In re Powell
Apr
01
2009
Ruling
Secured claim in luxury vehicle purchased within 910 days of petition date could not be bifurcated where alleged business use was less than 50 percent.
Procedural posture
After the debtor husband and wife filed a chapter 13 plan, an unsecured creditor challenged the plan on the grounds that it was filed in bad faith. A secured creditor objected to the plan on the ground that it violated the anti-bifurcation provision of 11 U.S.C.S. § 1325(a) (hanging paragraph referencing paragraph 5). The bankruptcy court held a trial on the objections.
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Court
:
- 11 U.S.C.
In re Smith
Mar
24
2009
Ruling
33 month deferral of plan payments was not evidence of bad faith.
Procedural posture
The chapter 13 trustee objected to the debtors' proposed chapter 13 plan.
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Court
:
- 11 U.S.C.
In re Englehaupt
Mar
11
2009
Ruling
Claim by debtor's sister who co-signed auto loan with debtor allowed.
Procedural posture
A debtor filed for relief under chapter 13 of the Bankruptcy Code. The debtor's sister-in-law, filed a claim against the debtor's estate because the debtor was a co-signor on a car loan obtained by the debtor for the purchase of a vehicle. The debtor objected to the sister-in-law's claim.
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Court
:
- 11 U.S.C.
Buckley v. National Bank (In re Buckley)
Feb
17
2009
Ruling
Debt owed due to debtor's conversion of motorcycle was nondischargeable.
Procedural posture
Plaintiff bank filed an action against defendant debtors to obtain an exception to discharge for an obligation allegedly owed by the debtors to the bank, pursuant to 11 U.S.C.S. § 523(a)(6). The court held a trial and issued findings of fact and conclusions of law.
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Court
:
In re Berwick Black Cattle Co.
Jan
15
2009
Ruling
Involuntary chapter 11 case dismissed where estate was insolvent and debtors were farmers whose objection precluded conversion to chapter 7.
Procedural posture
Involuntary chapter 11 cases were filed against debtors, who then moved to dismiss their cases pursuant to 11 U.S.C.S. § 1112(b). The United States Trustee (UST) moved to convert the cases to chapter 7. The creditors' committee also moved to convert or, in the alternative, for appointment of a chapter 11 trustee. The debtors contended that since they were farmers who opposed conversion to chapter 7, conversion was not an available alternative.
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Court
:
- 11 U.S.C.
In re Richardson
Jan
08
2009
Ruling
Clear commercial intent expressed in plain language of code allowed debtor to deduct payments secured by property intended for surrender.
Procedural posture
The chapter 13 Trustee filed an objection to confirmation of the debtors' proposed chapter 13 plan. The Trustee contended that the debtors, who had above-median income, were not permitted to deduct secured debt payments on property that was being surrendered. Thus, the Trustee contended that the plan failed the projected disposable income requirement of 11 U.S.C.S. § 1325(b)(1)(B).
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Court
:
- FRBP
In re Central Ill. Energy LLC
Dec
18
2008
Ruling
Repudiation by trustee necessitated denial of motion to approve settlement.
Procedural posture
Three joint movants, the chapter 7 trustee, the primary general contractor for the debtor's ethanol plan construction project, and the purchaser of substantially all of the debtor's assets, moved to approve a compromise pursuant to Bankruptcy Rule 9019. The proposed compromise was embodied in a contract entitled "Stipulation and Mutual Release of Claims". An objection to the motion for approval was filed by a company.
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Court
:
In re Central Ill. Energy LLC
Nov
25
2008
Ruling
Creditor allowed an administrative expense claim for insurance paid on water treatment facility leased to debtor.
Procedural posture
Debtor, a Delaware limited liability company, filed a petition under chapter 11 of the Bankruptcy Code in December 2007, and the court converted the case to one under chapter 7 in August 2008. A creditor filed a motion for allowance of an administrative expense claim, and the chapter 7 trustee filed an objection to the motion.
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Court
:
Barber v Herold (In re Herold)
Nov
10
2008
Ruling
Discharge denied due to efforts to defraud creditor and trustee.
Procedural posture
Defendant debtor filed for relief under chapter 7 of the Bankruptcy Code. Plaintiff trustee filed an amended complaint against the debtor, seeking denial of a discharge under 11 U.S.C.S. § 727(a)(2) and (6)(A).
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Court
:
- 11 U.S.C.
Jefferson v. Midwest Urological Group Ltd. (In re Jefferson)
Nov
07
2008
Ruling
Violation of discharge injunction did not merit punitive damages absent evidence of financial loss.
Procedural posture
After receiving a discharge, plaintiff chapter 7 debtor sued defendant medical services provider, alleging that the provider violated the automatic stay and the discharge injunction by continuing to attempt to collect a debt, and seeking compensatory damages, attorney fees, and punitive damages. The provider failed to appear or file a responsive pleading. The debtor moved for a default judgment.
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Court
: