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western district of kentucky

In re Tandy

Ruling
Creditor's interest rate was properly modified in debtor's confirmed plan since the taxed property was not the debtor's principal residence.
Procedural posture

A bankruptcy debtor's plan was confirmed and provided for interest on amounts due to secured creditors, but a creditor which purchased certificates of delinquency from a state for the debtor's unpaid property taxes sought the higher statutory interest rate set out in the certificates. The creditor objected to the order confirming the debtor's plan and moved to amend the plan.

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opinion summary, case decided on April 18, 2006 , LexisNexis #0506-062

County of Simpson v. Palma (In re Palma)

Ruling
Former county sheriff's debt to county for failing to account for certain county funds was deemed nondischargeable due to fiduciary defalcation.
Procedural posture

Plaintiff county brought an adversary proceeding against defendant bankruptcy debtor, a former county sheriff, seeking a declaration that a debt to the county for the sheriff's failure to account for county funds was not dischargeable under 11 U.S.C. § 523(a)(4) based on fiduciary defalcation. The bankruptcy court conducted a trial.

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opinion summary, case decided on April 14, 2006 , LexisNexis #0506-051

Scherer v. Quality Communs. Inc. (In re Quality Communs. Inc.)

Ruling
Trustee was denied motion to amend complaint due to the untimely filing of the motion and the undue prejudice to the defendants.
Procedural posture

Plaintiff chapter 7 trustee asserted claims against defendants under 11 U.S.C. § 548 and 11 U.S.C. § 547. The trustee filed a motion for leave to file an amended complaint.

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opinion summary, case decided on March 29, 2006 , LexisNexis #0406-103

In re Thomas

Ruling
Company being sued by debtors over a lease were granted more time to move to have the state court action removed due to excusable neglect and debtors'lack of disclosure.
Procedural posture

The debtors and an oil and gas company had entered into an oil and gas lease. The debtors had filed suit against the company in state court seeking damages arising out of the oil and gas lease. The company filed a motion for enlargement of time to file a notice of removal of the state court action.

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opinion summary, case decided on March 29, 2006 , LexisNexis #0406-105

In re Bus. Intelligent Sys. LLC

Ruling
Court approved an application for payment of legal fees by the estate's counsel since the fees were actual and necessary.
Procedural posture

Before the court was a Final Application for Approval of Compensation for Services Rendered by debtor's counsel (the firm) during the period July 1, 2003 through June 15, 2005, and the objection of debtor and three individuals thereto.

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opinion summary, case decided on March 29, 2006 , LexisNexis #0406-083

Rawlings v. Tapp (In re Tapp)

Ruling
Creditor failed to demonstrate that the debtor's actions warranted denying a discharge.
Procedural posture

Plaintiff creditor brought an adversary proceeding against defendant bankruptcy debtor, seeking to preclude the debtor's discharge under 11 U.S.C. § 727(a)(2), (3) and (5) based on the debtor's transfer of assets, failure to maintain adequate records, and failure to explain the disposition of a deposit paid to the debtor by the creditor. The bankruptcy court conducted a trial.

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opinion summary, case decided on March 16, 2006 , LexisNexis #0406-024

In re Thermoview Indus.

Ruling
Court abstained from hearing the proceeding since state law issues predominated over bankruptcy issues and the administration of the estate was nearly complete.
Procedural posture

Plaintiff, a guarantor on a loan made to defendant debtor, filed suit in state court seeking reimbursement and/or indemnity from the debtor. The debtor removed the action to the bankruptcy court. The guarantor moved for remand to state court.

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opinion summary, case decided on March 14, 2006 , LexisNexis #0406-031

In re Precision Tool Die & Mach. Co.

Ruling
Court granted as reasonable and necessary most of the fee application but reduced as excessive billings for preparing the billing statements.
Procedural posture

Counsel for the official committee of unsecured creditors filed an application for allowance and payment of attorneys' fees and expenses. The debtor objected to the application, asserting that the fees charged were excessive, unreasonable, and disproportionate to the issues involved.

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opinion summary, case decided on February 22, 2006 , LexisNexis #0306-041

In re Robert L. Schmitt Co.

Ruling
Debtor's objection to a law firm's payment claim was overruled since the debtor failed to rebut the presumption created when the debtor listed the claim as uncontested on the debtor's schedules.
Procedural posture

A bankruptcy debtor's listed liabilities and confirmed plan of reorganization acknowledged an undisputed claim of a law firm which represented the debtor in tax matters, but the debtor subsequently objected to allowance of the law firm's claim.

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opinion summary, case decided on February 14, 2006 , LexisNexis #0306-139

In re Sturgill

Ruling
Lien of a creditor holding a security interest in a mobile home could not be modified under a proposed chapter 13 plan because the lien was on the debtors 'principal residence, but the lien on the land on which the home sat could be modified by the plan.
Procedural posture

Debtors filed for chapter 13 bankruptcy protection. Creditors, a security interest holder in the debtor's mobile home and a security interest holder in the land on which the mobile home sat, objected to confirmation of the plan. The court held a confirmation hearing on the plan.

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opinion summary, case decided on February 14, 2006 , LexisNexis #0306-099