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In re Machine Maintenance Specialists Inc.

Ruling
Debtors' attorneys who never filed application for approval to represent debtor ordered to turn over retainer.
Procedural posture

A United States Trustee (UST) filed a motion for an order compelling attorneys who acted as a debtor's chapter 11 bankruptcy counsel before his case was converted to chapter 7 to turn over property of the estate, their retainer, pursuant to 11 U.S.C.S. § 542(a). One of the attorneys filed a motion for approval of employment of counsel for debtor nunc pro tunc due to extraordinary circumstances.

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Commercial opinion summary, case decided on November 16, 2010 , LexisNexis #0111-058

In re St. Bernard

Ruling
Plan confirmed on condition that debtor maintain insurance on vehicles securing debt and pay all motor vehicle taxes.
Procedural posture

A chapter 11 debtor sought confirmation of its second amended plan of reorganization and final approval of its disclosure statement.

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Consumer opinion summary, case decided on August 31, 2010 , LexisNexis #0111-066

Michigan Tractor v. Red Top Rentals Inc. (In re Red Top Rentals Inc.)

Ruling
Removal of creditor's prepetition action by guarantor, debtor's president, was proper.
Procedural posture

Creditor brought a pre-petition suit in state court against defendants, the debtor and its guarantor, who had executed a guaranty of the debtor's obligations to the creditor securing financed equipment as collateral. The defendants removed the case after filing the chapter 11 petition under 28 U.S.C.S. § 1452. The issue was whether the president's removal was timely under the 90 day term of Fed. R. Bankr. P. 9027(a)(2).

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Commercial opinion summary, case decided on January 11, 2010 , LexisNexis #0410-064

In re Greektown Holdings LLC

Ruling
Debtor could assume executory contract where formal notice of default had never issued.
Procedural posture

A chapter 11 debtor moved for entry of an order authorizing assumption of an executory contract concerning the construction and operation of a casino. The city, which was a party to the contract, objected on the grounds that the debtor was in default, was legally incapable of curing the nonmonetary defaults, and had not provided any evidence of its ability to promptly cure the defaults or provide adequate assurance of performance.

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Commercial opinion summary, case decided on May 13, 2009 , LexisNexis #0709-046

In re Greektown Holdings LLC

Ruling
Creditor's motion to compel debtor to assume or reject construction contract denied where postpetition payments were current and project was nearing completion.
Procedural posture

Pursuant to 11 U.S.C.S. § 365(d)(2), a general contractor moved to compel the chapter 11 debtors to assume or reject a construction contract between the contractor and the debtors. If assumed, the contractor sought an adequate assurance of future performance.

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Commercial opinion summary, case decided on December 16, 2008 , LexisNexis #0309-076

In re Beckerman

Ruling
Case ordered converted or dismissed where cessation of 401(k) plan payments and a tighter budget would allow debtors to support chapter 13 plan.
Procedural posture

The United States Trustee filed a motion to dismiss chapter 7 debtors' case for abuse pursuant to 11 U.S.C.S. § 707(b).

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Consumer opinion summary, case decided on February 04, 2008 , LexisNexis #0408-050

In re Heath

Ruling
Debtor's loss of employment was a special circumstance rebutting the presumption of abuse.
Procedural posture

The United States trustee brought a motion to dismiss for abuse debtor's converted chapter 7 case, pursuant to 11 U.S.C. § 707(b)(2) and (b)(3). The issue was whether debtor's loss of her job constituted special circumstances that rebutted the statutorily defined presumption of abuse, and whether the totality of the circumstances demonstrated abuse.

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opinion summary, case decided on July 06, 2007 , LexisNexis #0807-047

In re Signature Developers Inc.

Ruling
Trustee could sell subdivision lots free and clear of restriction providing that debtor was the exclusive builder for the development.
Procedural posture

A bankruptcy debtor developed a residential subdivision with a restriction providing that the debtor was the exclusive builder for improvements in the subdivision. The trustee moved pursuant to 11 U.S.C. § 363(f)(5) to sell certain lots in the subdivision to the mortgagee secured by the lots, free and clear of the builder restriction, and a creditor which purchased other lots subject to the restriction objected to the sale.

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opinion summary, case decided on August 24, 2006 , LexisNexis #1006-088

In re Guzior

Ruling
Debtor could not claim exemption in entireties property where state law allowed joint creditors to reach entireties interests.
Procedural posture

The chapter 7 trustee objected to a tenancy by the entireties property exemption claimed by debtor pursuant to 11 U.S.C. § 522(b)(2)(B).

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opinion summary, case decided on August 07, 2006 , LexisNexis #0906-019

In re Odette

Ruling
Debtors'guarantee of corporate debt did not cause them to exceed debt limits for chapter 13 and conversion from chapter 7 was allowed.
Procedural posture

The debtors moved to convert their chapter 7 case to chapter 13. Creditors filed objections. The first objection was that the debtors were ineligible under 11 U.S.C. § 109(e), because their total debts exceeded the chapter 13 unsecured debt ceiling. The second objection was that irrespective of the outcome of the first objection, the attempted conversion was in bad faith.

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opinion summary, case decided on August 07, 2006 , LexisNexis #0906-012