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judge kelley

In re Evenson

Ruling
Trustee could not abandon family farm that was property of the estate and in which equity remained for creditors.
Procedural posture

Debtors filed a petition under chapter 12 and voluntarily converted their case to one under chapter 7. A trustee was appointed to administer the debtor's chapter 7 bankruptcy case, and he filed a motion seeking permission to abandon a farm the debtors owned. An unsecured creditor filed an objection to the trustee's motion.

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Consumer opinion summary, case decided on November 03, 2010 , LexisNexis #1210-103

Estate of Sustache v. Mathews (In re Mathews)

Ruling
Debtor's actions in self-defense, leading to death of a fellow teenager, were not malicious and did not result in nondischargeable debt.
Procedural posture

Creditors, the estate and parents of a young man who was punched by the 16 year old debtor at a party, fell down, struck his head, and died, filed a complaint alleging their claim against the debtor was nondischargeable as a willful and malicious injury under 11 U.S.C.S. § 523(a)(6). The parties stipulated the bankruptcy court would determine dischargeability and if necessary, the case would return to state court as to damages. A trial was held.

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Consumer opinion summary, case decided on August 20, 2010 , LexisNexis #1010-050

In re Meyers

Ruling
Objection to late disclosure of and exemption in tax refund overruled where initial failure to disclose and exempt was involuntary and not in bad faith.
Procedural posture

Bankruptcy debtors amended their schedules to include an income tax refund after the bankruptcy trustee intercepted and disclosed the refund. The debtors claimed an exemption in the refund and the trustee objected to the exemption based on the debtors' alleged bad faith.

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Consumer opinion summary, case decided on July 08, 2010 , LexisNexis #0910-137

In re Anderson

Ruling
Objection to confirmation based on debtor's failure to schedule and pursue malpractice claim overruled.
Procedural posture

A creditor with a construction lien and judgment against the debtors objected to confirmation of their amended chapter 13 plan on the grounds that their failure to schedule and pursue a malpractice claim against their former attorney violated the best interest of creditors test of 11 U.S.C.S. § 1325(a)(4) and demonstrated the debtors' lack of good faith.

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Consumer opinion summary, case decided on June 03, 2010 , LexisNexis #0810-065

In re Lucio

Ruling
Confirmation denied where plan did not meet the best interests of creditors test.
Procedural posture

Debtors filed a petition under chapter 13 and a plan for repaying their creditors. A trustee who was appointed to administer the debtors' bankruptcy estate filed an objection to the debtors' plan, claiming that it did not meet the best interest of creditors test required by 11 U.S.C.S. § 1325(a)(4).

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Consumer opinion summary, case decided on February 08, 2010 , LexisNexis #0410-063

GD Deal Holdings LLC v. Sharma (In re Sharma)

Ruling
Objection to discharge dismissed as debtors made sufficient disclosures which were not fraudulent.
Procedural posture

Creditor filed a complaint objecting to the discharge and dischargeability of a debt owed by debtors. Among other things, the complaint charged that debts were non-dischargeable under 11 U.S.C.S. § 727(a)(3) and (a)(4) due to insufficient disclosure of records and false oaths by the debtors, as well as under 11 U.S.C.S. § 523(a)(2) due to alleged false representations regarding the debtors' financial condition.

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Consumer opinion summary, case decided on February 03, 2010 , LexisNexis #0410-095

Ortiz v. Aurora Health Care Inc. (In re Ortiz)

Ruling
Court refused to abstain from dispute over alleged confidential medical records attached to proof of claim.
Procedural posture

Plaintiff debtors alleged that defendant creditor attached invoices containing confidential medical records to its proofs of claim, asserting that the creditor exceeded the extent needed for billing, collection, and payment of the claims under Wis. Stat. § 146.82. The debtors moved for abstention, arguing that, since the only remaining claim was grounded in unsettled state law, the issue should be determined in a state court.

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Consumer opinion summary, case decided on January 05, 2010 , LexisNexis #0210-101

In re Netwurx Inc.

Ruling
Objection to plan based on alleged failures to meet small business deadlines overruled where confirmable plan was always likely and final plan proposed immediate payment of unsecured creditors in full.
Procedural posture

Creditor filed an objection to the timeliness of the debtor's chapter 11 reorganization plan and argued that the plan could not be confirmed because the debtor failed to obtain an extension of the strict deadlines imposed on small business cases under 11 U.S.C.S. §§ 1129(e) and 1121(e)(3).

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Commercial opinion summary, case decided on September 25, 2009 , LexisNexis #1109-062

Christenson v. Lee (In re Lee)

Ruling
Claim of gun buyer was nondischargeable due to debtor seller's misrepresentations.
Procedural posture

Plaintiff gun buyer filed this adversary proceeding claiming that defendant debtor's debt to the gun buyer arose from fraud and therefore was non-dischargeable under 11 U.S.C.S. § 523(a)(2)(A). He also contended that the debtor withheld information on his schedules and that the entire discharge should be denied.

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Consumer opinion summary, case decided on September 02, 2009 , LexisNexis #1009-081

In re Nelson

Ruling
Undue hardship discharge of student loan debt denied where age was not a determinative factor and debtor could find job in a field other than chosen profession of teaching.
Procedural posture

In this adversary proceeding, the court was asked to determine that student loans of plaintiff debtor wife should be discharged as an undue hardship under 11 U.S.C.S. § 523(a)(8). Defendant was the creditor.

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Consumer opinion summary, case decided on April 30, 2009 , LexisNexis #0709-086