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eastern district of tennessee

Fugate v. Equity One Inc. (In er Graybeal)

Ruling
Erroneously released deed of trust could be preserved for benefit of estate over objection of junior lienholder.
Procedural posture

Chapter 7 trustee filed a motion for summary judgment in its action, which sought to preserve an avoided lien for the benefit of the estate pursuant to 11 U.S.C. § 551. Creditor filed a cross motion for summary judgment.

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opinion summary, case decided on August 17, 2006 , LexisNexis #0906-129

In re Tomlinson

Ruling
Trustee could not recover one-half value of Cessna aircraft from debtor's former spouse absent evidence of debtor's one-half ownership.
Procedural posture

Plaintiff chapter 7 trustee brought an adversary proceeding against defendant debtor's former husband, seeking to recover one-half the value of a Cessna aircraft pursuant to the provisions of 11 U.S.C. §§ 544 and 550. After denying the parties' cross-motions for summary judgment, the court held a hearing on the decisive issues, i.e., whether the debtor ever owned a one-half interest in the aircraft.

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opinion summary, case decided on August 07, 2006 , LexisNexis #0906-026

Still v. Gault (In re Gault)

Ruling
Concealment of prepetition property did not provide grounds for revocation of discharge.
Procedural posture

In a chapter 7 case, plaintiff trustee sued defendant debtor, seeking to revoke the debtor's discharge pursuant to 11 U.S.C. § 727(d)(2). The court denied the trustee's motion for default judgment and dismissed the complaint. The trustee then moved to vacate the dismissal.

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opinion summary, case decided on August 04, 2006 , LexisNexis #0906-066

In re Cole

Ruling
Case dismissed where debtor obtained credit counseling on filing date and not within 180 days before filing.
Procedural posture

Chapter 13 trustee filed a motion to dismiss debtor's bankruptcy case for failure to timely obtain the credit counseling briefing required by 11 U.S.C. § 109(h).

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opinion summary, case decided on July 31, 2006 , LexisNexis #0906-036

Webb v. Bible (In re Bible)

Ruling
Debtor's motion to dismiss creditor's proceeding seeking denial of discharge was granted in part and denied in part since creditor had sufficiently pled fraud claim.
Procedural posture

Plaintiff judgment creditor filed an adversary proceeding against defendants, a debtor and an individual, in which the creditor sought the denial of the debtor's discharge under 11 U.S.C. § 727(a)(2), (3), (4) and (5), a determination regarding the dischargeability of a debt under 11 U.S.C. § 523(a)(6), alleged fraudulent conveyances. Defendants moved to dismiss.

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opinion summary, case decided on July 13, 2006 , LexisNexis #0806-099

In re Long

Ruling
Plan was confirmed since court held that debtors could surrender vehicles in full satisfaction of debt and creditors could not assert unsecured claim for deficiency balance.
Procedural posture

Two creditors holding secured interests in debtors' motor vehicles challenged the confirmation of debtors'plan as not meeting the requirements of 11 U.S.C. § 1325(a)(1) and (a)(3), and did not provide for adequate protection pursuant to 11 U.S.C. § 361, as amended by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA").

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opinion summary, case decided on July 12, 2006 , LexisNexis #0806-112

In re Fee

Ruling
Court disallowed creditor's secured claim since confirmation order controlled and plan called for debtors to surrender vehicle in full satisfaction of debt.
Procedural posture

Debtors filed a voluntary bankruptcy petition. A creditor, which held a security interest in the debtors'automobile, filed a secured claim. A chapter 13 bankruptcy trustee filed an objection to the creditor's proof of claim.

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opinion summary, case decided on July 06, 2006 , LexisNexis #0806-116

In re Wagner

Ruling
Creditor's objection to plan confirmation was sustained since proposed plan violated equal monthly payment requirement.
Procedural posture

Objector creditor filed an objection to confirmation of the debtor's chapter 13 plan and asked the court to deny confirmation.

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opinion summary, case decided on May 22, 2006 , LexisNexis #0606-134

In re Ezell

Ruling
Court ruled that section 1325(a)(5)'s anti-cramdown paragraph allowed debtors to surrender creditor's collateral to satisfy an allowed secured claim in full.
Procedural posture

A contested matter was before the court on a secured creditor's Objection to Confirmation of Plan and Plan Terms, objecting to confirmation of debtors'chapter 13 plan.

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opinion summary, case decided on March 13, 2006 , LexisNexis #0406-078

In re Appalachian Star Ventures Inc.

Ruling
Trustee was denied motion for disgorgement of the debtor's attorney's retainer following conversion of case to chapter 7 since the attorney held a lien on the retainer and was not similarly situated with unsecured administrative claimants.
Procedural posture

With court approval, a bankruptcy debtor paid a retainer to an attorney to represent the debtor in chapter 11 proceedings, but the debtor's case was subsequently converted to chapter 7. The chapter 7 trustee moved for disgorgement of the attorney's retainer pursuant to 11 U.S.C. § 726(b) to allow a pro rata distribution to administrative claimants, including the attorney.

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opinion summary, case decided on March 09, 2006 , LexisNexis #0406-100