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Daneman v. National City Mortg. Co. (In re Cornelius)

Ruling
Mortgage that was improperly executed under state law avoided.
Procedural posture

A debtor filed for relief under chapter 7 of the Bankruptcy Code. Plaintiff trustee filed an adversary proceeding against defendant company to cancel a mortgage granted to the company, pursuant to 11 U.S.C.S. § 544, because the trustee alleged that the mortgage was defective under Ohio Rev. Code Ann. § 5301.01. The trustee filed a motion for summary judgment.

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Consumer opinion summary, case decided on July 14, 2009 , LexisNexis #0809-123

Rhiel v. Hook (In re Johnson)

Ruling
Transferee sanctioned for failure to appear for deposition in connection with avoidance proceeding.
Procedural posture

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant deponent concerning certain alleged transfers between the deponent and a bankruptcy debtor. The trustee moved for sanctions against the deponent for failing to appear for a scheduled deposition.

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Consumer opinion summary, case decided on June 25, 2009 , LexisNexis #0809-125

Rhiel v. Hook (In re Johnson)

Ruling
Judge's prior credibility finding in hearing on turnover motion was not grounds for recusal from subsequent adversary proceeding.
Procedural posture

In debtor's underlying chapter 7 case, plaintiff trustee filed a motion for turnover against the debtor. The trustee filed an adversary proceeding against defendant to recover the same property that was the subject of the motion for turnover and about which defendant testified previously. Pursuant to 28 U.S.C.S. §§ 144 and 455, defendant moved for the assigned judge to recuse herself from the proceedings.

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Consumer opinion summary, case decided on June 25, 2009 , LexisNexis #0809-126

Bostic v. Natl City Bank (In re DeRee)

Ruling
Trustee could sell property free and clear where mortgages encumbered only debtor's dower rights.
Procedural posture

Chapter 7 trustee filed a motion for summary judgment in its action, which sought a determination of the extent of the first mortgage and second mortgage held by mortgage holders on debtor's property with respect to the debtor's ownership interest, and also sought authorization to sell the ownership interests of both the debtor and defendant wife in the property pursuant to 11 U.S.C.S. § 363(h).

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Consumer opinion summary, case decided on March 26, 2009 , LexisNexis #0509-043

Terlecky v. Countrywide Home Loans Inc. (In re Baruch)

Ruling
Trustee could avoid mortgage that was not validly recorded.
Procedural posture

Chapter 7 trustee moved for summary judgment on his claims against creditor, which sought, in his capacity as a bona fide purchaser under 11 U.S.C.S. § 544(a)(3), to avoid a mortgage the debtor granted the creditor on her home, sought to preserve the mortgage for benefit of the debtor's estate pursuant to 11 U.S.C.S. § 551, requested the court to disallow any and all claims held by the creditor arising under the mortgage.

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Consumer opinion summary, case decided on February 23, 2009 , LexisNexis #0509-049

Stubbins v. Wells Fargo Bank (In re Gibson)

Ruling
Unperfected mortgage evidenced by affidavit avoided as trustee's interest as hypothetical lien creditor had priority under state law.
Procedural posture

Plaintiff, the chapter 7 trustee, sought to avoid defendant lender's interest in debtors' real property pursuant to 11 U.S.C.S. § 544(a), on the basis that the lender failed to record the mortgage document executed by the debtors, but rather filed an affidavit of facts relating to title. The original mortgage was not filed in the office of the county recorder. The trustee moved for summary judgment.

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Consumer opinion summary, case decided on September 29, 2008 , LexisNexis #1108-014

In re Coffman

Ruling
Confirmation denied due to failure of plan to cure prepetition arrearages by lease termination date.
Procedural posture

A creditor objected to the confirmation of debtors'chapter 13 plan on the ground that the plan proposed a disparate treatment of claimants receiving conduit payments and that the plan did not provide for full payment of the creditor's arrearage claim by the lease termination date.

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Consumer opinion summary, case decided on September 24, 2008 , LexisNexis #1008-075

In re McCullum

Ruling
Intention to sell home did not entitle debtors to modify second mortgage nor did inclusion of fixtures and rents as additional security.
Procedural posture

Debtors filed a petition under chapter 13 of the Bankruptcy Code, and a bank that held a second mortgage on the debtors' residence filed a proof of secured claim in the amount of $ 66,547. The debtors filed a motion to value the bank's claim, contending that the claim should be split into a secured claim in the amount of $ 45,842, and an unsecured claim in the amount of $ 20,704, pursuant to 11 U.S.C.S. § 506(a). The bank opposed the motion.

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Consumer opinion summary, case decided on September 23, 2008 , LexisNexis #1108-051

Gunter v. Kevin OBrien & Assocs. Co. LPA (In re Gunter)

Ruling
Bankruptcy court declined to sanction creditor for obtaining state court judgment in unwitting violation of discharge and vacting the judgment upon notice.
Procedural posture

Chapter 7 debtor sought to sanction defendant, the law firm for a creditor, for violations of the discharge injunction set forth in 11 U.S.C.S. § 524(a)(2).

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Consumer opinion summary, case decided on June 17, 2008 , LexisNexis #0708-103

Powers v. Powers (In re Powers)

Ruling
Debtor's deposit of check payable to former spouse into account in debtor's name only resulted in nondischargeable debt.
Procedural posture

Plaintiff judgment creditor filed a motion for summary judgment in his action against defendant chapter 7 debtor, seeking a determination that a state court judgment for damages and a state court judgment for attorney fees were excepted from discharge under 11 U.S.C.S. § 523(a)(2)(A) and § 523(a)(4).

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Consumer opinion summary, case decided on March 27, 2008 , LexisNexis #0508-010