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In re Ferguson

Ruling
Creditor entitled to marshalling after conversion of chapter 12 case to chapter 7.
Issue(s)
Was creditor entitled to marshalling following conversion of chapter 12 case to chapter 7 and §363 sale of assets.

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Consumer opinion summary, case decided on August 20, 2013 , LexisNexis #0913-058

Cox v. Grube (In re Grube)

Ruling
Motion to dismiss trustee's complaint in fraudulent transfer proceeding denied.
Procedural posture

Transferee moved to dismiss the second amended complaint by chapter 7 trustee to recover what he alleged to have been constructively fraudulent transfers. Issues included whether the complaint, which cited 11 U.S.C.S. § 548, 11 U.S.C.S. § 550 and state fraudulent transfer statutes, was properly dismissed for failure to state a claim or for failure to comply with Fed. R. Civ. P. 8, Fed. R. Civ. P. 9(b) and Fed. R. Civ. P. 15.

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Consumer opinion summary, case decided on January 29, 2013 , LexisNexis #0213-088

In re Ferguson

Ruling
Confirmation denied due to proposal to use estate assets to pay postpetition tax liability.
Procedural posture

The debtors sought confirmation of a first amended chapter 12 plan of reorganization. Objections to confirmation were filed by certain creditors. The standing chapter 12 trustee asserted a verbal objection and filed a brief in opposition to confirmation.

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Consumer opinion summary, case decided on January 02, 2013 , LexisNexis #0113-095

Turnbow v. Blundy (In re Blundy)

Ruling
Transfer by debtor to father of amount equivalent to joint loan from creditor in order to purchase building was not grounds for denial of discharge.
Procedural posture

Plaintiff-cross defendant creditor filed a complaint seeking a determination that his debt for funds loaned be excepted from discharge under 11 U.S.C.S. § 523(a)(2)(A), , alternatively, that the debtor be denied a discharge under 11 U.S.C.S. § 727(a)(2)(A) and (a)(4)(A). The debtor also filed a complaint against the creditor alleging various violations of the automatic stay under 11 U.S.C.S. § 362(a)(6) and (k).

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Consumer opinion summary, case decided on September 28, 2012 , LexisNexis #1212-059

In re Rowand

Ruling
Debtor's beneficiary interest in spendthrift trust was not property of the estate.
Procedural posture

Chapter 7 trustee moved for an order designating him as beneficiary of two spendthrift family trusts in place of the debtor. The issue was whether debtor's interest as a beneficiary under the trusts created by her parents constituted property of her bankruptcy estate.

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Consumer opinion summary, case decided on July 30, 2012 , LexisNexis #0812-084

Johnson v. Johnson (In re Johnson)

Ruling
Marital settlement agreement created debt that was nondischargeable.
Procedural posture

A chapter 7 debtor's ex-wife and the ex-wife's attorney filed an adversary proceeding against debtor, seeking a determination that a debt the debtor owed to the attorney was nondischargeable under 11 U.S.C.S. § 523(a)(5) because it was a "domestic support obligation" as that term was defined by 11 U.S.C.S. § 101(14A). Plaintiffs filed a motion for summary judgment.

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Consumer opinion summary, case decided on July 10, 2012 , LexisNexis #0812-020

Burdick v. Bryant (In re Bryant)

Ruling
Conversion of classic car resulted in nondischargeable debt.
Procedural posture

Plaintiff, the owner of a 1931 Model A Ford, filed a complaint against chapter 7 debtor, seeking a determination that the debt arising from his agreement with the debtor to restore his vehicle was nondischargeable under 11 U.S.C.S. § 523(a)(2)(A), (a)(4) and (a)(6).

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Consumer opinion summary, case decided on June 12, 2012 , LexisNexis #0712-021

In re Harris

Ruling
Debtors could cure arrearage in real estate taxes through chapter 13 plan.
Procedural posture

Chapter 13 debtors objected to a proof of claim filed by a mortgagee, which included an arrearage that arose from the mortgagee's prepetition payment of delinquent real estate taxes.

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Consumer opinion summary, case decided on April 23, 2012 , LexisNexis #0512-063

In re FasTech Servs.

Ruling
Postpetition, preconversion interest on union funds' claims for unpaid contributions were entitled to priority status, although claim for damages was not.
Procedural posture

Debtor corporation declared chapter 11 bankruptcy and operated its business as a debtor-in-possession from April 2010 until June 2011, when its case was converted to one under chapter 7 of the Bankruptcy Code. A union pension fund and a union welfare fund filed claims against the debtor's bankruptcy estate and sought a determination that their claims were entitled to priority status under 11 U.S.C.S. §§ 507(a)(2) and 503(b)(1)(A).

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Commercial opinion summary, case decided on April 09, 2012 , LexisNexis #0512-008

Krieger v. Educational Credit Mgmt Corp. (In re Krieger)

Ruling
Student loan debt discharged where debtor had made good faith effort to repay and had no reasonable likelihood of gainful employment.
Procedural posture

Chapter 7 debtor filed a pro se complaint against defendant student loan creditor, seeking to discharge her student loan obligations pursuant to 11 U.S.C.S. § 523(a)(8)(B).

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Consumer opinion summary, case decided on April 05, 2012 , LexisNexis #0512-054