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5th circuit

In re Reese

Ruling
Debtor's motion to accept executory contracts for sale of properties free of liens and over wife's objections since sales were fair and reasonable and in best interests of estate and creditors.
Procedural posture

Movant debtor filed a motion for authority to accept executory contracts for the sale of real and personal property and to sell real and personal property free and clear of liens pursuant to 11 U.S.C. § 363(b), a motion to approve an agreed order for the use of cash collateral, and a motion for authority to obtain secured credit under 11. U.S.C. § 364(b)(1). Respondent wife objected to the first two motions.

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opinion summary, case decided on July 11, 2006 , LexisNexis #0806-006

Catalyst Partners Inc. v. Layton

Ruling
Violation of non-competition agreement did not create nondischargeable debt.
Procedural posture

Defendant debtor filed a motion pursuant to Fed. R. Bankr. P. 7012(b) to dismiss and for judgment, and a motion for more definite statement, in connection with plaintiff former employer's adversary proceeding whereby it sought to have any amounts the debtor owed to the employer as a result of the debtor's breach of a noncompetition agreement declared nondischargeable under 11 U.S.C. § 523(a)(2)(A).

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opinion summary, case decided on July 10, 2006 , LexisNexis #1006-016

Spells v. Spence

Ruling
Court granted motion to remand state tort claim back to state court since chapter 13 case had been discharged and, thus, federal court did not have bankruptcy jurisdiction.
Procedural posture

In a medical malpractice claim, plaintiff individual sued defendant doctor, hospital, and unknown others, in state court. After defendants learned of the individual's chapter 13 bankruptcy filing, they removed the case to federal court pursuant to 28 U.S.C. § 1452(a). The individual moved to remand the case back to state court.

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opinion summary, case decided on July 10, 2006 , LexisNexis #0806-034

Provident Bank v. Merrick (In re Merrick)

Ruling
Creditor's nondischargeability claim was dismissed since creditor's reliance on debtor's misrepresentations was not justified.
Procedural posture

Plaintiff creditor filed an adversary proceeding against defendant debtor seeking a determination that its debt was nondischargeable pursuant to 11 U.S.C. § 523(a)(2)(A) and (B). The creditor argued that the debtor obtained money by false pretenses, a false representation, actual fraud and/or use of a materially false statement in writing regarding her financial condition.

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opinion summary, case decided on July 06, 2006 , LexisNexis #0806-056

First Natl Bank v. Parr (In re Parr)

Ruling
Balance of note owned by officer of debtor car dealership was dischargeable due to creditor's ongoing relationship with debtor and familiarity with financial conditions.
Procedural posture

Plaintiff creditor filed a complaint to determine that the remaining balance of defendant debtor's promissory note was nondischargeable, pursuant to 11 U.S.C. § 523(a)(2)(A), (a)(2)(B) and (a)(4).

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opinion summary, case decided on June 29, 2006 , LexisNexis #1006-013

In re Lara

Ruling
Plan was not confirmed since debtors needed to reduce certain expense allowances.
Procedural posture

Chapter 13 bankruptcy debtors, a husband and wife, sought confirmation of their proposed chapter 13 plan of reorganization. The bankruptcy trustee objected to confirmation of the plan on the grounds that the plan failed to satisfy the disposable income test of 11 U.S.C. § 1325(b)(1)(B).

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opinion summary, case decided on June 28, 2006 , LexisNexis #0706-080

In re Adams

Ruling
Disputed IRS debt could not be considered in debt limit calculation for chapter 13 eligibility.
Procedural posture

The chapter 13 trustee filed a motion to dismiss the debtor's case. The trustee alleged that the debtor was not eligible for relief under chapter 13 because he exceeded the debt limits in 11 U.S.C. § 109(e).

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opinion summary, case decided on June 27, 2006 , LexisNexis #1206-116

Spicer v. Spicer (In re Spicer)

Ruling
Debtor's liquidation of retirement account of which former spouse was entitled to one-half was fiduciary defalcation resulting in nondischargeable debt.
Procedural posture

Plaintiff, the former spouse of defendant bankruptcy debtor, brought an adversary proceeding against the debtor, seeking a determination that a debt to the spouse from the debtor's liquidation of a retirement account was not dischargeable under 11 U.S.C. § 523(a)(4) based on fiduciary defalcation. The bankruptcy court conducted a trial.

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opinion summary, case decided on June 26, 2006 , LexisNexis #1106-091

In re Huval

Ruling
Previously unemployed debtor spouse's post-petition employment was not grounds for dismissal for substantial abuse.
Procedural posture

The United States Trustee filed a motion, pursuant to 11 U.S.C. § 707(b), to dismiss the debtors'chapter 7 bankruptcy case.

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opinion summary, case decided on June 21, 2006 , LexisNexis #1106-098

In re Jefferson

Ruling
Debtors were allwoed to modify plan since they were acting in good faith and section 502(j) allowed for reconsideration for cause and based on equities of case.
Procedural posture

After their chapter 13 plan was confirmed, movant debtors sought to modify the plan because one of the debtors had becomes disabled postconfirmation. The debtors sought to surrender two vehicles to the respective creditors and to reduce their plan payments accordingly. Only one of the two affected creditors filed a response to the motion.

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opinion summary, case decided on June 14, 2006 , LexisNexis #0706-127