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District of michigan

In re McGillis

Ruling
Confirmation denied due to improper calculation of disposable income.
Procedural posture

Debtors moved to confirm their chapter 13 plan over the chapter 13 trustee's objection. The chapter 13 trustee objected because the debtors allegedly were not committing to their unsecured creditors all of their disposable income as required by 11 U.S.C. § 1325(b). The chapter 13 trustee also asserts that the debtors'plan was not proposed in good faith.

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opinion summary, case decided on May 18, 2007 , LexisNexis #0607-117

In re Zaporski

Ruling
Case dismissed for substantial abuse where debtor's filing was due to excessive entertainment and lifestyle expenses and debtor could support chapter 13 plan.
Procedural posture

The United States Trustee filed a motion to dismiss chapter 7 debtor's case for abuse under 11 U.S.C. § 707(b)(2) and (3).

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opinion summary, case decided on April 17, 2007 , LexisNexis #0607-010

In re JS II LLC

Ruling
Law firm defending members of debtor LLC in state court action approved as defense counsel for debtor in that same action.
Procedural posture

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).

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opinion summary, case decided on April 13, 2007 , LexisNexis #0807-073

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

Craig-Likely v. Wells Fargo Home Mortg. (In re Craig-Likely)

Ruling
Mortgage creditor waived right to claim postpetition escrow deficiency due to failure to provide debtor with notice of changes in payments.
Procedural posture

Appellant chapter 13 debtor sought review of an order issued by the bankruptcy court, which denied the debtor's motion to foreclose appellee mortgagee from asserting a postpetition arrearage claim that resulted from a deficiency in the escrow account for insurance premiums and tax payments.

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opinion summary, case decided on March 02, 2007 , LexisNexis #0707-053

In re Sanchez

Ruling
Workers' compensation settlement proceeds were exempt only to the extent necessary for the support of debtor and dependents.
Procedural posture

The debtor filed for relief under chapter 7 and claimed that two bank accounts were exempt. The trustee objected to the claimed exemptions and filed a motion for summary judgment on the objections.

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opinion summary, case decided on January 31, 2007 , LexisNexis #0407-018

Condon v. Brady (In re Condon)

Ruling
Denial of motion to convert to chapter 13 vacated due to misapplication of good faith standard.
Procedural posture

Appellant debtor challenged the Bankruptcy Court for the Southern District of Ohio's denial of his motion to convert his chapter 7 case to chapter 13. The bankruptcy court found that his motion to convert was filed in bad faith. Appellees were representatives of a certified class of persons who sued debtor for tortious conduct in the District Court for the Southern District of Ohio.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on January 12, 2007 , LexisNexis #0207-099

Valley X-Ray Co. v. VPA PC

Ruling
Trustee could not recover alleged fraudulent conveyance from professional corporation that formed LLC with others to purchase involuntary debtor's assets.
Procedural posture

Appellant, the chapter 7 trustee of a corporate debtor, sought review of a summary judgment granted by the bankruptcy court in favor of appellee, a Michigan professional corporation, in appellant's adversary proceeding seeking to force appellee to disgorge money it obtained through a transaction that appellant claimed was a fraudulent conveyance under 11 U.S.C. § 548(a)(1) and Mich. Comp. Laws §§ 566.35 and 566.38.

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opinion summary, case decided on January 03, 2007 , LexisNexis #0207-028

In re Particka

Ruling
Secured creditor was entitled to claim a deficiency upon debtor's surrender of vehicle.
Procedural posture

Creditor, a finance company, objected to the provision of a Chapter 13 plan proposed by debtors under which the debtors offered to surrender a vehicle in which the creditor had a secured interest in full satisfaction of the claim thereon, as they claimed was permitted by the so-called "hanging paragraph" added to 11 U.S.C. § 1325(a)(9) by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA").

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opinion summary, case decided on November 17, 2006 , LexisNexis #0107-078

Naper v. Carroll

Ruling
Leave to appeal denial of request for extension of stay denied where debtor could not show substantial change in financial situation between filings.
Procedural posture

Appellant debtor filed a motion for leave to appeal an order from a United States bankruptcy court, which denied the debtor's request pursuant to 11 U.S.C. § 362(c)(3) for an extension of the 30-day automatic stay that went into effect after she filed her second bankruptcy petition. Appellee creditor filed an objection to the debtor's motion for leave to appeal.

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opinion summary, case decided on October 16, 2006 , LexisNexis #1106-037