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5th Circuit

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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In re Madison

Movant, a chapter 13 trustee, filed an objection in several bankruptcy cases to proofs of claims filed by respondent creditors regarding certain postpetition, preconfirmation fees included in the proofs of claim. The creditors filed responses in each case.
Ruling: 
Reasonable attorneys'fees for work related to filing a proof of claim were awarded, but the court required the creditors to show that they were oversecured before the fees were allowed.
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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Order denying conversion was revoked, and case was remanded for consideration of whether debtor bad faith existed since strong presumption in favor of conversion exists.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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Jamrose v. DAmato (In re DAmato)

Defendant debtors filed a voluntary petition for relief under chapter 7 of the Code. Plaintiff creditors filed an adversary proceeding to have the debtors'debt to the creditors, and others similarly situated, deemed nondischargeable under 11 U.S.C. § 523(a)(6) (2002). The creditors filed a motion for summary judgment under Fed. R. Bankr. P. 7056.
Ruling: 
Debt was deemed nondischargeable where the debtors had willfully and maliciously caused injury to the creditor customers by using fraudulent marketing efforts.
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Cadle Co. v. Preston-Guenther (In re Guenther)

Plaintiff creditor brought an adversary proceeding against defendant Chapter 7 debtors, seeking the denial of a discharge pursuant to 11 U.S.C. § 727(a)(2), (a)(3) and (a)(4).
Ruling: 
Debtors were denied discharge where they did not dispute that they had made false oaths that were material.
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In re MAEDC Mesa Ridge

Debtor, a community housing development organization ("CHDO"), brought a motion for summary judgment in regards to an involuntary bankruptcy petition under 11 U.S.C. § 303(a) brought by the petitioning creditors against debtor.
Ruling: 
Involuntary petition was dismissed since a nonprofit debtor's participation in commercial activity did not make it a moneyed, business, or commercial corporation.
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