Judge Cox

In re Falconridge LLC

Respondent debtor, an Illinois limited liability company ("LLC"), filed a petition under chapter 11. Movant bank filed an emergency motion to excuse compliance with 11 U.S.C. § 543(b) and to permit a receiver that was appointed by a state court to remain in place.
Ruling: 
Custodian's compliance with requirement to turn over property excused due to debtor LLC's mismanagement of property.
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Commercial case opionion summary, case decided on November 08,2007, LexisNexis #1207-048

Maxwell v. Barounis (In re Swiontek)

Plaintiff chapter 7 trustee moved for summary judgment in an action against defendant, the debtor's wife, seeking to void an alleged fraudulent transfer of real estate by the debtor to defendant pursuant to 11 U.S.C. § 544(b) and section 5 of the Illinois Uniform Fraudulent Transfer Act, 740 Ill. Comp. Stat. 160/5. The trustee also sought authority pursuant to 11 U.S.C. § 363(h) to sell the real estate. Defendant cross-moved for summary judgment.
Ruling: 
Avoidance of fraudulent transfer of entierties property to debtor's spouse did not revert property to entireties status and trustee could sell the property.
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Consumer case opionion summary, case decided on October 03,2007, LexisNexis #1107-030

Maxwell v. Barounis (In re Swiontek)

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant spouse of a bankruptcy debtor, seeking to avoid as fraudulent a transfer of the debtor's interest in a jointly owned marital home to the spouse, and seeking authority to sell the property. The trustee and the spouse cross-moved for summary judgment.
Ruling: 
Voluntary fraudulent transfer of debtor's interest in entireties property to spouse could be avoided and property could be sold by trustee.
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Consumer case opionion summary, case decided on October 03,2007, LexisNexis #1207-028

In re Enyedi

Chapter 7 trustee filed a motion to have a state court dismissal of a lawsuit filed by the debtors declared void ab initio on the grounds that the dismissal order violated the automatic stay under 11 U.S.C. § 362(a)(3), and have the defendants in the state court lawsuit assessed compensatory and punitive damages, and attorney fees and costs, based upon their willful violation of the automatic stay.
Ruling: 
Dismissal of state court action that was property of the estate violated stay.
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Dzikowski v. Gauthier (In re Gauthier)

Chapter 7 trustee filed a complaint that objected to the debtors'claim of exempt property, objected to the debtor's discharge, sought to avoid unauthorized postpetition transfers, and claimed that a money judgment was owed. The court held a hearing and issued findings.
Ruling: 
Discharge denied due to debtors'misrepresentations regarding sale of homestead and use of proceeds.
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In re JS II LLC

Pending before the court was debtors'Application for Authority to Employ a certain law firm as Special Litigation Counsel to represent debtors in litigation pending in state court. Debtors' application drew an objection from the plaintiffs and counter-defendants in the litigation (hereafter referred to as plaintiffs).
Ruling: 
Law firm defending members of debtor LLC in state court action approved as defense counsel for debtor in that same action.
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In re Kobus

The debtor filed a motion to convert her chapter 7 case to a chapter 13. The chapter 7 trustee objected. He alleges that the debtor failed to disclose that she transferred property to her father within one year of filing for bankruptcy relief. The debtor's motion followed the trustee's discovery of the transfer.
Ruling: 
Conversion to chapter 13 denied for lack of good faith.
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In re Flores

Movant creditor filed for relief from the automatic stay pursuant to 11 U.S.C. § 362(d) and an objection to respondent debtor's chapter 13 plan based on the debtor's lack of personal liability and lack of privity.
Ruling: 
Court denied automatic stay relief and overruled plan confirmation objection since debtor could include creditor's claim against debtor's property interest despite debtor's lack of privity with creditor.
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NSC Creditor Trust v. BSI Alloys Inc. (In re Natl Steel Co.)

Plaintiff trust brought an adversary proceeding against defendant contractor, seeking to avoid, as preferences, prepetition payments made by the chapter 11 debtor. The contractor asserted a new value defense under 11 U.S.C. § 547(c)(4) and an ordinary court defense under 11 U.S.C. § 547(c)(2). The trust moved for summary judgment as to three transfers. The contractor also moved for summary judgment.
Ruling: 
Avoidance of prepetition payments was denied since the transfers were deemed made in the ordinary course of business.
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In re Issaac

The debtor's chapter 13 plan proposed to satisfy a balloon payment on her mortgage in full, on or before the payment's due date, by way of a refinance or sale of her home. The plan further provided that if the balloon payment was not satisfied on or before its due date, the stay would automatically modify and the creditor would be allowed to pursue its remedies. The debtor moved for confirmation of her plan and the creditor objected.
Ruling: 
Debtor's proposed chapter 13 plan was denied confirmation since the partial liquidation plan was too speculative to be feasible.
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