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western district of kentucky

In re Keith

Jan
25
2006
Ruling
Debtor failed to disclose an insurance fraud claim during the debtor's case and claimed a state law exemption after the case was reopened in bad faith.
Procedural posture

On November 5, 2003, an order of discharge on behalf of debtors was entered. On June 7, 2005, the trustee moved to reopen the case on the grounds that he learned that one debtor had an insurance fraud claim worth approximately $5,000 which was not reported during the course of the bankruptcy case. Debtors filed an amended Schedule B to list the fraud claim and asserted an exemption under Ky. Rev. Stat. Ann. § 427.010(1). The trustee objected.

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opinion summary, case decided on January 25, 2006 , LexisNexis #0306-007
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Simpson v. Simpson (In re Simpson)

Jan
24
2006
Ruling
Deficiency obligation was nondischargeable, and the debtor was ordered to make small payments since the debtor had assumed the debt pursuant to a prepetition divorce and the payments would not materially lower the debtor's standard of living below that of the former husband.
Procedural posture

Plaintiff former husband filed an adversary proceeding against defendant debtor, the former wife, to challenge the dischargeability of a debt for a vehicle, pursuant to 11 U.S.C. § 523(a)(15). The obligation for the debt incurred to purchase the vehicle had been assigned to the debtor as part of the prepetition divorce proceeding.

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opinion summary, case decided on January 24, 2006 , LexisNexis #0206-040
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In re WDS Inc.

Jan
17
2006
Ruling
Debtor's motion to alter an order granting turnover to a trustee of the debtor's counsel's retainer and related motions were denied since the counsel had not filed an application for employment and the debtor did not show extraordinary circumstances for why the application was not filed.
Procedural posture

The debtor initially filed for relief under chapter 11, and the matter was converted to a chapter 7 proceeding. The debtor filed a motion to alter or amend the court's earlier turnover orders related to attorney's fees, to approve the attorney's application for employment, nunc pro tunc, and the application to employ debtor's attorney for the estate.

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opinion summary, case decided on January 17, 2006 , LexisNexis #0306-011
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In re Jillians Entmt Holdings Inc.

Jan
13
2006
Ruling
Creditor landlord was granted rents due as an administrative expense.
Procedural posture

Creditor landlord filed an application seeking an order requiring the administrator of debtor's chapter 11 plan to pay, as an administrative expense, the amount owed to it under debtor's lease, pursuant to 11 U.S.C. §§ 503(a) and 507(a)(1), The administrator objected to the landlord's application.

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opinion summary, case decided on January 13, 2006 , LexisNexis #0206-106
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Burns v. Shelton (In re Shelton)

Oct
20
2005
Ruling
The earmarking doctrine did not apply to a postpetition mortgage transaction, and the mortgage was invalid since a prior transfer of the underlying property was avoided.
Procedural posture

Plaintiff chapter 7 trustee sought avoidance of the transfer of property between defendants, debtor and his father, pursuant to 11 U.S.C. § 549(a). The court previously determined that the "earmarking doctrine" did not apply to the transfer. The matter was remanded from the U.S. Court of Appeals for the Sixth Circuit.

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opinion summary, case decided on October 20, 2005 , LexisNexis #0106-123
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In re Trobaugh

Sep
12
2005
Ruling
Debtors were denied motion to avoid a creditor's lien on their mobile home since the lien was consensual.
Procedural posture

Debtors filed a voluntary petition for relief under chapter 13 of the Code. Debtors later moved to avoid creditor's lien on a mobile home pursuant to 11 U.S.C. § 522(f).

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opinion summary, case decided on September 12, 2005 , LexisNexis #0106-047
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