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Higgins v. Harn (In re Harn)

Ruling
New liability created by divorce decree settlement was nondischargeable.
Procedural posture

Plaintiff, defendant debtor's former spouse, filed an adversary proceeding seeking a determination that the debtor's obligations to indemnify and hold him harmless from liability for certain debts were nondischargeable pursuant to 11 U.S.C. § 523(a)(15). The former spouse moved for judgment on the pleadings.

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Consumer opinion summary, case decided on January 10, 2008 , LexisNexis #0308008

Covey v. Hackett (In re Roadrunner Delivery Inc.)

Ruling
Prepetition claim discharged in shareholder's bankruptcy could not be subject of avoidance proceeding in bankruptcy of the corporation.
Procedural posture

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant, a corporate debtor's sole shareholder, claiming that $6,753.95 in payments the debtor made to the shareholder were fraudulent and should be avoided under 11 U.S.C. § 548(a)(1)(B). The shareholder filed a motion to dismiss the trustee's complaint.

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Commercial opinion summary, case decided on December 19, 2007 , LexisNexis #0108-076

Daily v. Chase Bank USA (In re Daily)

Ruling
Punitive damages for violation of stay not warranted due to mitigating response of creditor.
Procedural posture

Plaintiff debtor filed an adversary proceeding against defendant creditor for willful violation of the automatic stay for filing a complaint against the debtor in state court. The creditor failed to respond. The matter was before the court for entry of a default judgment and determination of damages.

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Consumer opinion summary, case decided on December 18, 2007 , LexisNexis #0208-002

Nelson Keys & Keys P.C. v. Hudson (In re Hudson)

Ruling
Attorneys' fees awarded to debtor's former spouse in custody proceeding were nondischargeable.
Procedural posture

Plaintiff creditor, the law firm that represented defendant debtor's former spouse in a paternity/support proceeding, filed an adversary proceeding seeking a determination that its debt was nondischargeable. The issue was whether attorney fees incurred in the law firm's representation of the former spouse and which the debtor was ordered to pay were nondischargeable under 11 U.S.C. § 523(a)(5). The law firm moved for summary judgment.

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Consumer opinion summary, case decided on November 27, 2007 , LexisNexis #0108-008

In re Brown

Ruling
Plan could not simultaneously seek to cure default and modify secured claim in motor vehicle.
Procedural posture

The debtor moved for confirmation of her proposed chapter 13 plan. The creditor which held a security interest in the debtor's vehicle filed an objection as well as a motion for relief from the automatic stay or for adequate protection. The creditor contended that the debtor improperly bifurcated its secured claim in contravention of the unnumbered, hanging paragraph following 11 U.S.C. § 1325(a)(9).

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Consumer opinion summary, case decided on November 09, 2007 , LexisNexis #1207-061

In re Cole

Ruling
Security interests in computer and other personal property were nonpossessory, non-purchase money and avoidable.
Procedural posture

The debtor moved to avoid creditor's lien under 11 U.S.C. § 522(f)(1)(B).

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Consumer opinion summary, case decided on November 06, 2007 , LexisNexis #1207-045

In re Lilly

Ruling
Chapter 13 debtor not entitled to discharge could confirm plan paying Till rate of interest on "910" claim.
Procedural posture

Claimant creditor objected to confirmation of debtor's Amended Chapter 13 Plan. At issue was whether the lien retention provision added by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA") to 11 U.S.C. § 1325(a)(5)(B)(i) prevented a chapter 13 debtor who was not entitled to a discharge from modifying the interest rate on a secured claim and, if permitted, the post-bankruptcy effect of such modification.

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Consumer opinion summary, case decided on October 30, 2007 , LexisNexis #1207-060

In re Erwin

Ruling
Equal payment provision not directed at payments by trustee to secured creditors.
Procedural posture

The debtors moved for confirmation of their amended chapter 13 plan. A secured creditor objected on the basis that the plan failed to provide for its secured claim to be paid in equal monthly payments. The issue was whether the trustee could continue to pay debtors'attorney fees on an accelerated basis despite the resulting increase in secured creditor payments once the attorney was fully paid.

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Consumer opinion summary, case decided on October 01, 2007 , LexisNexis #1107-016

In re Moreland

Ruling
Debtor's attorney allowed additional fee for services performed in relation to audit.
Procedural posture

An attorney for chapter 13 debtors filed an application for compensation, seeking an additional $840 in attorney fees, plus costs, for work performed related to an audit of the debtors'financial records. The U.S. Trustee opposed the allowance of costs. The trustee did not oppose an award of reasonable fees related to the audit but took no position as to the reasonableness of the fees requested.

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opinion summary, case decided on June 22, 2007 , LexisNexis #0707-107

In re Marshall

Ruling
Till rate of interest, not contract rate, applied to claim secured by motor vehicle purchased just prior to petition date.
Procedural posture

Creditor filed an objection to debtors'proposed chapter 13 plan. In support of its objection, the creditor contended that it was bad faith, per se, for the debtors to have purchase a vehicle 40 days before bankruptcy, fail to make any prepetition payments, and seek to reduce the contract rate of interest in a chapter 13 plan.

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opinion summary, case decided on June 11, 2007 , LexisNexis #0707-086