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western district of kentucky

Fairdale Area Cmty. Ministries Inc. v. Hollingsworth (In re Hollingsworth)

Ruling
State court judgment for conversion by debtor from ministry employer was nondischargeable.
Procedural posture

Former employer filed an adversary proceeding against chapter 7 debtor, seeking a determination that the debtor owed the employer a debt in the amount of $6,967 that was nondischargeable under 11 U.S.C.S. § 523(a)(2), (a)(4), and (a)(6). The employer filed a motion for summary judgment.

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Consumer opinion summary, case decided on August 27, 2010 , LexisNexis #0910-077

Hutchinson v. Republic Bank & Trust Co. (In re Hutchinson)

Ruling
Claim for negligent preparation of mortgage that arose prepetition but was not discovered until after discharge was barred.
Procedural posture

Debtor brought an adversary proceeding against defendant mortgagee seeking a determination that any liability arising from the debtor's allegedly negligent conduct in preparing a mortgage for the mortgagee were previously discharged in the debtor's bankruptcy. The debtor moved for summary judgment.

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Consumer opinion summary, case decided on August 12, 2010 , LexisNexis #0910-035

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

Ruling
Trustee could not avoid mortgage signed by debtors, although note was signed on behalf of debtors' company, due to constructive notice.
Procedural posture

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.

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Consumer opinion summary, case decided on May 13, 2010 , LexisNexis #0810-024

Chase Bank USA v. Turnbow (In re Turnbow)

Ruling
Purchase of lawn mower within 90 days of petition date did not result in nondischargeable credit card debt.
Procedural posture

Creditor filed an adversary proceeding against chapter 7 debtors seeking a determination that debts were nondischargeable under 11 U.S.C.S. § 523(a)(2).

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Consumer opinion summary, case decided on May 10, 2010 , LexisNexis #0810-050

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

Ruling
Debt incurred when debtor manager purchased cattle for own personal profit using creditor's purchase account without immediately clearing the account was nondischargeable.
Procedural posture

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).

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Consumer opinion summary, case decided on May 10, 2010 , LexisNexis #0810-011

Countrywide Home Loans v. Dickson (In re Dickson)

Ruling
Bankruptcy court properly avoided preference period lien on debtor's manufactured home.
Procedural posture

Creditor appealed from an order of the Bankruptcy Court for the Eastern District of Kentucky granting judgment in favor of the chapter 13 debtor, allowing her to avoid the creditor's lien on her manufactured home, that was made of record during the preference period, in an adversary proceeding pursuant to 11 U.S.C.S. §§ 544, 547, 550, and 551.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on April 12, 2010 , LexisNexis #0610-098

Burton v. Mouser (In re Burton)

Ruling
County attorney's continued prosecution of criminal theft charges violated discharge injunction.
Procedural posture

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, 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.

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Consumer opinion summary, case decided on March 16, 2010 , LexisNexis #0510-055

In re Settmebre

Ruling
Discharge denied due to debtor's failure to preserve records.
Procedural posture

Plaintiff creditors filed an adversary complaint objecting to the discharge of defendant, a chapter 7 debtor, alleging that the debtor failed to keep or preserve recorded information, including books, documents, and records, from which the debtor's financial condition or business transactions might be ascertained, as required by 11 U.S.C.S. § 727(a)(3).

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Consumer opinion summary, case decided on February 01, 2010 , LexisNexis #0410-033

Streich v. Smith (In re Smith)

Ruling
Alleged debt to attorney with whom debtor had working relationship for alleged failure to compensate dismissed due to lack of credible evidence.
Procedural posture

Plaintiff creditor, an attorney that had shared office space, television advertising for legal services, and had some informal working relationship with the debtor, sought to deny the debtor a discharge under 11 U.S.C.S. § 523(a)(2)(A), 523(a)(4) and 523(a)(6). The creditor alleged he worked on numerous cases and paid many expenses for which he was not compensated, and that the debtor hid files and fees from him.

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Consumer opinion summary, case decided on January 20, 2010 , LexisNexis #0210-116

ELM Rd. Dev. Co. v. Buckeye Retirement Co. LLC Ltd. (In re Hake)

Ruling
Trustee's sale of debtor's property interests upheld.
Procedural posture

Appellants, debtor and shareholders, appealed from an order of the United States Bankruptcy Court for the Northern District of Ohio, Eastern Division at Youngstown, that granted summary judgment in favor of defendants, transferees, that certain carve-out assets were property of the bankruptcy estate and that restrictions on a the debtor's sale constituted an unenforceable restraint on alienation of property under Ohio law.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on December 04, 2009 , LexisNexis #1209-137