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District of indiana

In re Myers

Ruling
Inclusion of negative equity did not destroy purchase money character of "910 vehicle" loan.
Procedural posture

Debtor filed a chapter 13 case within 910 days of the date on which she had bought a new car using dealer financing. The loan and the resulting security interest were assigned to the creditor, which filed a $25,101 proof of claim. When debtor proposed a plan that provided a $15,000 secured claim and crammed down the balance, the creditor objected on the basis that such treatment was improper under 11 U.S.C.S. § 1325(a) and 11 U.S.C.S. § 506.

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Consumer opinion summary, case decided on June 13, 2008 , LexisNexis #0908-056

DaimlerChrysler Fin. Servs. Ams. LLC v. Rivera (In re Rivera)

Ruling
Confirmation reversed where payments to creditor were left to trustee's discretion and not in specified equal monthly amounts.
Procedural posture

Appellant, a secured creditor in the underlying bankruptcy proceedings, challenged the U.S. Bankruptcy Court for the Northern District of Indiana's confirmation of appellee debtors' chapter 13 plan.

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Consumer opinion summary, case decided on May 02, 2008 , LexisNexis #0608-023

Dunlap v. K.L. Properties LLC (In re Wasp Precision Mach. Inc.)

Ruling
Transfer of proceeds of auction of debtor's equipment machinery from original seller of assets to LLC to pay back rent was avoidable.
Procedural posture

Plaintiff, a chapter 7 trustee, filed an action against defendant, a limited liability company (LLC), for the return of funds paid to the LLC, pursuant to 11 U.S.C.S. § 547(b). The court issued findings of fact and conclusions of law.

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Commercial opinion summary, case decided on May 01, 2008 , LexisNexis #0608-080

Gresk v. Adams Removal & Hauling Inc. (In re American Restoration Corp.)

Ruling
Letter outlining "net 30 days" invoicing treatment did not support ordinary course of business defense to avoidance where invoices clearly stated "due on receipt."
Procedural posture

Chapter 7 Trustee filed an adversary proceeding against defendant creditor seeking to avoid certain transfers from the debtor as preferential under 11 U.S.C.S. § 547(b). The only issue was whether the transfers were excepted from avoidance pursuant to the "ordinary course" defense under 11 U.S.C.S. § 547(c)(2) and in particular, whether the transfers were made "according to ordinary business terms" within the meaning of § 547(c)(2)(C).

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Commercial opinion summary, case decided on April 28, 2008 , LexisNexis #0608-138

In re Brandford

Ruling
Chapter 13 case dismissed by court sua sponte where debtor's prior chapter 13 case was still pending.
Procedural posture

The court sua sponte raised the issue of whether the debtor's chapter 13 case should be dismissed for cause pursuant to 11 U.S.C.S. § 1307(c) where a prior chapter 13 case involving the same debtor, in which the debtor had not yet received a discharge, was pending before the court.

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Consumer opinion summary, case decided on April 17, 2008 , LexisNexis #0508-087

In re Harrison

Ruling
Unsecured claim by county treasurer for unpaid personal property tax allowed over trustee's objection.
Procedural posture

A debtor filed for bankruptcy relief and a county treasurer filed an unsecured claim on behalf of the county for unpaid personal property taxes in the amount of $663. A trustee objected to the claim.

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Consumer opinion summary, case decided on April 07, 2008 , LexisNexis #0608-075

In re Turner

Ruling
Debtor who intended to surrender residence was entitled to deduct mortgage payments from disposable income calculation.
Procedural posture

A trustee objected to confirmation of a debtor's chapter 13 plan on the ground that it did not meet the "disposable income" or "good faith" tests of 11 U.S.C.S. § 1325.

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Consumer opinion summary, case decided on March 27, 2008 , LexisNexis #0408-093

Burt v. Burt (In re Burt)

Ruling
Debtor's obligation to hold former spouse harmless on mortgage was nondischargeable.
Procedural posture

Plaintiff, the former wife of defendant chapter 7 debtor, filed a complaint against the debtor, seeking a determination that the marital debt owed by the debtor under their dissolution decree was excepted from his discharge pursuant to 11 U.S.C.S. § 523(a)(5) or § 523(a)(15).

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Consumer opinion summary, case decided on March 27, 2008 , LexisNexis #0508-030

Mitchem v. House (In re House)

Ruling
Wrongful death judgment did not include findings on intent or willfulness and was dischargeable.
Procedural posture

Plaintiff judgment creditor filed an action against defendant debtor to determine the dischargeability of a civil judgment owed to the creditor by the debtor. The creditor claimed that the debt was nondischargeable under 11 U.S.C.S. § 523(a)(6). The court held a trial on the matter, and issued findings of facts and conclusions of law.

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Consumer opinion summary, case decided on March 14, 2008 , LexisNexis #0408-113

In re Springirth

Ruling
Case ordered converted or dismissed where married above median debtor filing singly had sufficient disposable income to fund plan.
Procedural posture

A debtor filed for relief under chapter 7 of the United States Bankruptcy Code. The United States Trustee filed a motion to dismiss the case, pursuant to 11 U.S.C.S. § 707(b)(2) or (3).

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Consumer opinion summary, case decided on February 29, 2008 , LexisNexis #0408-085