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Southern District

In re Busby

Debtors filed a petition under chapter 13 of the Bankruptcy Code, and a creditor filed a claim in the amount of $ 26,308.22 on a vehicle the debtors purchased less than 910 days before they declared bankruptcy. A trustee was appointed to represent the bankruptcy estate, and he filed an objection to the creditor's claim.
Ruling: 
Negative equity was not included in secured portion of 910 vehicle claim under hanging paragraph.
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Consumer case opionion summary, case decided on August 28,2008, LexisNexis #1108-052

In re White

The court issued a show cause order as to why sanctions or other relief should not be imposed for the failure of the debtor's attorney to comply with a corrected deficiency notice concerning a monthly domestic support obligation (DSO) expense in the amount of $ 650 per month that debtor disclosed on Schedule J.
Ruling: 
Debtor not required to list recipient of domestic support order that had not matured prepetition in initial schedules.
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Consumer case opionion summary, case decided on March 07,2008, LexisNexis #0408-124

In re Armstrong & Guy Law Office LLC

In a state court civil action, debtors were scheduled to defend a case involving contract and fee-splitting disputes among attorneys in the prosecution of numerous Fen-Phen cases. After the debtors filed voluntary chapter 11 petitions, the attorneys sought modifications of the automatic stay under 11 U.S.C. § 362(d)(1) to permit the underlying litigation to go forward.
Ruling: 
Relief from stay granted to allow attorneys'fee litigation related to Fen-Phen liability cases to move forward.
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Commercial case opionion summary, case decided on December 21,2007, LexisNexis #0208-001

In re Tate

Before the court was the U.S. Trustee's (UST's) motion to dismiss pursuant to 11 U.S.C. § 707(b)(2), as well as the chapter 7 debtor's opposition thereto.
Ruling: 
Debtors could not take deduction for vehicle owned free and clear, resulting in dismissal for abuse.
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Consumer case opionion summary, case decided on December 18,2007, LexisNexis #0208-012

Bridgewater v. Northrup Grumman Ship Sys.

Defendant employer filed motions to substitute exhibits and for summary judgment in plaintiff employee's suit alleging that the employer maintained a racially hostile work environment in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., and the Civil Rights Act of 1866, 42 U.S.C. § 1981. The employee sought monetary as well as injunctive and declaratory relief.
Ruling: 
Employment discrimination suit dismissed as not disclosed in debtor's bankruptcy.
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Consumer case opionion summary, case decided on November 29,2007, LexisNexis #1207-135

Cadle Co. v. Moore (In re Moore)

Pending decision following trial was plaintiff judgment creditor's objection to the granting of defendant debtor's global discharge: (1) pursuant to 11 U.S.C. § 727(a)(3), on the grounds that debtor, without adequate justification, concealed or otherwise failed to keep, record, or preserve records from which his financial condition or business transactions might be ascertained; (2) pursuant to section 727(a)(4); and (3) pursuant to section 727(a)(5).
Ruling: 
Discharge denied due to debtor's numerous omissions and false statements.
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In re Premiere Entertainment Biloxi LLC

Chapter 11 debtors filed a motion pursuant to 11 U.S.C. § 363(c) and Fed. R. Bankr. P. 4001(b) for an order authorizing the use of cash collateral on an interim basis. Creditors filed objections to the motion.
Ruling: 
Debtor allowed to use insurance proceeds to rebuild casino resort damaged by Hurrican Katrina.
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In re Consolidated FGH Liquidating Trust

In a consolidated bankruptcy proceeding, liquidating trustee filed objections to claimants'proofs of claims regarding a stock purchase agreement wherein the claimants sold stock to the debtor.
Ruling: 
Claims for outstanding amounts under stock purchase agreement arose from purchase and sale of securities and were subject to subordination.
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Sims v. Big Lots Sotres Inc.

In a Title VII employment discrimination case, defendant former employer moved for summary judgment asserting that plaintiff former employee was judicially estopped from pursuing her claim because the employee filed for chapter 7 bankruptcy protection, obtained a discharge, and failed to disclose to the bankruptcy court her pending or potential suit or administrative proceeding against the employer.
Ruling: 
Employment discrimination actions that had not accrued as of filing date were not property of the estate.
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Oakridge Consulting Inc. v. Mark A. Robicheaux Inc. (In re Consolidated FGH Liquidating Trust)

Chapter 11 debtor brought an adversary proceeding pursuant to 11 U.S.C. §§ 547(b) and 550(a) against defendant for the recovery of preferential transfers made by debtor to defendant.
Ruling: 
Defendant in preference proceeding was not entitled to credit for payments to third parties on debtor's behalf.
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