6th Circuit

Followell v. United States (In re Gurley)

The debtor underwent a bankruptcy in a Chapter 11 proceeding. After the debtor's death, plaintiff personal representative reopened the debtor's case and sued defendant, the U.S. government, by its agency, the Internal Revenue Service (IRS), to determine liability for interest and penalties on taxes from before the bankruptcy filing. The parties filed cross-motions for summary judgment.
Ruling: 
Confirmation of debtor's plan did not discharge debtor's tax liability since it is a debt excepted from discharge.
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Burns v. Shelton (In re Shelton)

Plaintiff chapter 7 trustee sought avoidance of the transfer of property between defendants, debtor and his father, pursuant to 11 U.S.C. § 549(a). The court previously determined that the "earmarking doctrine" did not apply to the transfer. The matter was remanded from the U.S. Court of Appeals for the Sixth Circuit.
Ruling: 
The earmarking doctrine did not apply to a postpetition mortgage transaction, and the mortgage was invalid since a prior transfer of the underlying property was avoided.
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In re Lezdey

The debtors filed petitions for chapter 11 bankruptcy. The creditor filed a motion to dismiss under 11 U.S.C. § 1112.
Ruling: 
Debtors'cases were dismissed since their plans offered illusory promises of payment and were filed to delay the creditor.
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In re Lott

The bankruptcy court granted the chapter 7 trustee's motion to reopen the debtors' case. The issue was whether the wife debtor's interest in the proceeds of an action for the wrongful death of her mother were property of the estate. The trustee claimed that the debtor's interest in the wrongful death action proceeds was property of the estate because that interest, and the cause of action, arose on the prepetition date of death.
Ruling: 
Debtor's interest in the proceeds of a wrongful death action of her mother's estate was property of the estate since it was at least a prepetition contingent right to the proceeds.
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Yun Zhong Qui v. Ci Qing Zhou (In re Ci Qing Zhou)

Plaintiff judgment creditor brought an adversary proceeding against defendant bankruptcy debtor, seeking a determination that the judgment debt against the debtor for defamation and infliction of emotional distress was not dischargeable under 11 U.S.C. § 523(a)(6) based on the debtor's false accusations that the creditor committed sexual assaults.
Ruling: 
Judgment debt against the debtor for defamation and infliction of emotional distress was dischargeable since the schizophrenic debtor had believed the creditor sexually assaulted her and thus did not act maliciously toward the creditor.
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Berman v. Bill Fields Trucking (In re HNRC Dissolution Co.)

Plaintiff liquidating trustee filed preference actions against defendant, one of 38 similarly situated defendants. The trustee filed the preference actions after the statute of limitations had expired. The trustee subsequently moved for voluntary dismissal of the actions, which motion was granted. Defendant moved for sanctions pursuant to Fed. R. Bankr. P. 9011.
Ruling: 
Sanctions were not imposed against trustee who filed preference actions after statute of limitations period but withdrew them before sanctions motion was filed.
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Irby v. Fashion Bug (In re Irby)

Plaintiffs, discharged bankruptcy debtors, brought an adversary proceeding against defendant creditors alleging that the creditors violated the discharge injunction of 11 U.S.C. § 524 by continuing to report the debtors'discharged debts. The creditors did not respond and the debtors moved for default judgment.
Ruling: 
Creditors did not violate discharge injunction since they only reported the debtor's unpaid but discharged debts and did not act to collect the debts.
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United States Tr. v. Halishak (In re Halishak)

: The cause came before the court after a trial on separate complaints brought by plaintiff, the U.S. trustee, to deny the discharge of defendant debtor husband (Case No. 04- 3049) and wife (Case No. 04-3256). By way of separate petitions, each of the debtors had sought relief under chapter 7 of the Code.
Ruling: 
Debtors were denied discharge since the deficiencies in their petitions were strong indicators of fraud.
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Lover v. Rossman & Co. (In re Lover)

Plaintiff, a discharged bankruptcy debtor, brought an adversary proceeding against defendant creditor, alleging that a discharged debt to the creditor was still being reported to credit agencies, in violation of the discharge injunction provided by 11 U.S.C. § 524. The creditor moved for summary judgment, and the debtor did not respond to the motion.
Ruling: 
Debtor failed to show that a creditor had violated a discharge injunction by continuing to report a discharged debt to credit agencies.
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In re Burkett

In an adversary proceeding, plaintiff, a chapter 7 trustee, filed an objection to proofs of claim of defendant creditors, requesting disallowance under 11 U.S.C. § 502 primarily because of their failure to attach sufficient supporting documentation to the proofs of claim.
Ruling: 
Court overruled trustee's objection to creditors'lack of supporting documentation in their proofs of claim since they established the validity, ownership, and amount of the claim and there were no factual disputes on the claims.
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