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Custom Kilns Inc. v. Pierron (In re Pierron)

Ruling
District court breach of contract judgment was dischargeable absent findings of false statements, false representations or actual fraud.
Procedural posture

Creditor filed a complaint against chapter 7 debtor seeking a determination that a federal district court judgment was nondischargeable under 11 U.S.C.S. § 523(a)(2), (4), and (6). The creditor filed a motion for summary judgment with respect to § 523(a)(2). The debtor also filed a motion for summary judgment.

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Consumer opinion summary, case decided on March 22, 2011 , LexisNexis #0611-083

Wallace v. Educational Credit Mgmt. Corp. (In re Wallace)

Ruling
Debtor granted time to meet second prong of Brunner test and establish dischargeability of student loan debt while making payments.
Procedural posture

Chapter 7 debtor filed an adversary proceeding against defendant creditor, seeking a determination that student-loan debt he owed the creditor was dischargeable under 11 U.S.C.S. § 523(a)(8) because requiring him to pay the debt would impose an undue hardship on him. The case was tried to the court.

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Consumer opinion summary, case decided on December 01, 2010 , LexisNexis #1210-121

Ransier v. Countrywide Home Loans Inc. (In re Seymour)

Ruling
Alleged improper execution was not grounds for avoidance of mortgage on which foreclosure was concluded prior to petition date.
Procedural posture

Chapter 7 trustee filed an adversary proceeding against defendant mortgagee, seeking a determination that he could avoid a mortgage which the mortgagee held on real property owned by chapter 7 debtors, pursuant to 11 U.S.C.S. § 544(a)(3). The trustee filed a motion for summary judgment.

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Consumer opinion summary, case decided on September 27, 2010 , LexisNexis #1110-093

Drown v. Hill (In re Phillips)

Ruling
Transfer of vehicle by debtor to father, who had made all loan payments, was not fraudulent.
Procedural posture

Chapter 7 trustee filed an adversary proceeding against defendant titleholder, a person who received title to a motor vehicle from a chapter 7 debtor, seeking a determination that he was allowed to avoid the transfer of the title as a fraudulent transfer, pursuant to 11 U.S.C.S. § 548. The trustee filed a motion for summary judgment.

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Consumer opinion summary, case decided on September 10, 2010 , LexisNexis #1110-096

Hares v. Sage Fin. Ltd. (In re Hares)

Ruling
Debtors could not invoke §506 to avoid judgment lien on property in which estate had no interest.
Procedural posture

Debtors filed this proceeding to avoid the judgment lien held by defendant creditor on a residence pursuant to 11 U.S.C.S. § 506. Debtors filed a Motion for Default Judgment. The court denied the Motion and dismissed the Complaint on the basis that the Complaint failed to articulate a legal basis upon which the judgment lien could be avoided. Debtors then filed the instant Fed. R. Civ. P. 59 Motion seeking reconsideration of the order.

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Consumer opinion summary, case decided on July 19, 2010 , LexisNexis #1010-033

JPMorgan Chase Bank v. Algire (In re Algire)

Ruling
Debt was dischargeable absent evidence of entrustment of property necessary to establish embezzlement.
Procedural posture

Plaintiff lender filed an adversary proceeding, asserting that defendant debtor used funds from a line of credit in contravention of the terms of the note, and therefore, the debt should be declared nondischargeable due to debtor's conduct. Count I was brought pursuant to 11 U.S.C.S. § 523(a)(4). Count II was brought pursuant to § 523(a)(6). The matter was before the court on the lender's motion for summary judgment.

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Consumer opinion summary, case decided on June 01, 2010 , LexisNexis #0810-053

In re Dowden

Ruling
Extension of stay in debtor's second case denied absent rebuttal of bad faith presumption.
Procedural posture

This matter came before the court for evidentiary hearing upon the chapter 13 debtors' Motion for Extension of Automatic Stay. Objections thereto were filed by two creditors.

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Consumer opinion summary, case decided on March 26, 2010 , LexisNexis #0810-077

In re Comscape Telecommunications Inc.

Ruling
Case dismissed as it was authorized by debtor's sole director who was removed and replaced prior to petition date.
Procedural posture

Bankruptcy debtors were direct and indirect subsidiaries of a non-debtor corporation and the corporation asserted that the putative sole director of the debtors who authorized the debtors' bankruptcy petitions was removed and replaced before the petitions were filed. The corporation moved to dismiss the debtors' bankruptcy cases as unauthorized.

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Commercial opinion summary, case decided on February 11, 2010 , LexisNexis #0410-023

In re Integrity Supply Inc.

Ruling
Company that located assets entitled to general administrative expense claim.
Procedural posture

Applicant, a company that locates unclaimed assets, filed a request for compensation for services in this chapter 7 case. The applicant sought allowance of an administrative claim under 11 U.S.C.S. § 503(b)(2) and § 330(a), as well as under various other theories, in the amount of $ 9,882.

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Commercial opinion summary, case decided on September 21, 2009 , LexisNexis #1109-031

In re Gregg

Ruling
Claim by creditor who paid buyer of debtor's mobile home without receiving title, which was still held by debtors, disallowed as debtors did receive a direct benefit and did not know the claimant had entered into a contract with the buyer.
Procedural posture

Debtors filed a petition under chapter 7 of the Bankruptcy Code, and a claimant filed an unsecured claim in the amount of $ 9,740 against the debtors' bankruptcy estate, alleging that the debtors were unjustly enriched at his expense. The chapter 7 trustee filed an objection to the claim.

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Consumer opinion summary, case decided on July 30, 2009 , LexisNexis #0909-045