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eastern district of wisconsin

Kovacs v. United States (In re Kovacs)

Ruling
Action for violation of discharge injunction against IRS was time barred.
Procedural posture

After the District Court for the Eastern District of Wisconsin vacated the court's ruling awarding $25,000 to plaintiff debtor on an adversary complaint filed against defendant United States (IRS) for violation of a discharge injunction granted under 11 U.S.C.S. § 524 on the ground that the statute of limitations in 26 U.S.C.S. § 7433(d)(3) did not apply, the district court directed the court to consider whether the suit was time-barred.

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Consumer opinion summary, case decided on July 09, 2008 , LexisNexis #1008-098

In re Smith

Ruling
Maintenance and gap insurance costs, interest and negative equity in 910 vehicle loan were included in purchase money security interest as provided by state law.
Procedural posture

A debtor objected to the debtor's first and second amended chapter 13 plans, which proposed to cram down the creditor's secured claim to the value of its collateral and was prohibited by 11 U.S.C.S. § 1325(a) (hanging paragraph referencing paragraph 5).

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Consumer opinion summary, case decided on June 25, 2008 , LexisNexis #1108-088

In re Cannon

Ruling
Creditor could not require deposit for continuation of utility service where not required under state law.
Procedural posture

A debtor filed a motion, pursuant to 11 U.S.C.S. § 366(b), for a modification of the deposit requested by a creditor for continued utility service.

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Consumer opinion summary, case decided on June 23, 2008 , LexisNexis #0708-113

Wisconsin v. Schauer (In re Schauer)

Ruling
Child care program overpayments owed to state were nondischargeable "domestic support obligations."
Procedural posture

Plaintiff-creditor, the State of Wisconsin, brought an adversary proceeding under 11 U.S.C.S. § 523(a)(5) seeking a determination that an obligation owed by the defendant debtor was excepted from the debtor's discharge as a domestic support obligation within the meaning of 11 U.S.C.S. § 101(14A), that was owed to a governmental entity.

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Consumer opinion summary, case decided on June 13, 2008 , LexisNexis #0808-001

Wisconsin Dept of Workforce Dev. v. Ratliff

Ruling
State agency's claim for food stamp overpayment was a domestic support obligation entitled to priority status.
Procedural posture

Creditor, the Wisconsin Department of Workforce Development (Department) appealed from an order of the bankruptcy court that disallowed priority status for the Department's claim against the debtor for food stamp overpayments she received when her former spouse was residing with her. The Department asserted the claim was a domestic support obligation.

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Consumer opinion summary, case decided on June 04, 2008 , LexisNexis #0708-044

Sensient Techs. Corp. v. Baiocchi (In re Baiocchi)

Ruling
Obligation to repay tuition reimbursement to former employer was nondischargeable.
Procedural posture

Defendant debtor filed for relief under chapter 7 of the Bankruptcy Code. Plaintiff former employer sought recovery of educational expenses incurred by the employer when the employee (debtor) participated in a tuition reimbursement program with the employer and sought to have the expenses declared nondischargeable under 11 U.S.C.S. § 523(a)(8). The parties filed cross- motions for summary judgment.

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Consumer opinion summary, case decided on June 04, 2008 , LexisNexis #0708-077

In re Nething

Ruling
Above-median debtors' plan could include attorneys' fee payments in payments to unsecured creditors.
Procedural posture

The debtors filed for relief under chapter 13 of the Bankruptcy Code and the debtors submitted a proposed amended plan for confirmation. The trustee objected to confirmation of the amended plan.

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Consumer opinion summary, case decided on May 30, 2008 , LexisNexis #0708-090

In re Zabringer

Ruling
Student loan payments were not "special circumstances" that could be deducted from projected disposable income calculation.
Procedural posture

A trustee objected to confirmation of a debtor's amended chapter 13 plan on the ground that it did not provide for all of the debtor's projected disposable income, pursuant to 11 U.S.C.S. § 1325(b)(1)(B).

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Consumer opinion summary, case decided on May 30, 2008 , LexisNexis #0708-086

In re Spraggins

Ruling
Decision that below median debtor did not need to dedicate tax refunds to plan distinguished from seemingly conflicting precedent.
Procedural posture

The bankruptcy court previously overruled the chapter 13 trustee's objection to confirmation of the debtor's proposed plan and confirmed the plan. The Trustee appealed, and in his motion to stay pending appeal, noted that the court's opinion conflicted with the district court's decision in In re Navejer. The bankruptcy court issued a supplemental opinion to provide the its rationale for its holding.

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Consumer opinion summary, case decided on May 14, 2008 , LexisNexis #0608-130

In re Eiler

Ruling
Bank violated discharge injunction by seeking to collect fees and costs not allowed for in reaffirmation agreement.
Procedural posture

Debtors were a married couple who entered into a reaffirmation agreement with a bank to which the mortgage loan on their residence had been transferred during a prior bankruptcy case (Case 1). In their current case, a chapter 13 (Case 2), debtors objected to the bank's secured proof of claim on the ground that attorneys fees and other costs were improperly included therein.

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Consumer opinion summary, case decided on May 14, 2008 , LexisNexis #0608-114