NSC Creditor Trust v. BSI Alloys Inc. (In re Natl Steel Co.)
Mar
28
2006
Ruling
Avoidance of prepetition payments was denied since the transfers were deemed made in the ordinary course of business.
Procedural posture
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.
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Court
:
- 11 U.S.C.
In re Burrell
Mar
23
2006
Ruling
Debtor's case was dismissed since debtor did not meet the prefiling credit counseling requirements.
Procedural posture
A chapter 13 matter came before the court upon debtor's Motion for Order Allowing Additional Fifteen Days to File Credit Counseling Certification. The trustee opposed the motion.
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Court
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Shapiro v. First Franklin Fin. Corp. (In re Rechis)
Mar
23
2006
Ruling
Mortgage was avoided as a preferential transfer since the debtor's effort to exempt the property as entireties property after an 18-month delay was not allowed.
Procedural posture
Plaintiff chapter 7 trustee filed an adversary proceeding against defendants, creditors, seeking to avoid a mortgage as a preferential transfer. The trustee moved for summary judgment. The debtor amended her schedule to claim an exemption in the underlying real property as property held by the entireties. The trustee objected to the claimed exemption under the doctrine of laches.
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Court
:
- 11 U.S.C.
In re Lucre Inc.
Mar
20
2006
Ruling
Automatic stay was modified so that a creditor could move forward with efforts to relieve itself from two injunctions but not with regard to other issues including setoff rights.
Procedural posture
In a chapter 11 matter, an alleged creditor that furnished the use of its network moved for relief from an automatic stay with respect to its interconnection agreement with debtor telecommunications company. The creditor requested that the automatic stay be modified so that it could attempt to dissolve state court injunctions that were preventing it from discontinuing services to debtor notwithstanding debtor's alleged breach of the agreement.
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Court
:
- 11 U.S.C.
In re Albion Health Servs.
Mar
16
2006
Ruling
Court ruled that a state's claim for reimbursement of unemployment benefits to the debtor's former employees was not an excise tax entitled to priority.
Procedural posture
A bankruptcy debtor, a not-for-profit corporation that owned a hospital, ceased operation before filing its bankruptcy petition and its former employees received unemployment compensation from the state of Michigan. The state asserted a claim for reimbursement of the unemployment benefits which it paid, and the trustee objected to the allowance of the claim as a tax priority under 11 U.S.C. § 507(a)(8). The trustee moved for summary judgment.
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Court
:
- 11 U.S.C.
Andrus v. Ajemian (In re Andrus)
Mar
14
2006
Ruling
Court deemed an amount owed by the debtor to the debtor's former spouse to be dischargeable and not within an exception since the obligation was a property settlement.
Procedural posture
Plaintiff debtor sued defendant former spouse, seeking a determination that a debt of $146,184 he owed to her under a divorce judgment was a dischargeable debt and not within the exception to discharge of 11 U.S.C. § 523(a)(5). She filed a motion to dismiss or, alternatively, to abstain, a counter-complaint seeking a determination that the debt was non-dischargeable, and a summary judgment motion. Debtor filed his own summary judgment motion.
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Court
:
- 11 U.S.C.
Wells v. TCF Natl Bank (In re Hi Tech Fleet Serv.)
Mar
09
2006
Ruling
Court dismissed the trustee's complaint alleging avoidable transfers and demanding turnover since no provision in either the Code or case law allowed a chapter 7 trustee to bring an action challenging an asset sale consummated pursuant to court order in a chapter 11 proceeding.
Procedural posture
The matter came before the court on plaintiff chapter 7 trustee's motion for summary judgment. The trustee requested summary judgment on a two-count complaint seeking: (1) a determination of the amount, validity, and extent of defendant creditor's claim, and (2) avoidance of an allegedly unauthorized postpetition transfer of funds to the creditor.
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Court
:
Chase Manhattan Mortg. Corp. v. Shapiro (In re Lee)
Mar
06
2006
Ruling
Creditor's refinance mortgage was deemed not preferential since under the earmarking doctrine the debtor's estate was valued the same before and after the refinance transaction.
Procedural posture
Appellant creditor challenged the decision entered by the bankruptcy court, which granted summary judgment in favor of appellee trustee, in an adversary proceeding. The trustee moved for judgment upon his claim to avoid the creditor's mortgage as a preferential transfer under 11 U.S.C. § 547.
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Court
:
- 11 U.S.C.
In re Vinson
Jan
27
2006
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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Court
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Ingham County v. Strojny (In re Strojny)
Jan
05
2006
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.
Procedural posture
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).
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Court
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