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Western District

Ingham County v. Strojny (In re Strojny)

Plaintiff creditor was a county that had entered into a public construction contract with defendant debtor. Due to a billing error, the debtor was overpaid for work on the project. The county obtained a judgment against the debtor. The county filed the instant adversary proceeding against debtor seeking a determination that the debt was nondischargeable pursuant to 11 U.S.C. § 523(a)(2)(A), (a)(4) and /or (a)(6).
Ruling: 
Judgment held by a county for overpayment to a debtor was deemed dischargeable since the debtor did not intend to injure the county by overbilling.
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In re Value Music Concepts

Plaintiff, in his capacity as the creditor representative appointed pursuant to 11 U.S.C. § 1123(b)(3) under debtors'confirmed chapter 11 plan, sued defendant creditors, seeking to recover, pursuant to 11 U.S.C. § 547(b), alleged preferential transfers for the benefit of unsecured creditors. Defendants moved for summary judgment.
Ruling: 
Creditor representative could pursue preference avoidance actions on debts assumed under a settlement agreement between debtors and creditors two weeks before chapter 11 filings.
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