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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

Regions Bank v. Whisnant (In re Whisnant)

Ruling
Loan debt was nondischargeable due to creditor's reliance on debtor's false financial statements and tax returns.
Procedural posture

This adversary proceeding was before the court upon the Complaint for Nondischargeability of Debt filed by plaintiff creditor, requesting a judgment against defendant debtor in the amount of $ 431,637 plus interest, costs, and attorneys' fees, as well as a determination that the debt was nondischargeable under 11 U.S.C.S. § 523(a)(2)(B).

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Consumer opinion summary, case decided on August 25, 2009 , LexisNexis #0909-120

In re Southland Invs. Inc.

Ruling
Confirmation denied where plan relied on collection of speculative rent from tenants not subject to written leases.
Procedural posture

A debtor filed a voluntary petition commencing its bankruptcy case under chapter 11 of the Bankruptcy Code. The debtor filed a restated first amended plan of reorganization along with a restated first amended disclosure statement. A creditor filed an objection to the plan of reorganization.

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Commercial opinion summary, case decided on July 02, 2009 , LexisNexis #0809-092

In re Hurricane Memphis LLC

Ruling
Confirmation denied due to speculative nature of debtor's proposal to assume sublease and open nightclub.
Procedural posture

The debtor moved to sell personal property to the surviving reorganized debtor, and for approval of its assumption of the sublease of the premises on which it proposed to operate a night club. Objections to the debtor's motions were filed by creditors, the landlord of the real property, the county tax authority, and a primary lender; they also filed objections to confirmation of the debtor's proposed amended chapter 11 plan.

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Commercial opinion summary, case decided on June 10, 2009 , LexisNexis #0809-091

Helin v. Scott (In re Scott)

Ruling
Debt was discharged where debtor's alleged misrepresentations were not proximate cause of creditor's loss.
Procedural posture

Plaintiff judgment creditor sued defendant debtor on a claim that a $65,547 default judgment obtained against debtors, a husband and wife, in a state court was nondischargeable pursuant to 11 U.S.C.S. § 523(a)(2)(A).

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Consumer opinion summary, case decided on April 06, 2009 , LexisNexis #0609-010

In re Cowan

Ruling
Attorney suspended for six months due to failure to correct misstatements in disclosures and delays in filing debtors' petitions.
Procedural posture

Attorney challenged a determination by the bankruptcy court that determined that the attorney should be suspended from the practice of law in the Eastern District of Tennessee for six months based on his violation of Fed. R. Bankr. P. 2016(b) and his delay in filing bankruptcy petitions for his clients in a timely manner.

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Consumer opinion summary, case decided on March 17, 2009 , LexisNexis #0509-135

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

In re Westerfield

Ruling
Debtor's obligation to pay mortgage for former spouse was a domestic support obligation entitled to first priority among unsecured claims.
Procedural posture

Debtor filed a petition under chapter 13 of the Bankruptcy Code and a plan for repaying his creditors. The debtor's ex-wife filed a claim against the debtor's bankruptcy estate, and asserted that her claim was entitled to first priority among unsecured claims, pursuant to 11 U.S.C.S. § 507(a)(1), because it was based on a "domestic support obligation" under 11 U.S.C.S. § 101(14a). The debtor filed an objection to his ex-wife's claim.

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Consumer opinion summary, case decided on March 13, 2009 , LexisNexis #0509-011

Jahn v. United States (In re WinPar Hospitality Chattanooga LLC)

Ruling
Government forfeiture proceeding predicated on postpetition criminal activity did not violate stay.
Procedural posture

Plaintiff trustee filed an action against defendant government, alleging that the government violated the automatic stay of 11 U.S.C.S. § 362 by seeking the forfeiture of estate property. The trustee filed a motion for partial summary judgment, and the government filed a cross- motion for summary judgment and a motion to dismiss.

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Commercial opinion summary, case decided on February 06, 2009 , LexisNexis #0309-109

Davison v. Kanipe

Ruling
Postpetition negotiation of prepetition check did not violate stay where creditor returned funds upon notice of filing.
Procedural posture

Appellant debtor challenged an order of the United States Bankruptcy Court for the Eastern District of Tennessee that denied her motion to declare a violation of the automatic stay under 11 U.S.C.S. § 362, to impose sanctions against appellee creditor, a check cashing service that negotiated, postpetition, a pre-petition check she had written pursuant to the Deferred Presentment Services Act, authorized by Tenn. Code Ann. § 45-17-101 et seq.

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Consumer opinion summary, case decided on February 05, 2009 , LexisNexis #0309-040