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Mostoller v. Saxon Mortg. Servs. (In re Hunter)

Ruling
Note holder was proper party to seek relief from debtor where note anticipated possible transfer.
Procedural posture

Trustee filed an adversary proceeding seeking a determination, pursuant to 11 U.S.C.S. § 506, of the nature, extent, and priority of defendants' lien, if any, on the debtor's residential real property. Defendants filed a motion on the pleadings, which was converted to a motion for summary judgment.

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Consumer opinion summary, case decided on February 16, 2012 , LexisNexis #0312-080

In re Greene

Ruling
Stay pending appeal and supersedeas bond denied in appeal arising from contested matter under Rule 9014 rather than an adversary proceeding.
Procedural posture

A bank filed a motion for stay pending appeal pursuant to Fed. R. Bankr. P. 8005 with respect to an order approving a chapter 7 trustee's final report, approving the trustee's application for allowance of compensation and reimbursement of expenses, and approving the trustee's attorney's application for compensation. The bank also sought entry of a supersedeas bond pursuant to Fed. R. Civ. P. 62(d) and Fed. R. Bankr. P. 7062.

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Consumer opinion summary, case decided on January 31, 2012 , LexisNexis #0312-066

Smoky Mt. Title Inc. v. Tennessee State Bank (In re Thomas Homes LLC)

Ruling
Deed of trust erroneously recorded after quit claim deed to debtor was superior to claim of trustee.
Procedural posture

Plaintiffs title company and private trustee, sought a determination that one of the defendants, a bank, held a lien superior to the interests of all other defendants in the real property in issue. Although the bank's lien had been recorded, a quit claim deed had previously been recorded conveying the property from the borrowers to chapter 7 debtor home builder. Its chapter 7 trustee asserted he had a superior claim under 11 U.S.C.S. § 544(a)(3).

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Commercial opinion summary, case decided on January 17, 2012 , LexisNexis #0612-094

In re Hicks

Ruling
Involuntary petition was proper where there was no bona fide dispute as to liability for petitioning creditors' claims.
Procedural posture

Petitioner banks filed a petition pursuant to 11 U.S.C.S. § 303(h), seeking entry of an order which placed a debtor into chapter 7 bankruptcy. The debtor opposed the petition, claiming, inter alia, that the petition could not be granted because there was a bona fide dispute as to amounts the banks claimed.

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Consumer opinion summary, case decided on November 30, 2011 , LexisNexis #0112-037

Newton v. Sims (In re Sims)

Ruling
Transfer for less in value than debtor paid that made debtor insolvent avoided as constructively fraudulent.
Procedural posture

Chapter 7 trustee filed an adversary proceeding against defendants, a debtor's son and daughter-in-law, seeking a determination that he could avoid a transfer the debtor made to her son seven months before she declared bankruptcy, pursuant to 11 U.S.C.S. § 548(a). The parties filed cross-motions for summary judgment.

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Consumer opinion summary, case decided on November 30, 2011 , LexisNexis #0112-025

Tennessee Educ. Lottery Corp. v. Faulconer (In re Faulconer)

Ruling
Debt owed by retailers to state lottery corporation for proceeds and unsold tickets was nondischargeable due to fiduciary defalcation.
Procedural posture

Plaintiff, the Tennessee Education Lottery Corporation (TELC), filed a complaint against defendant Chapter 7 debtors to determine the dischargeability of a debt that arose from a state court judgment under 11 U.S.C.S. § 523(a)(4). The TELC filed a motion for summary judgment.

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Consumer opinion summary, case decided on October 12, 2011 , LexisNexis #1111-017

In re Daley

Ruling
Funds in IRA involved in prohibited transaction were not exempt.
Procedural posture

Debtor filed a petition under Chapter 7 of the Bankruptcy Code, and a trustee was appointed to administer the debtor's bankruptcy estate. The trustee filed an objection to the debtor's claim that $61,646 he had in an individual retirement account ("IRA") was exempt from creditors' claims under Tenn. Code Ann. § 26-2-105(b) and 11 U.S.C.S. § 522(b)(3)(C).

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Consumer opinion summary, case decided on October 11, 2011 , LexisNexis #1111-009

Khan v. Regions Bank (In re Khan)

Ruling
Chapter 7 debtor in no asset case lacked standing to pursue objection to lender's proof of claim.
Procedural posture

Plaintiff Chapter 7 debtor filed an amended complaint against defendant bank seeking to disallow a proof of claim pursuant to 11 U.S.C.S. § 502(b)(1), asking the court to declare the bank's lien securing the claim void pursuant to 11 U.S.C.S. § 506(d), requesting compensatory and punitive damages pursuant to 11 U.S.C.S. § 105(a). The bank moved to dismiss for lack of subject matter jurisdiction, alleging that the debtor lacked standing.

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Consumer opinion summary, case decided on September 29, 2011 , LexisNexis #1111-007

Farmer v. Racsko (In re Racsko)

Ruling
Transfer to debtor's former spouse for less than equivalent value was constructively fraudulent and avoidable.
Procedural posture

Adversary plaintiff, the chapter 7 trustee, brought an action against defendant debtor, averring that the debtor fraudulently transferred funds in the amount of $79,973.27 to a trust of which she was trustee, and seeking to avoid and recover the transfer pursuant to 11 U.S.C.S. §§ 548(a), 544(b)(1), and 550(a), and in conjunction with Tenn. Code Ann. § 66-3-305 (2004).

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Consumer opinion summary, case decided on September 14, 2011 , LexisNexis #1011-123

BankEast v. Shirley (In re Shirley)

Ruling
Transfers made to debtor's mother and to living trust were avoidable as made with intent to hinder, delay or defraud creditors and for less than equivalent value while insolvent or rendered insolvent.
Procedural posture

Plaintiff, the authorized representative of Chapter 11 debtors' bankruptcy estate, sought to avoid, pursuant to 11 U.S.C.S. § 548(a) and § 544(b)(1), in conjunction with Tenn. Code Ann. § 66-3-305(a), transfers of real property from the debtors to defendants, the mother of one of the debtors and the debtors' revocable living trust, and to recover the real property, or its value, pursuant to 11 U.S.C.S. § 550(a).

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Consumer opinion summary, case decided on September 12, 2011 , LexisNexis #1011-054