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eastern district of wisconsin

In re Brandenburg

Ruling
Presumption of abuse arose after adjustment of disposable income calculation to eliminate improper deduction.
Procedural posture

The debtor filed for relief under chapter 7. The U.S. Trustee filed a motion to dismiss the debtor's case for abuse, based on the presumption of abuse arising under 11 U.S.C. § 707(b)(2) or alternatively under the totality of the circumstances under 11 U.S.C. § 707(b)(3).

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opinion summary, case decided on May 15, 2007 , LexisNexis #0707-046

Grice v. We Energies

Ruling
Chapter 13 debtor was not eligible for discharge where less than four years had elapsed since discharge in converted chapter 7 case.
Procedural posture

Defendant trustee filed a motion for judgment on the pleadings declaring that plaintiff debtor was not entitled to a discharge in her chapter 13 case, pursuant to 11 U.S.C. § 1328(f)(1).

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opinion summary, case decided on April 17, 2007 , LexisNexis #0607-017

In re Westenberg

Ruling
Debtor who completed all plan payments was entitled to discharge despite failure to fully satisfy several secured claims.
Procedural posture

Chapter 13 trustee filed a motion to dismiss debtors'case, claiming that debtors were not entitled to a discharge because certain secured claims had not been fully satisfied at the end of the confirmed plan's term. Debtors objected to the motion.

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opinion summary, case decided on March 30, 2007 , LexisNexis #0507-032

In re Sawdy

Ruling
Above-median debtors were entitled to flat vehicle ownership deduction regardless of whether or not subject to lien or lease agreement.
Procedural posture

Chapter 13 trustee objected to debtors'chapter 13 plan on the grounds that it did not devote all of debtors'projected disposable income to the plan as required by 11 U.S.C. § 1325(a)(3) and (b)(1)(B).

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opinion summary, case decided on February 20, 2007 , LexisNexis #0407-045

In re Gilbertson

Ruling
Bankruptcy court erred in reducing fee claimed by trustee's attorney pursuant to approved contingency fee agreement.
Procedural posture

Appellant collection attorney sought review of an order of the bankruptcy court, which reduced the fees owed him by the bankruptcy trustee under his one-third contingency fee arrangement with the trustee, which the bankruptcy court had previously approved, for his efforts in recovering $10,000 of the $12,500 that the debtor had fraudulently transferred to a Wisconsin lawyer.

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opinion summary, case decided on February 04, 2007 , LexisNexis #0307-126

In re Nockerts

Ruling
Mortgage payments on property to be surrendered were "scheduled as contractually due" and could be deducted from debtors'current monthly income.
Procedural posture

The U.S. Trustee filed a motion to dismiss chapter 7 debtors'case based on a presumption of abuse under 11 U.S.C. § 707(b)(2) or as an abuse under section 707(b)(3).

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opinion summary, case decided on December 14, 2006 , LexisNexis #0307-012

In re Grunert

Ruling
Car payments are not a prerequisite for the ownership deduction.
Procedural posture

Chapter 13 debtors were above-median debtors who owned two vehicles that had no liens or lease obligations on them. On Form B22C, debtors deducted $471 and $332, respectively, for the Local Standards: transportation ownership/lease expense for their vehicles. A creditor filed an objection to confirmation of debtors'plan, arguing debtors were not allowed to take an ownership/lease expense deduction on any vehicle that was owned free and clear.

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opinion summary, case decided on November 20, 2006 , LexisNexis #0107-076

In re Turkowitch

Ruling
Surrender of vehicles satisfied secured claims in full, including deficiency balance.
Procedural posture

Chapter 13 bankruptcy debtors proposed plans which provided for the surrender of vehicles to creditors secured by the vehicles in full satisfaction of their debts to the creditors under 11 U.S.C. § 1325(a). The creditors objected to confirmation of the debtors'plans on the ground that the hanging paragraph at the end of section 1325(a) did not preclude allowance of unsecured claims for deficiency balances.

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opinion summary, case decided on November 16, 2006 , LexisNexis #0107-079

Case v. Wells Fargo Bank (In re Case)

Ruling
Reconsideration was proper procedure for debtors to contest "interest on interest" chapter 13 plan payments.
Procedural posture

In a consolidated action, plaintiffs, chapter 13 debtor-mortgagors, asserted that their respective defendant creditors were paid "interest on interest" through their respective chapter 13 plans in violation of 11 U.S.C. § 1322(e). All adversary complaints were met with motions to dismiss filed by all creditors.

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opinion summary, case decided on October 31, 2006 , LexisNexis #1206-139

Maxwell v. Michigan Fid. Acceptance Corp. (In re Maestas)

Ruling
Adversary proceeding to recover money judgement was not barred by res judicata where trustee had successfully pursued avoidance proceeding.
Procedural posture

In a prior adversary proceeding, plaintiff chapter 7 trustee obtained a default judgment against defendant creditor that avoided a refinanced mortgage a preferential transfer. The trustee filed the instant adversary proceeding to recover against the creditor a money judgment, pursuant to 11 U.S.C. § 550, equal to the value of the avoided transfer. The creditor filed a motion to dismiss or, in the alternative, for judgment on the pleadings.

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opinion summary, case decided on October 31, 2006 , LexisNexis #1206-135