Judge Humphrey

In re Weixel

Chapter 7 debtors challenged a decision of the U. S. Bankruptcy Court for the Northern District of Ohio, which dismissed their chapter 7 case as an abuse under 11 U.S.C.S. § 707(b)(1) and (3).
Ruling: 
Case dismissed for abuse due to debtor's maintenance of upscale lifestyle while not dealing honestly with creditors.
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Consumer case opionion summary, case decided on June 28,2013, LexisNexis #0713-123

Ohio Dept of Job & Family Servs. v. Yuppa (In re Yuppa)

Plaintiff state department filed a motion for summary judgment in an adversary proceeding as to its complaint that alleged defendant chapter 7 debtor improperly obtained unemployment benefits through false pretenses, false representations, or actual fraud and that, as a result, the debt owed was nondischargeable under 11 U.S.C.S. § 523(a)(2)(A). The debtor did not respond to the summary judgment motion.
Ruling: 
Debtor's receipt of unemployment benefits based on knowingly false representations resulted in nondischargeable debt.
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Consumer case opionion summary, case decided on June 12,2013, LexisNexis #0713-013

Bank of N.Y. v. Sheeley (In re Sheeley)

Plaintiff bank filed a motion for summary judgment in its action against defendants, chapter 13 trustee and debtors, seeking a declaratory judgment that its mortgage was a valid first mortgage lien on the debtor's residence parcel and requesting that the mortgage be reformed to correct the legal description. Defendants filed a joint motion for summary judgment.
Ruling: 
Section 546 limitations period did not bar trustee from seeking declaration that mortgage was not a valid lien against debtor's residence.
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Consumer case opionion summary, case decided on March 04,2013, LexisNexis #0413-055

Johnston v. City of Middletown (In re Johnston)

Plaintiff chapter 7 debtor in a no asset case filed a complaint against defendants, the United States and a city, claiming that he was not a responsible person for trust fund taxes and that the seizure of his tax refund was a preference under 11 U.S.C.S. § 547. The court asked the parties to brief the issues of whether it had subject matter jurisdiction and whether it should abstain under 28 U.S.C.S. § 1334(c).
Ruling: 
Bankruptcy court lacked jurisdiction to determine if debtor was a "responsible person" for trust fund taxes and debtor lacked standing to pursue related preference claim.
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Consumer case opionion summary, case decided on December 21,2012, LexisNexis #0113-096

In re Visicon Shareholders Trust

Secured creditor moved to dismiss debtor hotel operator's chapter 11 case under 11 U.S.C.S. § 1112(b), and to prohibit debtor's use of its cash collateral. Debtor opposed those motions and requesting the use of cash collateral.
Ruling: 
Debtor hotel operator's case dismissed due to use of cash collateral to pay insiders and non- authorized professionals.
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Commercial case opionion summary, case decided on August 29,2012, LexisNexis #0912-094

Bennett v. Springleaf Fin. Servs. (In re Bennett)

The chapter 13 debtor asserted that the claim of creditor, a second mortgagee on debtor's residence, was subject to the uncontested property valuation set forth in debtor's alterations to her form plan. The creditor countered that its notice, in the plan, of the valuation of the residence and the stripping off of its lien was insufficient to comport with due process under Mullane.
Ruling: 
Creditor who failed to object was bound by valuation and stripping off of lien in plan.
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Consumer case opionion summary, case decided on January 12,2012, LexisNexis #0212-014

In re Maine

The debtor claimed funds in a bank account were exempt under Ohio Rev. Code Ann. § 2329.66(A)(9)(g), (3), as being Earned Income and Additional Child Tax Credits received from the federal government. The trustee objected, arguing the exempt status was lost once they were paid and deposited and once they were commingled with the debtor's other funds and expenses were paid by the debtor from the commingled funds.
Ruling: 
Lowest intermediate balance test applied to construe state exemption in favor of debtor while ensuring fairness to creditors.
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Consumer case opionion summary, case decided on November 18,2011, LexisNexis #1211-042

In re Smoak

Debtors filed an objection to a proof of claim of filed by a loan servicer as agent for creditor bank. At issue was the effect of a pooling and servicing agreement of some 8,226 sub- prime loans upon the standing of the bank, which was in physical possession of debtor's note.
Ruling: 
Loan servicer had standing to pursue proof of claim as agent for bank.
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Consumer case opionion summary, case decided on September 28,2011, LexisNexis #1111-098

In re Wilkerson

Debtors filed a petition under chapter 13 in June 2004, but subsequently converted their case to one under chapter 7. Almost five years later, the debtors filed a motion seeking payment of unclaimed funds. The court denied the debtors' motion without prejudice, and the debtors filed a renewed motion with a memorandum of law.
Ruling: 
Unclaimed funds were not property of the estate and properly paid to court by trustee.
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Consumer case opionion summary, case decided on August 02,2011, LexisNexis #0911-031

Slone v. Vallo (In re Starr)

Trustee and defendant, the ex-husband of debtor, cross-moved for summary judgment on plaintiff's claim that defendant was currently obligated to pay debtor $50,000 in connection with the couple's separation agreement and that said $50,000 thus was payable to debtor's estate under 11 U.S.C.S. § 541. The issue was whether defendant's grant of an open-ended mortgage was a "sale or conveyance" within the meaning of the separation agreement.
Ruling: 
Mortgage did not trigger debtor's former spouse's obligation under separation agreement to turn over payment "upon sale or conveyance."
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Consumer case opionion summary, case decided on March 24,2011, LexisNexis #0411-087

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