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In re T.A. Brinkoetter & Sons Inc.

Ruling
Interest, but not penalties, on late payments under collective bargaining agreement was nondischargeable.
Procedural posture

When a chapter 11 debtor in possession (DIP) failed to timely pay postpetition fringe benefits under a collective bargaining agreement (CBA) that it did not reject under 11 U.S.C. § 1113, movants, the pension and welfare funds to which the payments were owed, asked the court to grant administrative expense status to those debts. The court treated the matter as a motion under Fed. R. Bankr. P. 9013 and 9014.

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Commercial opinion summary, case decided on March 28, 2012 , LexisNexis #0512-096

Shinn v. IRS (In re Shinn)

Ruling
Taxes for years in which debtor did not file returns until after IRS assessed deficiencies were nondischargeable.
Procedural posture

Plaintiff debtor filed a complaint against defendant Internal Revenue Service (IRS), seeking a determination that his federal income tax liability for the tax years 1998 through 2006 was dischargeable pursuant to 11 U.S.C.S. § 523(a)(1). The IRS conceded dischargeability as to all tax years except 2001 and 2002. The IRS filed a motion for summary judgment.

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Consumer opinion summary, case decided on March 22, 2012 , LexisNexis #0412-115

Posnanski v. Kosth (In re Kosth)

Ruling
Discharge denied due to false statement regarding payments to insiders within year prior to petition date.
Procedural posture

Plaintiff creditor filed a complaint objecting to both the dischargeability of defendant debtor's debt under 11 U.S.C.S. § 523, the debtor's discharge under 11 U.S.C.S. § 727.

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Consumer opinion summary, case decided on March 13, 2012 , LexisNexis #0412-128

In re Martin

Ruling
Confirmation of above median debtor's plan with three-year term denied due to failure to meet applicable commitment period.
Procedural posture

The chapter 13 debtor sought confirmation of an amended plan. An objection was filed.

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Consumer opinion summary, case decided on January 24, 2012 , LexisNexis #0212-137

In re Scharp

Ruling
Relief from stay granted to allow creditor franchisee to continue eviction action.
Procedural posture

Creditor, a franchisor, sought relief from stay per 11 U.S.C.S. § 362 to continue its prosecution of an eviction action to oust debtor franchisee from a property on which movant's facility was located. Debtor opposed relief on the ground that the contractual arrangement between the parties was not a "true lease" and could not be assumed under 11 U.S.C.S. § 365, thereby foreclosing relief from stay.

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Consumer opinion summary, case decided on November 28, 2011 , LexisNexis #0112-007

Barber v. Grube (In re Grube)

Ruling
Transfer of funds to non-debtor spouse to be held as earmarked for undetermined joint tax liability was avoidable as fraudulent.
Procedural posture

A debtor's chapter 7 bankruptcy trustee sued defendant, the debtor's wife, to avoid five prepetition transfers as fraudulent transfers under 11 U.S.C.S. § 548(a)(1)(B). The trustee moved for summary judgment.

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Consumer opinion summary, case decided on October 06, 2011 , LexisNexis #1111-053

In re Riekena

Ruling
Joint debtor who filed petition one day after dismissal of prior chapter 13 case was not an eligible debtor.
Procedural posture

Movant, the chapter 13 trustee, moved to dismiss one of the debtors, the wife, from the case due to her alleged ineligibility under 11 U.S.C.S. § 109(g)(2), based upon her prior filing, and the dismissal on her motion of, a prior individual chapter 13 case.

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Consumer opinion summary, case decided on September 15, 2011 , LexisNexis #1011-106

State Bank of Indus. V. Moffett (In re Moffett)

Ruling
Loan debt was dischargeable where bank president's reliance on belief that debtor owed mother's business was not justifiable.
Procedural posture

Creditor bank filed an adversary complaint against chapter 13 debtor, to determine the dischargeability, pursuant to 11 U.S.C.S. § 523(a)(2)(A) and (a)(2)(B), of partially secured debt owed to the bank based on informal, long-term renewal loans.

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Consumer opinion summary, case decided on July 25, 2011 , LexisNexis #0811-084

Kreps v. Illinois Dept of Healthcare (In Kreps)

Ruling
Res judicata did not bar claim for postpetition interest on priority claim for back child support.
Procedural posture

Plaintiffs, Chapter 13 debtors, filed an adversary complaint against defendant Illinois Department of Healthcare and Family Services (DHFS) alleging that the res judicata effect of their confirmed plan under 11 U.S.C.S. § 1327(a) barred the DHFS's claim for postpetition interest that accrued on the priority claim for back child support.

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Consumer opinion summary, case decided on July 13, 2011 , LexisNexis #0811-070

Rafool v. Fifth Day Peoria LLC (In re Westbay)

Ruling
Payment of proceeds of sale of debtor's member interest in LLC to creditor with security interest on the member interest was not a fraudulent transfer.
Procedural posture

Chapter 7 trustee sued defendant, a limited liability company (LLC), to avoid and recover a $50,000 transfer either as a preference or a fraudulent conveyance. Before the court was the LLC's amended motion for summary judgment.

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Consumer opinion summary, case decided on July 11, 2011 , LexisNexis #0811-025