- 11 U.S.C.
In re McMahan
Oct
25
2012
Ruling
Chapter 13 case dismissed for bad faith as filed on eve of foreclosure sale after default under chapter 11 plan instead of seeking modification of chapter 11 plan.
Procedural posture
Debtor filed a petition under chapter 13 of the Bankruptcy Code, and a bank that held a debt that was secured by real property the debtor owned filed a motion to dismiss the debtor's case for serial filing, arguing that the debtor's case was not filed in good faith under 11 U.S.C.S. §§ 1307 and 1325(a)(3).
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Court
:
Tow v. Henley (In re Henley)
Sep
28
2012
Ruling
Discharge denied due to false statements in schedules and concealment of sale of assets.
Procedural posture
A chapter 7 trustee and two judgment creditors, filed an adversary proceeding against defendant chapter 7 debtors, a husband and wife, seeking a determination that the debtors were not eligible under 11 U.S.C.S. § 727(a) to have their debts discharged. The debtors filed counterclaims alleging, inter alia, that the creditors violated 11 U.S.C.S. § 362. The case was tried to the court.
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Court
:
- 11 U.S.C.
In re Watts
Aug
09
2012
Ruling
Case dismissed with prejudice due to failure to disclose malpractice action and listing trustee as plaintiff without authority to do so.
Procedural posture
Chapter 13 trustee alleged bad faith conduct by the debtors and filed a motion to dismiss the debtors' case under 11 U.S.C.S. § 1307.
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Court
:
In re Stout
Jun
29
2012
Ruling
Proof of claim allowed where debtor signed note as corporate representative but creditor demonstrated the loan was for debtor's personal use.
Procedural posture
A creditor filed a proof of claim in a bankruptcy case based on a promissory note signed by the bankruptcy debtor as president of a corporation of which the debtor was the sole principal. The bankruptcy trustee objected to allowance of the creditor's claim.
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Court
:
- 11 U.S.C.
Ciprian Ltd. v. Oxford Dev. Co. Grant St. LP (In re Ciprian Ltd.)
Jun
21
2012
Ruling
Perfected security interest in liquor license and subsequent execution were not avoidable.
Procedural posture
Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditor, seeking a determination under 11 U.S.C.S. § 506 that the creditor did not hold a secured interest in a liquor license a business ("debtor") obtained before it declared bankruptcy, and a determination that a lien the creditor obtained less than ninety days before the debtor declared bankruptcy was a preferential transfer. The case was tried to the court.
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Court
:
In re SBMC Healthcare LLC
Jun
18
2012
Ruling
Debtor could employ law firm that waived claim against the estate.
Procedural posture
Debtor LLC filed a petition under chapter 11 of the Bankruptcy Code and asked the court for permission to employ a law firm that represented the debtor before it declared bankruptcy. The United States Trustee ("UST") filed an objection.
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Court
:
Passavant Meml Homes v. Laurel Highlands Found. Inc. (In re Laurel Highlands Found. Inc.)
Jun
12
2012
Ruling
Chapter 11 case dismissed as filed in bad faith as a litigation tactic.
Procedural posture
Plaintiff, chapter 11 debtor, filed a notice of removal of a state court action pursuant to 28 U.S.C.S. § 1452(a). Defendants, members of the debtor seeking to take over its management and an outsider, moved to remand the adversary proceeding, and alternatively to dismiss the petition, for the bankruptcy court to abstain, or for relief from the automatic stay.
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Court
:
- 11 U.S.C.
In re Airhart
May
31
2012
Ruling
Court could determine redemption value of vehicle in converted chapter 7 case without relying on value established while case was in chapter 13.
Procedural posture
Debtor filed a petition under chapter 13 of the Bankruptcy Code and proposed a plan that valued a vehicle she owned at $17,000 and paid a credit union the full amount of the debt. Just over two years later, the debtor converted her case to one under chapter 7 of the Bankruptcy Code and filed a motion to redeem the vehicle pursuant to 11 U.S.C.S. § 722. The court held a hearing on the debtor's motion.
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Court
:
Zedbley v. First Horizon Home Loans (In re Ong)
Apr
23
2012
Ruling
Proof of claim filed within 30 days after order avoiding lien was considered timely.
Procedural posture
Before the court in debtors' chapter 7 case was objector trustee's objection to proof of claim 6. Respondent was a mortgage creditor (claimant).
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Court
:
PHH Mortg. Corp. v. Cardiello (In re Vitale)
Apr
02
2012
Ruling
Relief from stay granted nunc pro tunc to allow mortgagee to continue foreclosure mistakenly commenced while no asset case was still being administered.
Procedural posture
A mortgagee filed a motion for relief from the automatic stay nunc pro tunc pursuant to 11 U.S.C.S. § 362(d), seeking retroactive relief from the automatic stay and abandonment of property by the bankruptcy estate. The chapter 7 trustee did not object.
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Court
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