Texas

In re Moates

Debtors in two bankruptcy cases submitted to the court the question of whether they were required under 11 U.S.C. § 521(a)(1)(B)(v), as individual debtors whose debts were primarily business debts, to file a statement of current monthly income. The question was before the court for decision.
Ruling: 
Debtors whose debts were not primarily consumer debts were not required to file a statement of current monthly income as the filing of schedules I and J provided redundant information and, thus, satisfied that requirement.
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Gilbane Bldg. Co. v. Air Sys. (In re Encompass Servs. Corp.)

After the debtors' chapter 11 plan was confirmed, plaintiff contractor brought an adversary proceeding against defendant purchaser, seeking a declaration that the debtors'assignment of a subcontract to the purchaser was invalid and remained in the estate, and seeking an injunction against the purchaser from further prosecuting the subcontract in state court. The parties cross- moved for summary judgment; the purchaser moved for abstention.
Ruling: 
Court ruled that it did not have jurisdiction over an action involving the assigment of a subcontract since the subcontract was created independent of the bankruptcy and did not impact postconfirmation distributions to creditors.
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Mirant Corp. v. S. Co.

The bankruptcy court recommended that the reference not be withdrawn as to an adversary proceeding filed by the jointly administered chapter 11 debtors and a creditors committee against defendant, one debtor's prior parent corporation, that asserted core and non-core claims under 28 U.S.C. § 157. The parent, who had requested a jury trial, had also requested transfer to Georgia after withdrawal.
Ruling: 
Motion for withdrawal of a reference was granted since the action was more in the nature of a non-core proceeding than a core proceeding.
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In re Art Midwest Inc.

Claimants moved to dismiss the debtor's bankruptcy case as a bad faith filing. The court granted the motion to dismiss. The debtor moved for a new trial or for the court to amend and supplement its findings. The debtor also moved for a new trial on the debtor's objections to the claims and to sell its assets free and clear of liens and encumbrances.
Ruling: 
Court rejected the debtor's objection that the claimants who were granted a motion to dismiss the debtor's case as a bad faith filing lacked standing since one was a creditor and the others were parties in interest.
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Buckeye Retirement Co. LLC Ltd. v. Bullough (In re Bullough)

Plaintiff judgment creditor brought an adversary proceeding against defendant bankruptcy debtor, alleging that a discharge was not warranted under 11 U.S.C. § 727(a)(3), (4) and (5) based on the debtor's false oaths in his schedules and statements, the debtor's failure to maintain adequate records, and the debtor's failure to account for a significant asset. The bankruptcy court conducted a trial.
Ruling: 
Discharge denied due to sophisticated debtor's false oaths and failure to keep adequate records.
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In re Gonzalez

In a voluntary bankruptcy case, debtor presented her chapter 13 plan to the court for confirmation. Two creditors objected to the plan and moved to compel debtors to make payments and assume or reject an executory contract.
Ruling: 
Debtor's proposed chapter 13 plan was not confirmable since the plan did not provide for the debtor assuming an executory contract.
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Neely v. Smith (In re Neely)

The debtor appealed two interlocutory orders of the bankruptcy court. The first order denied his 11 U.S.C. § 706(a) motion to convert from a Chapter 7 to a Chapter 13 bankruptcy. The second order withdrew the first order, granted the motion to convert, and then immediately reconverted the debtor's case to a Chapter 7 case.
Ruling: 
Order denying conversion was revoked, and case was remanded for consideration of whether debtor bad faith existed since strong presumption in favor of conversion exists.
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In re Blair

Debtors filed a voluntary chapter 7 petition and elected the Texas exemptions, including the generous homestead exemption. Movant unsecured creditor objected to the claim of exemption, arguing that the debtors were subject to the $125,000 cap on their homestead exemption provided in 11 U.S.C. § 522(p).
Ruling: 
Debtors'payments made during the 1,215 days prior to filing that increased their homestead's equity value did not create an interest in real property and thus were not subject to the statutory cap on electing a state homestead exemption.
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Kirchner v. Sticht (In re Sticht)

Plaintiffs, several buyers or intended buyers of homes built by debtors, brought consolidated adversary proceeding seeking denial of a discharge of debtors'obligations to them pursuant to 11 U.S.C. § 727 and a determination that debtors'debts to them were not dischargeable under 11 U.S.C. § 523.
Ruling: 
Debtor builders were denied discharge since the numerous errors and omissions in their schedules amounted to a reckless disregard for the truth.
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In re Hettler

Plaintiff creditor brought an adversary proceeding against defendant bankruptcy debtors, alleging that the creditor's state court judgment against the debtors established willful and malicious injury to the creditor and thus the judgment debt was not dischargeable under 11 U.S.C. § 523(a)(6) based on collateral estoppel. The creditor moved for summary judgment.
Ruling: 
State jury findings of actual malice sufficiently established willful and malicious injury under the Code and thus judgment was nondischargeable.
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