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middle district of tennessee

Nowlin v. RNR LLC

Ruling
Debtor's employer held in contempt and sanctioned for violation of discharge injunction.
Procedural posture

Plaintiff bankruptcy debtor brought an adversary proceeding against defendant, the debtor's employer, alleging that the employer violated the bankruptcy discharge injunction by continuing to deduct amounts from the debtor's paycheck which were not remitted to the bankruptcy trustee after the debtor's reorganization plan was paid in full by the employer as a sanction.

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Consumer opinion summary, case decided on August 27, 2009 , LexisNexis #1009-062

Lemeh v. Scott (In re Tom Nebel PC)

Ruling
Debtor's clients had sole claim to appeal bond funds held by court clerk.
Procedural posture

Chapter 7 trustee filed two adversary proceedings against a court clerk and the debtor's clients, concerning certain funds held by the clerk in which both the clients and the trustee claimed an interest. The disputed funds were deposited pursuant to a chancery court's order in a shareholder derivative action tried by the debtor on behalf of the clients. The trustee and the clients filed cross motions for summary judgment.

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Commercial opinion summary, case decided on March 16, 2009 , LexisNexis #0809-063

Barnhills Buffets Inc. v. SCS Gen. Contrs. Inc. (In re Barnhills Buffets Inc.)

Ruling
Contractor's equitable lien against debtor's leasehold interest in properties terminated on petition date.
Procedural posture

Defendant, a secured creditor of a chapter 7 debtor, and cross-defendant, a company that was alleged to be the debtor's alter ego, filed motions for summary judgment in defendant and counterplaintiff contractor's action, alleging that it had equitable liens against the leasehold interests of the debtor and the fee interests of the lessors, and that the company should be held jointly and severally liable with the debtor on the contractor's claims.

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Commercial opinion summary, case decided on November 19, 2008 , LexisNexis #0109-082

Prince v. Countrywide Home Loans Inc.

Ruling
Motion to withdraw reference of debtors' challenge to foreclosure sale denied.
Procedural posture

Debtors filed a motion to withdraw the reference, pursuant to 28 U.S.C.S. § 157(d), of their Real Estate Settlement Procedures Act (RESPA) and Fair Debt Collection Practices Act (FDCPA) claims against defendant bank.

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Consumer opinion summary, case decided on October 08, 2008 , LexisNexis #1108-034

IBM Southeast Emples. Fed. Credit Union v. Collins

Ruling
Plan confirmation did not provide basis for res judicata dismissal of trustee's proceeding based on debtor's prepetition right of action.
Procedural posture

After a bankruptcy debtor's reorganization plan was confirmed, appellee bankruptcy trustee brought an adversary proceeding against appellants, a credit union and its service organization, with regard to alleged mishandling of the debtor's sales tax account. The appellants sought review of the order of the Bankruptcy Court for the Middle District of Tennessee which denied a motion to dismiss the proceeding based on res judicata.

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Commercial opinion summary, case decided on September 17, 2008 , LexisNexis #1108-102

Kaye v. Carlisle Tire & Wheel Co.

Ruling
Bankruptcy court properly upheld debtor's settlement agreement with creditor executed more than 90 days prepetition.
Procedural posture

Appellant Trustee of the chapter 11 liquidating trust challenged a decision of the United States Bankruptcy Court for the Middle District of Tennessee, Nashville Division, that dismissed the Trustee's claims against appellee creditor. The creditor filed a cross-appeal.

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Commercial opinion summary, case decided on March 27, 2008 , LexisNexis #0408-100

In re Petro

Ruling
Above-median debtors' "projected disposable income" calculated in accordance with BAPCPA could not be evidence of bad faith.
Procedural posture

The Standing Chapter 13 Trustee for the Middle District of Tennessee filed objections to the debtors' proposed chapter 13 plan, asserting that the proposed plan failed to use the proper methodology to calculate the debtors' projected disposable income pursuant to 11 U.S.C. § 1325(b)(2), therefore had not been proposed in good faith. The trustee also objected to a telecommunications expense deduction of $350.

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Consumer opinion summary, case decided on January 23, 2008 , LexisNexis #0208-126

In re Petro

Ruling
Debtors who calculated projected disposable income as set forth under BAPCPA could not be found to have acted in bad faith.
Procedural posture

The Standing Chapter 13 Trustee for the Middle District of Tennessee filed objections to the debtors'proposed chapter 13 plan, asserting that the proposed plan failed to use the proper methodology to calculate the debtors' projected disposable income pursuant to 11 U.S.C. § 1325(b)(2), therefore had not been proposed in good faith. The trustee also objected to a telecommunications expense deduction of $350.

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Consumer opinion summary, case decided on January 23, 2008 , LexisNexis #0208-086

In re Mitchell

Ruling
Inclusion of negative equity in financing defeated purchase money security interest status and allowed for bifurcation of debt.
Procedural posture

Bankruptcy debtors' proposed chapter 13 plan provided for treatment of a claim of a creditor secured by the debtor's vehicle as secured only to the extent of the value of the vehicle. The creditor objected to bifurcation of its claim into secured and unsecured claims, asserting that 11 U.S.C. § 1325(a) (hanging paragraph referencing paragraph 5) precluded such bifurcation based on the creditor's purchase-money security interest ("PMSI").

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Consumer opinion summary, case decided on November 13, 2007 , LexisNexis #1207-022

In re Hayes

Ruling
Protection of hanging pargraph not available for non-purchase money security interest portions of debt.
Procedural posture

In proceedings that were consolidated for a decision, the debtors filed for relief under chapter 13, and had proposed in their chapter 13 plans to "strip down" the amounts owed to the creditors for financed vehicles. The creditors objected to the proposed plan payments, and claimed that they held purchase money security interests ("PMSI") for the full amounts financed pursuant to 11 U.S.C. § 1325.

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Consumer opinion summary, case decided on November 01, 2007 , LexisNexis #1207-123