Judge Lloyd

Rennaker v. Pigg (In re Pigg)

Plaintiff, a Chapter 7 debtor's ex-wife, filed an adversary proceeding against defendant debtor, her ex-husband, seeking an order holding the debtor in contempt for violating an order entered by a state court and the bankruptcy court, and asked the court to revoke the debtor's discharge pursuant to 11 U.S.C.S. § 727(d)(1) and (2). The debtor filed a motion to dismiss his ex-wife's complaint.
Ruling: 
Debtor's former spouse's motion for revocation of discharge denied as time-barred.
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Consumer case opionion summary, case decided on August 29,2011, LexisNexis #1011-035

In re Alexander

Chapter 7 debtor filed pro se motions to compel the trustee to file an adversary proceeding against debtor's former bankruptcy attorney, to vacate an order of abandonment by the trustee of alleged malpractice claims against various counsel, to compel the U.S. Trustee's Office to provide debtor with a copy of a complaint review, and to appoint a new trustee.
Ruling: 
Motion to vacate order for abandonment of legal malpractice claims denied as untimely.
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Consumer case opionion summary, case decided on August 17,2011, LexisNexis #0911-030

K&D Energy v. KY USA Energy Inc. (In re KY USA Energy Inc.)

The Complaint of plaintiffs, including a party that had entered into a "farmout agreement" with defendant debtor, at its essence was a collection action. The matter was before the court on debtor's Motion for Partial Summary Judgment on Counts III and IV of the Complaint.
Ruling: 
Farmout assignments transferring and assigning oil and gas leases were not executory contracts.
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Commercial case opionion summary, case decided on February 22,2011, LexisNexis #0311-043

Heers v. Gibson Realty Inc. (In re Heers)

Plaintiff chapter 7 debtor filed a complaint against defendant realty company alleging conversion and a violation of 11 U.S.C.S. § 362 based upon the realty company's retention of the debtor's commission on the sale of certain property and the deduction of office expenses of another realtor. The debtor sought to recover her attorney's fees and costs and the sales commission.
Ruling: 
Realty company sanctioned for applying debtor agent's earned commission to outstanding expense account and office expenses in violation of stay.
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Consumer case opionion summary, case decided on August 31,2010, LexisNexis #0910-113

Flener v. Monticello Banking Co. (In re Estes)

Plaintiff trustee filed a complaint against defendant bank to avoid the bank's mortgage pursuant to 11 U.S.C.S. § 544. The trustee claimed that because the mortgage was signed by the chapter 7 debtors, but the note was signed on behalf of their company, the bank should have filed a hypothecating mortgage. The bank filed a motion to dismiss.
Ruling: 
Trustee could not avoid mortgage signed by debtors, although note was signed on behalf of debtors' company, due to constructive notice.
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Consumer case opionion summary, case decided on May 13,2010, LexisNexis #0810-024

Bluegrass Stockyards of Campbellsville LLC v. Smith (In re Smith)

Creditor initiated an adversary proceeding against defendant debtor seeking a judgment declaring a debt owed to the creditor by the debtor nondischargeable pursuant to 11 U.S.C.S. § 523(a)(2)(A) and (a)(4).
Ruling: 
Debt incurred when debtor manager purchased cattle for own personal profit using creditor's purchase account without immediately clearing the account was nondischargeable.
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Consumer case opionion summary, case decided on May 10,2010, LexisNexis #0810-011

Burton v. Mouser (In re Burton)

Plaintiffs, chapter 7 debtors, filed a complaint against defendants, a creditor and a county attorney, to recover damages for a violation of the automatic stay, 11 U.S.C.S. § 362, and a willful violation of the discharge injunction under 11 U.S.C.S. § 524. The matter was on remand from the United States District Court for the Western District of Kentucky for trial of the issue of whether the county attorney violated the discharge injunction.
Ruling: 
County attorney's continued prosecution of criminal theft charges violated discharge injunction.
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Consumer case opionion summary, case decided on March 16,2010, LexisNexis #0510-055

In re Resource Energy Techs. LLC

A creditor of a bankruptcy debtor, a limited liability company, brought an action in state court against the debtor and its principal members which was stayed with regard to the debtor when the debtor filed its bankruptcy petition. The debtor moved to hold the creditor in contempt for pursuing discovery from the members in the state action in violation of the automatic bankruptcy stay.
Ruling: 
Creditor did not violate stay by pursuing discovery against members of debtor LLC.
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Commercial case opionion summary, case decided on December 01,2009, LexisNexis #1209-111

Kappell v. Bunch (In re Bunch)

Plaintiff creditors brought an adversary proceeding against defendant bankruptcy debtors seeking denial of the debtors' discharge under 11 U.S.C.S. § 727 based on the debtors' inaccurate records and false statements, and seeking exception of the debt to the creditors from a remodeling project from discharge under 11 U.S.C.S. § 523 based on the debtors' fraud.
Ruling: 
Discharge denied due to debtor's failure to provide business records and failure to disclose assets.
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Consumer case opionion summary, case decided on September 21,2009, LexisNexis #1109-057

In re McKinley

The debtors filed for relief under chapter 13 of the Bankruptcy Code. The debtors filed a motion to avoid a lien asserted on property by the debtor's former wife. Further the debtors objected to a claim asserted by the former wife in the proceedings.
Ruling: 
Lien of debtor's former spouse could be stripped where there was no equity in the subject property.
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Consumer case opionion summary, case decided on June 10,2009, LexisNexis #0709-087

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