.
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Consumer case opionion summary, case decided on August 20,2009, LexisNexis #0909-115

In re Gray

A creditor objected to confirmation of debtor's proposed chapter 11 plan of reorganization on the grounds that she was not committing all of her projected disposable income to her Plan. The creditor also sought dismissal of her bankruptcy case due to it allegedly being filed in bad faith.
Ruling: 
Confirmation denied due to debtor's failure to devote all projected disposable income to plan.
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Consumer case opionion summary, case decided on August 11,2009, LexisNexis #0909-055

Harrold v. Raeder (In re Raeder)

Plaintiff creditor claimed that her debtor son owed her $ 264,193. She sought to have this debt excepted from debtor's chapter 7 discharge pursuant to 11 U.S.C.S. § 523(a)(2), (4), and/or (6), and she requested that the court deny him a discharge pursuant to 11 U.S.C.S. § 727(a)(4).
Ruling: 
Debt owed by debtor to mother was dischargeable absent grounds for exception from discharge.
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Consumer case opionion summary, case decided on July 29,2009, LexisNexis #0909-049

In re Poe

The debtors filed for relief under chapter 12 of the United States Bankruptcy Code and submitted a proposed plan. The debtors sought to strip down the deed of trust liens of a creditor to the value of their real property and then to amortize the notes over a 40-year period. The creditor objected to the proposed treatment of the loans and the court held an evidentiary hearing on the debtors' eligibility under chapter 12.
Ruling: 
Debtors who were no longer family farmers were ineligible to file under chapter 12.
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Consumer case opionion summary, case decided on July 29,2009, LexisNexis #0909-036

In re Barrett

A debtor filed for relief under chapter 13 of the Bankruptcy Code. Before the debtor filed for bankruptcy relief, a creditor had repossessed four of the debtor's motor vehicles. The debtor filed a motion for turnover of the vehicles, arguing that he needs them to operate his business. The creditor sought relief from the automatic stay so that it could liquidate the repossessed collateral.
Ruling: 
Creditor ordered to turn over repossessed vehicles necessary to operate debtor's business under proposed plan.
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Consumer case opionion summary, case decided on July 14,2009, LexisNexis #0809-077

In re Cheyenne Sales Co.

A husband and wife filed a pre-petition civil action to recover allegedly fraudulent transfers made by the debtor's sole shareholders to the debtor and their family members. Shortly before the trial on that action, the debtor filed a chapter 7 bankruptcy petition. The debtor, shareholders, and family members moved for a declaration that the automatic stay prevented the fraudulent transfer action from moving forward.
Ruling: 
Prepetition fraudulent transfer action was subject to automatic stay.
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Commercial case opionion summary, case decided on May 19,2009, LexisNexis #0609-106

In re Estate of Larosa

The surviving debtor, the surviving spouse of deceased debtor, proposed a chapter 11 plan. Creditors, the cousins of the deceased debtor, filed objections to the plan and moved to convert the case to one under chapter 7, pursuant to 11 U.S.C.S. § 1112(b), arguing they were the only class of impaired creditors, and their approval was thus required for the court to approve the cramdown plan under 11 U.S.C.S. § 1129(a)(8).
Ruling: 
Conversion to chapter 7 conditionally granted where creditors who did not consent to chapter 11 plan were the only impaired creditors.
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Consumer case opionion summary, case decided on March 25,2009, LexisNexis #0509-067

In re Badour

A bank at which debtor maintained accounts, sought to offset, against funds in two general deposit accounts belonging to debtor and pursuant to 11 U.S.C.S. § 553, debtor's pre- petition liability in the amount of $12,760 owed to bank on account of credit obligations that had been secured by those deposit accounts. Also at issue was whether debtor's W. Va. Code § 38-10-4 exemption claim therein was cognizable per 11 U.S.C.S. § 522.
Ruling: 
Creditor could offset prepetition liability against debtor's bank accounts that secured the debt.
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Consumer case opionion summary, case decided on March 13,2009, LexisNexis #0409-055

In re 210 West Liberty Holdings LLC

Movants, a disgruntled investor/lender (investor) in a restaurant that was owner by a chapter 11 debtor and two members of a management entity (managers) that ran the restaurant, asked the court to lift the automatic stay under 11 U.S.C.S. § 362 so that movants might name debtor as an indispensible party to post-petition state court litigation filed against debtor, its principals and various related business entities and persons.
Ruling: 
Stay modified to allow debtor to be added as a party in state law suit over restaurant.
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Commercial case opionion summary, case decided on February 04,2009, LexisNexis #0309-073

Harrold v. Raeder (In re Raeder)

Plaintiff, the mother of defendant chapter 7 debtor, filed a motion for summary judgment in her action against the debtor, seeking to have a debt owed her excepted from the debtor's chapter 7 discharge pursuant to 11 U.S.C.S. § 523(a)(2), § 523(a)(4), and/or § 523(a)(6), and requesting that the court deny the debtor a discharge pursuant to 11 U.S.C.S. § 727(a)(4).
Ruling: 
Debtor's allegedly unauthorized withdrawals from mother's checking account on which debtor was an authorized signatory were dischargeable.
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Consumer case opionion summary, case decided on January 12,2009, LexisNexis #0209-075

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