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In re Works

Ruling
Property of estate could not be abandoned to creditor.
Procedural posture

The bankruptcy court previously entered an order which purported to abandon to creditor the claims of the debtor, a limited liability company, against one of its members. The creditor, who was also a member of the debtor, had been asserting the debtor's claims as derivative claims. The court sua sponte entered and order to show cause why its order for abandonment should not be vacated.

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Commercial opinion summary, case decided on August 28, 2007 , LexisNexis #1007-050

In re White

Ruling
Creditor's administrative expense claim filed three years after plan confirmation disallowed.
Procedural posture

Debtors filed a petition under chapter 13, and the court confirmed their plan for repaying their creditors. Just over three years later, a creditor filed a motion for allowance of an administrative expense claim under 11 U.S.C. § 503(b)(1)(A). The chapter 13 trustee filed an objection to the creditor's motion.

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opinion summary, case decided on July 03, 2007 , LexisNexis #0807-062

In re Opra

Ruling
Counsel sanctioned for failing to disclose debtor's tort claim until debtor sought to amend exemptions to protect settlement.
Procedural posture

After it was disclosed that debtor and her original counsel had failed to disclose the existence of a tort claim against a driver who caused a collision in which she was injured and after debtor sought to amend her exemptions to protect some part of the settlement later paid thereon, the trustee objected to debtor's amended exemptions and the court ordered counsel to show cause why he should not be sanctioned under Fed. R. Bankr. P. 9011(b).

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opinion summary, case decided on March 28, 2007 , LexisNexis #0507-035

In re Opra

Ruling
Debtor's former attorneys ordered to appear and show cause as to failure to disclose lawsuit proceeds on schedules.
Procedural posture

After debtor filed a voluntary chapter 7 bankruptcy petition, her new attorney filed amended schedules disclosing lawsuit proceeds valued at $100,000 and claiming an exemption in the newly-scheduled asset pursuant to 11 U.S.C. § 522(d)(5), (d)(11)(D) and (d)(11)(E). The trustee timely objected to the debtor's amended exemptions. The bankruptcy court held a hearing on the objection.

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opinion summary, case decided on August 25, 2006 , LexisNexis #0906-139

Shapiro v. Art Leather Inc. (In re Connolly N. Am. LLC)

Ruling
Summary judgment regarding avoidance and recovery claim was denied since issues of fact existed as to whether creditor benefitted from the transfers.
Procedural posture

Plaintiff trustee sued defendant accounts receivable seller pursuant to 11 U.S.C. § 550(a)(1), seeking to avoid and recover six prepetition payments that the chapter 7 debtor made to the purchaser of defendant's accounts receivable. Defendant moved for summary judgment.

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opinion summary, case decided on April 12, 2006 , LexisNexis #0506-134

In re Vinson

Ruling
Debtors were not permitted to claim state homestead exemption because the state law authorizing the exemption violated the Code by exempting non-debtor property.
Procedural posture

Petitioner debtors each claimed a homestead exemption in the same real property. Respondent trustee objected.

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opinion summary, case decided on January 27, 2006 , LexisNexis #0206-034