Judge Scott

In re Pearce

The United States Trustee (UST) filed a motion to dismiss the chapter 7 debtors' case pursuant to 11 U.S.C.S. § 707(b)(1), citing a presumption of abuse under § 707(b)(2) and the totality of the circumstances under § 707(b)(3). By an agreed order, the parties resolved and dismissed that portion of the motion based on § 707(b)(2).
Ruling: 
Case dismissed for abuse as debtor enjoyed substantial gross income and could repay creditors from future earnings.
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Consumer case opionion summary, case decided on July 25,2012, LexisNexis #0812-129

Bringhurst v. Adams (In re Adams)

Plaintiff creditor filed a complaint against defendant chapter 7 debtor seeking a determination that a debt was excepted from discharge under 11 U.S.C.S. § 523(a)(15). The creditor moved for summary judgment.
Ruling: 
Family court order requiring debtor to buy out former spouse's interest in home, later reduced to judgment, was not dischargeable.
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Consumer case opionion summary, case decided on June 28,2012, LexisNexis #0912-124

Farmers Natl Bank of Cynthiana v. Lockridge (In re Lockridge)

Creditor bank filed an adversary action against defendant debtors seeking a determination that the debt owed to the bank was nondischargeable pursuant to 11 U.S.C.S. § 523(a)(2)(A) and (B). The bank also sought dismissal of the debtors' chapter 7 case under 11 U.S.C.S. § 707(a).
Ruling: 
Deficiency judgment was dischargeable absent evidence of intent to deceive or fraud.
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Consumer case opionion summary, case decided on May 31,2012, LexisNexis #0712-018

Shaw v. Farmers Deposit Bank (In re Shaw)

Plaintiff chapter 12 debtors filed an adversary proceeding against defendant bank, seeking a termination that they were entitled under 11 U.S.C.S. § 544(a) to avoid provisions of a settlement agreement they entered with the bank and a deed in lieu of foreclosure which they signed. The bank filed a motion to dismiss, and the parties agreed to treat that motion as a motion for summary judgment. The debtors filed a cross-motion for summary judgment.
Ruling: 
Farm was property of the estate where bank refused deed in lieu of foreclosure.
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Consumer case opionion summary, case decided on April 09,2012, LexisNexis #0512-021

Woodland Oaks Manor LLC v. Plybon (In re Plybon)

Plaintiff creditor, a nursing care facility, filed a complaint against defendant chapter 7 debtor seeking a determination that a judgment awarded by a state court was not subject to discharge pursuant to 11 U.S.C.S. § 523(a)(2)(A) and (a)(4). The creditor voluntarily withdrew the claim based on § 523(a)(2)(A).
Ruling: 
Debt to nursing home was nondischargeable due to debtor's failure to carry out contractual obligations to obtain Medicaid and cover remaining costs.
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Consumer case opionion summary, case decided on March 09,2012, LexisNexis #0412-049

Busenhart v. Repass (In re Repass)

Plaintiff filed a complaint to determine dischargeability of the debt of defendant debtors under 11 U.S.C.S. §§ 523, 1328. The complaint alleged that debtors committed "hundreds" of libelous and tortious acts that injured him and referred specifically to a posting in which he was referred to as a drug dealer. It appeared that § 523(a)(6) was the only applicable subsection of § 523(a). Debtors moved for summary judgment.
Ruling: 
Creditor collaterally estopped from pursuing dischargeability proceeding by adverse state court judgment.
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Consumer case opionion summary, case decided on December 02,2011, LexisNexis #0112-017

Kenneth E. Watts Real Estate Mgmt. v. Lister (In re Lister)

Creditor filed a complaint against defendant debtor seeking a determination that damage to his property caused by the debtor constituted a debt that was nondischargeable pursuant to 11 U.S.C.S. § 523(a)(6).
Ruling: 
Damage from debtor's deliberate vandalism of creditor landlord's property led to nondischargeable debt.
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Consumer case opionion summary, case decided on November 23,2011, LexisNexis #1211-121

In re Fletcher

The United States Trustee (UST) sought dismissal of a chapter 7 debtor's bankruptcy on the ground that the totality of the circumstances constituted abuse under 11 U.S.C.S. § 707(b)(3)(B).
Ruling: 
Case dismissed for abuse where debtor's 401(k) loan payments could more properly be used to fund plan.
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Consumer case opionion summary, case decided on November 10,2011, LexisNexis #1211-090

United States v. Waits (In re Waits)

Plaintiff Chapter 7 trustee sought to deny defendant debtor his Chapter 7 discharge pursuant to 11 U.S.C.S. § 727(a)(4)(A), § 727(a)(4)(D), and/or § 727(a)(6)(A).
Ruling: 
Misrepresentation regarding tax refund and failure to turn over complete returns were not grounds for denial of discharge.
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Consumer case opionion summary, case decided on September 09,2011, LexisNexis #1011-056

McDermott v. Edwards (In re Edwards)

Trustee brought an adversary proceeding against debtor, asserting that he should be denied a discharge under 11 U.S.C.S. § 727(a), because he concealed property of the estate, and made false statements as to the value of his property under oath.
Ruling: 
Discharge denied due to deliberate misstatement of value of assets.
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Consumer case opionion summary, case decided on July 01,2011, LexisNexis #0811-029

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