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southern district of illinois

Barker v. Educational Credit Mgmt. Corp.

Ruling
Bankruptcy court properly refused to discharge student loan debt where debtor's hardship was temporary and not insurmountable.
Procedural posture

Appellant debtor sought review of an order of the Bankruptcy Court for the Southern District of Illinois, which denied his claim for a discharge of his government-guaranteed educational loan debt to appellee creditor under 11 U.S.C.S. § 523(a)(8)(B).

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Consumer opinion summary, case decided on March 18, 2008 , LexisNexis #0408-031

In re Franco

Ruling
Trustee's objection to confirmation overruled via application of good faith standards.
Procedural posture

A chapter 13 trustee filed an objection to confirmation of a plan, contending that the debtors should have been compelled to surrender one of three encumbered vehicles on the ground that it was not reasonable or necessary for them to retain a third vehicle.

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Consumer opinion summary, case decided on February 12, 2008 , LexisNexis #0308-093

In re Myers

Ruling
Debtors bound by mortgage arrearage included in confirmed plan where reservation of rights to object to claims was overbroad.
Procedural posture

A chapter 13 debtor filed an objection to the proof of claim filed by a creditor. The creditor filed a motion to strike the debtor's request for production of documents and for an accounting.

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Consumer opinion summary, case decided on February 06, 2008 , LexisNexis #0308-095

Whitener v. United States (In re Whitener)

Ruling
Debtor who failed to qualify for discharge of student loan debt given two year recovery window with set monthly payments.
Procedural posture

Plaintiff debtor sought a determination under 11 U.S.C. § 523(a)(8) that his student loan was dischargeable in his chapter 7 bankruptcy case.

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Consumer opinion summary, case decided on January 24, 2008 , LexisNexis #0208-079

In re Herbord

Ruling
"Old car" expense set forth in IRS manual was not deductible from disposable income calculation.
Procedural posture

Bankruptcy debtors who were above-median income debtors calculated their disposable income by deducting vehicle operation and ownership expenses, and also "old car" operating expenses for vehicles over six years old. The bankruptcy trustee asserted that the "old car" expenses were not deductible and objected to confirmation of the debtors' plans on the ground that not all disposable income was applied to pay creditors.

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Consumer opinion summary, case decided on January 14, 2008 , LexisNexis #0308014

In re Trombetta

Ruling
Plan could be modified post-lien avoidance to allow benefit to priority unsecured creditors.
Procedural posture

Following the avoidance of a lien on the debtor's motor vehicle, the debtor proposed a modification to the plan. The chapter 13 trustee objected to the plan modification, asserting that the value received from avoidance must be directed to the exclusive benefit of the general unsecured creditors. The debtor countered that the priority unsecured claims must be paid in full before the general unsecured creditors.

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Consumer opinion summary, case decided on January 04, 2008 , LexisNexis #0208-103

In re Perkins

Ruling
Amendment of deceased debtor's plan and subsequent discharged approved over objection of trustee.
Procedural posture

A chapter 13 trustee filed a motion pursuant to Fed. R. Bankr. P. 1016 to dismiss the chapter 13 debtor's case due to the debtor being deceased, and the trustee objected to the amended plan filed on behalf of the deceased debtor.

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Consumer opinion summary, case decided on November 21, 2007 , LexisNexis #0108-035

In re Sallee

Ruling
Above median debtors not required to surrender two of four vechicles where plan was proposed in good faith as "reasonably necessary" inquiry does nto apply under BAPCPA.
Procedural posture

The chapter 13 trustee filed an objection to confirmation of the debtors'proposed plan. The trustee argued that the good faith standards set forth in 11 U.S.C. § 1325(a)(3) and (7) required the debtors to surrender two of their four vehicles. In the alternative, the trustee argued that the payments on the extra vehicles were not reasonable and necessary expenses.

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Consumer opinion summary, case decided on November 15, 2007 , LexisNexis #0108-126

In re Foehrkalb

Ruling
Debtors'maintenance of three cars necessary to household did not violate best interests of creditors test.
Procedural posture

The chapter 13 trustee filed an objection to the debtors' proposed plan stating that the plan did not meet the "best interests" test of 11 U.S.C. § 1325(a)(4). The main focus of the trustee's objection was the debtors'proposed retention of a vehicle.

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Consumer opinion summary, case decided on November 13, 2007 , LexisNexis #1207-090

Centrue Bank v. Diekemper (In re Diekemper)

Ruling
Discharge denied due to debtors'actions to hinder, delay or defraud creditor.
Procedural posture

A creditor filed an adversary proceeding objecting to debtors'discharge under provisions of 11 U.S.C. § 727(a).

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Consumer opinion summary, case decided on October 26, 2007 , LexisNexis #1107-135