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southern district of illinois

In re Cochonor

Ruling
Motion to dismiss for debtor's failure to respond to examination questions denied as highly prejudicial to debtor and not supported by trustee.
Procedural posture

An attorney named as a witness moved to quash the subpoena pursuant to Fed. R. Civ. P. 45(c)(3)(A)(ii) and 45(c)(3)(B)(iii). Some creditors filed a motion to dismiss the debtor's case, based upon the debtor's refusal to respond to their questions in his Fed. R. Bankr. P. 2004 examinations and before the court, which was due to his exercise of the U.S. Const. amend. V right to remain silent.

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Consumer opinion summary, case decided on March 29, 2010 , LexisNexis #0610-056

Eggmann v. Millwork Prods. LLC (In re Landreth Lumber Co.)

Ruling
Avoidance of alleged preferential transfers denied pursuant to ordinary course of business exception.
Procedural posture

Trustee filed a complaint against defendant creditor to avoid and recover preferential transfers. The parties stipulated that the undisputed facts established the trustee's prima facie case under 11 U.S.C.S. § 547(b). The creditor sought to prove that the transfers fell within the exception of § 547(c)(2).

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Commercial opinion summary, case decided on March 04, 2010 , LexisNexis #0510-021

Eggman v. Parker-Hannifin Corp. (In re PJM Enters. of Marion)

Ruling
Postpetition payment of prepetition debt that was authorized by court prior to conversion from chapter 11 to chapter 7 was not avoidable.
Procedural posture

Chapter 7 trustee filed an adversary proceeding against defendant creditor, seeking a determination that a transfer a corporate debtor made to the creditor postpetition was avoidable under 11 U.S.C.S. § 549, an order under 11 U.S.C.S. § 550 which required the creditor to repay the amount it received. The parties filed cross-motions for summary judgment.

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Commercial opinion summary, case decided on January 12, 2010 , LexisNexis #0210-017

In re Gravermann

Ruling
Amendment of schedules to claim exemption in personal injury case proceeds more than three years after petition date denied.
Procedural posture

The chapter 7 debtors filed an amended Schedule C claiming an exemption in the proceeds of a lawsuit settlement under 735 ILCS 5/12-1001(h)(4) as a payment on account of personal bodily injury. The trustee objected.

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Consumer opinion summary, case decided on December 10, 2009 , LexisNexis #0110-137

In re Trupp

Ruling
Objection to confirmation of debtor's plan sustained on behalf of former spouse but overruled with regard to state support agency.
Procedural posture

A bankruptcy debtor's chapter 13 plan not provide for full payment of pre- petition child support arrearages owed to both the debtor's former spouse and to a state agency. The state objected to confirmation of the debtor's plan on the ground that 11 U.S.C.S. § 1322(a)(2) required the debtor to pay both the obligation owed to the agency and the obligation owed to the spouse in full.

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Consumer opinion summary, case decided on December 08, 2009 , LexisNexis #0110-064

Schaefer v. First National Bank

Ruling
Constructively fraudulent mortgage avoided.
Procedural posture

Plaintiff chapter 11 debtors filed an adversary proceeding against defendants, a bank and a committee of unsecured creditors, seeking a judgment determining the validity and priority of liens against real property they owned. The committee filed a crossclaim against the bank, seeking to avoid a mortgage under 11 U.S.C.S. § 548(a)(1)(B), which the debtors gave the bank.

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Consumer opinion summary, case decided on October 15, 2009 , LexisNexis #1109-055

In re Troutt

Ruling
"Secured claim" for fixture that was not a "consumer good" under the UCC allowed as unsecured.
Procedural posture

Debtors filed a petition under chapter 13 and a plan for repaying their creditors. A creditor filed a secured claim against the debtors' bankruptcy estate and objected to confirmation of the debtors' plan because the debtors' plan treated the creditor's claim as an unsecured claim. The creditor's objection was tried to the court.

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Consumer opinion summary, case decided on September 04, 2009 , LexisNexis #1009-076

In re Whitwell

Ruling
Confirmation denied where debtor proposed to fund plan with personal injury settlement payments and debtor had sold right to receive the payments to creditor annuity company.
Procedural posture

A chapter 13 debtor sought confirmation of an amended plan that was funded in part by payments received from a structured personal injury settlement. A creditor objected to confirmation, arguing that the debtor had sold it the right to receive 180 of those structured settlement payments, and, therefore, the debtor proposed to use money he did not own to fund the plan.

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Consumer opinion summary, case decided on July 30, 2009 , LexisNexis #0909-058

Taylor v. Taylor (In re Taylor)

Ruling
Discharge denied due to debtor's material misrepresentations and omissions in schedules.
Procedural posture

In a chapter 7 bankruptcy proceeding, plaintiff creditor sought to have a $ 60,000 debt determined non-dischargeable under the provisions of 11 U.S.C.S. § 523, , in the alternative, to have the debtor's discharge denied pursuant to the provisions of 11 U.S.C.S. § 727. The court's initial action should be to determine whether the debtor was entitled to a discharge pursuant to 11 U.S.C.S. § 727(a)(4)(A).

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Consumer opinion summary, case decided on July 03, 2009 , LexisNexis #0809-017

In re Webb

Ruling
Debtor awarded damages and attorneys' fees for creditor's repeated postpetition collection efforts in violation of stay.
Procedural posture

A debtor filed an amended motion for sanctions for a willful violation of the automatic stay against a creditor, pursuant to 11 U.S.C.S. § 362. The court held a hearing and issued findings of fact and conclusions of law.

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Consumer opinion summary, case decided on May 27, 2009 , LexisNexis #0709-041