- 11 U.S.C.
Barber v. Central Bank Illinois (In re Trappers Creek LLC)
Mar
05
2010
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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Court
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- 11 U.S.C.
In re Basfield
Jan
26
2010
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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Court
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- 11 U.S.C.
Vargas v. Educational Credit Mgmt. Corp. (In re Vargas)
Jan
12
2010
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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Court
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In re McCreary
Dec
29
2009
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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Court
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- 11 U.S.C.
In re Kucharz
Oct
28
2009
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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Court
:
- 11 U.S.C.
Watts v. Hood (In re Hood)
Oct
08
2009
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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Court
:
- 11 U.S.C.
In re Redpath
Sep
30
2009
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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Court
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In re Whipple
Sep
21
2009
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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Court
:
- 11 U.S.C.
In re Clemons
Jun
16
2009
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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Court
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Ambassadors Travel Servs. v. Liescheidt (In re Liescheidt)
Apr
22
2009
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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Court
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