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In re SVI Media Inc.

Ruling
Debtor's attorney whose fees exceeded prepetition retainer was a creditor and could not be retained by the trustee.
Procedural posture

A law firm, chapter 7 debtors'counsel, filed an application for an award of attorney fees and costs, to be paid out of prepetition retainers. The Chapter 7 trustee filed an application to retain an attorney from the firm to represent the trustee pursuant to 11 U.S.C.S. § 327.

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Commercial opinion summary, case decided on October 31, 2008 , LexisNexis #0209-106

In re Berwick Black Cattle Co.

Ruling
Plan confirmation denied despite lack of objection due to inappropriate blanket third-party releases.
Procedural posture

Bankruptcy debtors proposed a chapter 11 reorganization plan which provided for releases of claims by third parties against, among others, the primary creditors of the debtors which were financing the debtors' reorganization. The debtors sought confirmation of the plan, and no party in interest objected to the releases.

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Commercial opinion summary, case decided on September 23, 2008 , LexisNexis #1208-028

In re Central Ill. Energy LLC

Ruling
Contracts not terminated by petition date were executory and could be assumed and assigned.
Procedural posture

The assignee of two alleged executory contracts with a chapter 11 debtor objected to the proposed assumption and assignment, pursuant to 11 U.S.C.S. § 365, of the contracts by the debtor.

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Commercial opinion summary, case decided on August 11, 2008 , LexisNexis #1108-114

In re Zapata

Ruling
Lien avoided to the extent it impaired debtor's homestead exemption but not avoided as to interest of nondebtor spouse.
Procedural posture

A debtor filed a motion to avoid a creditor's judgment lien. The debtor filed his chapter 13 petition after judgment was entered in favor of the creditor and did not address the judgment lien in the Chapter 13 Plan.

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Consumer opinion summary, case decided on June 26, 2008 , LexisNexis #1108-076

In re Smith

Ruling
401(k) plan loans were not secured debts for which repayment was required or special circumstances.
Procedural posture

The U.S. Trustee filed a motion to dismiss debtors' chapter 7 case pursuant to 11 U.S.C.S. §§ 707(b)(1) and (b)(2), asserting that one debtor's loans from his retirement savings plan were not secured debts or a special circumstance so as to defeat the presumption of abuse that otherwise arose.

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Consumer opinion summary, case decided on June 20, 2008 , LexisNexis #0708-123

Geiger v. IRS (In re Geiger)

Ruling
Debtor's IRS liability was dischargeable although debtor spouse's liability was nondischargeable due to willful avoidance attempts.
Procedural posture

Debtors, a married couple, filed a complaint against defendant IRS for a determination that the husband's tax liabilities for 1993, 1995, 1997, and 1998 and the couple's joint obligations for 2000 and 2001 were properly discharged. The IRS opposed the claim on the ground that debtor husband had willfully attempted to defeat or evade payment of taxes within the meaning of 11 U.S.C.S. § 523(a)(1)(C) but offered no evidence as to the wife.

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Consumer opinion summary, case decided on April 28, 2008 , LexisNexis #0608-007

Gamble v. Vanderbilt Univ. (In re Gamble)

Ruling
Student account guarantor agreement with university was not a nondischargeable student loan.
Procedural posture

Plaintiff debtor sought a determination that her debt to defendant university did not constitute a nondischargeable debt under 11 U.S.C.S. § 523(a)(8). Both parties sought summary judgment.

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Consumer opinion summary, case decided on March 27, 2008 , LexisNexis #0408-083

In re White

Ruling
Debtors could claim deduction for vehicle owned free and clear.
Procedural posture

The debtors filed for relief under chapter 13 of the United States Bankruptcy Code and submitted a proposed chapter 13 plan. A standing chapter 13 trustee objected to the plan, claiming that the debtors' claimed deduction for a car that the owned free and clear was not allowed under 11 U.S.C.S. § 707 and the plan failed to meet the minimum threshold standard set forth in 11 U.S.C.S. § 1325.

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Consumer opinion summary, case decided on February 28, 2008 , LexisNexis #0308-124

In re Sharpe

Ruling
Extension of stay in debtor's third case in eighteen months denied due to failure to rebut presumption of bad faith.
Procedural posture

A debtor filed his third chapter 13 petition in 18 months. Pursuant to 11 U.S.C.S. § 362(c)(3), because of the pendency of the debtor's second case within one year of the third case, the automatic stay terminated on the 30th day following the third filing. The debtor filed a motion to extend the automatic stay, and the creditor opposed the motion and moved to modify the stay to continue its foreclosure action.

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Consumer opinion summary, case decided on February 27, 2008 , LexisNexis #0308-111

In re Frank

Ruling
Debtor's attorneys ordered to disgorge fees due to failure to list county treasurer on matirx or take action to prevent tax sale.
Procedural posture

Chapter 13 debtors sought disgorgement of the $ 2,000 in attorney fees paid to the law firm they hired to represent them in their bankruptcy.

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Consumer opinion summary, case decided on February 05, 2008 , LexisNexis #0308-096