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Barber v. Central Bank Illinois (In re Trappers Creek LLC)

Ruling
Transfer avoided as preferential where creditor was not fully secured and could not overcome presumption that debtor was insolvent at time it was made.
Procedural posture

Chapter 7 trustee filed a complaint against defendant creditor seeking to avoid a payment to the creditor by the debtor as a preference pursuant to 11 U.S.C.S. § 547. By way of defense, the creditor alleged alternatively that it was a secured creditor, that the payment was made in the ordinary course of business, and that it was outside the 90-day preference period. The trustee moved for summary judgment.

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Commercial opinion summary, case decided on March 05, 2010 , LexisNexis #0510-097

In re Basfield

Ruling
Relief from stay to foreclose denied where mortgagee offered no supporting evidence and misstated facts.
Procedural posture

Creditor bank filed a motion for relief from the automatic stay under 11 U.S.C.S. § 362. The bank held the mortgage on residential real estate owned by the debtors.

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Consumer opinion summary, case decided on January 26, 2010 , LexisNexis #0310-066

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

Ruling
Student loan debt could be discharged where debtor attended college late in life, never worked in chosen field and limited ability to pay.
Procedural posture

Plaintiff chapter 7 debtor filed a complaint against defendant creditor to determine the dischargeability of a student loan under 11 U.S.C.S. § 523(a)(8).

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Consumer opinion summary, case decided on January 12, 2010 , LexisNexis #0210-086

In re McCreary

Ruling
Chapter 13 case was not filed in bad faith despite fact that debt to former spouse would have been nondischargeable in chapter 7.
Procedural posture

Debtor filed a petition under chapter 13 and a plan to repaying his creditors. The debtor's ex-wife asked the court to dismiss the debtor's case, claiming that the debtor acted in bad faith, in violation of 11 U.S.C.S. § 1325(a)(7), when he declared chapter 13 bankruptcy, and that his plan could not be confirmed under § 1325(a)(3) because it was proposed in bad faith. The ex-wife's objections were tried to the court.

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Consumer opinion summary, case decided on December 29, 2009 , LexisNexis #0210-030

In re Kucharz

Ruling
Unemployment compensation received in six months prior to petition date should be treated as regular monthly income.
Procedural posture

The chapter 7 debtor disclosed that he had received unemployment compensation totaling $ 1,230 during the six-month period preceding the bankruptcy filing, but claims it as a benefit under the Social Security Act (SSA) that need not need to be included in the calculation of his current monthly income (CMI) on Official Bankr. Form. 22C. The chapter 13 trustee filed an objection, asserting the compensation must be listed as CMI.

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Consumer opinion summary, case decided on October 28, 2009 , LexisNexis #1209-001

Watts v. Hood (In re Hood)

Ruling
Payments by potential purchaser to debtor who did not use them to pay mortgage as represented in contract were nondischargeable.
Procedural posture

Plaintiff creditor, the purchaser under a contract to deed, sought a determination of nondischargeability under 11 U.S.C.S. § 523(a)(2)(A) with respect to the debt arising out of the contract, alleging that the defendant debtor falsely represented that she was making the underlying mortgage payments on the subject real property, and the payments were current during the term of the contract for deed. The property was foreclosed upon.

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Consumer opinion summary, case decided on October 08, 2009 , LexisNexis #1109-048

In re Redpath

Ruling
Debtor could redeem vehicle for retail value, but less than value set by creditor's expert which was greater than purchase price.
Procedural posture

Bankruptcy debtors moved to redeem a motor vehicle under 11 U.S.C.S. § 722 by paying an amount to a creditor secured by the lien, but the creditor objected to the amount and asserted that the value of the vehicle was higher.

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Consumer opinion summary, case decided on September 30, 2009 , LexisNexis #1109-056

In re Whipple

Ruling
Claim including negative equity secured by "910 vehicle" could not be bifurcated.
Procedural posture

Debtors filed a plan that proposed to strip down the claim of the creditor that was secured by a motor vehicle. The creditor objected to confirmation, arguing that its purchase money security interest claim, held for less than 910 days, was exempt from strip-down by operation of the hanging paragraph of 11 U.S.C.S. § 1325(a), so that the amount of its secured claim was the petition date balance rather than the fair market value.

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Consumer opinion summary, case decided on September 21, 2009 , LexisNexis #1009-098

In re Clemons

Ruling
Debtor entitled to marital adjustment for mortgage-related expenses in current monthly income calculation.
Procedural posture

The matter before the court was the confirmation of the Amended chapter 13 Plan filed by debtor and the objection by the chapter 13 Trustee. The issue concerned whether a marital adjustment could be claimed for mortgage related expenses for which debtor was not contractually liable.

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Consumer opinion summary, case decided on June 16, 2009 , LexisNexis #0809-134

Ambassadors Travel Servs. v. Liescheidt (In re Liescheidt)

Ruling
Dischargeability proceeding was not ripe for determination where debtor sought a full compliance discharge.
Procedural posture

Plaintiff former employer filed an adversary complaint against defendant chapter 13 debtor, alleging that during the course of her employment she had embezzled a large sum of money and seeking a determination that its claims were nondischargeable under 11 U.S.C.S. § 523(a)(2), (a)(4), and (a)(6). The debtor moved to dismiss the complaint on the grounds that it was filed too late.

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Consumer opinion summary, case decided on April 22, 2009 , LexisNexis #0609-008