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District of wisconsin

Mann v. Smith (In re Smith)

Ruling
Denial of discharge for failure to appear at hearing on default motion vacated based on excusable neglect.
Procedural posture

Defendant debtors filed for relief under chapter 7 of the Bankruptcy Code, and in an earlier proceeding, the court granted plaintiff trustee's motion for a default judgment and entered an order denying the debtors' discharge under 11 U.S.C.S. § 727(a)(2). The debtors filed a letter with the court that the court construed as a motion to vacate the order denying discharge.

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Consumer opinion summary, case decided on May 14, 2008 , LexisNexis #0608-119

In re Martinez

Ruling
Case dismissed for abuse where debtors were not entilted to pro rata expense allowance for any loan that could be paid off before the commitment period.
Procedural posture

The United States Trustee filed a motion to dismiss chapter 7 debtors'bankruptcy case pursuant to 11 U.S.C.S. § 707(b)(1), based on § 707(b)(2) and § 707(b)(3).

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Consumer opinion summary, case decided on May 08, 2008 , LexisNexis #0608-049

In re Ford

Ruling
Vehicle loan could be bifurcated as vehicle purchased by debtor for fiancee was not for personal use.
Procedural posture

A bankruptcy debtor proposed a plan which bifurcated a claim of a creditor secured by a motor vehicle into secured and unsecured claims and pay only the secured portion in full. The creditor objected to the debtor's plan on the ground that 11 U.S.C.S. § 1325(a) (hanging paragraph referencing paragraph 5) precluded such bifurcation.

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Consumer opinion summary, case decided on April 29, 2008 , LexisNexis #0608-127

In re Rither

Ruling
Plan not proposed in good faith due to debtor's attempt to circumvent contribution of one-half of tax refund.
Procedural posture

A debtor filed for relief under chapter 13 of the Bankruptcy Code and the original plan was confirmed on May 31, 2005. A trustee moved to dismiss the case because the debtor did not provide her 2005 and 2006 income tax returns and one-half of the refunds. The parties agreed to modify the plan, and an amended plan was filed. The trustee opposed confirmation of the amended plan.

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Consumer opinion summary, case decided on April 16, 2008 , LexisNexis #0608-032

In re Spraggins

Ruling
Plan of below median debtor proposing to dedicate 50% of tax refunds for three years could be confirmed.
Procedural posture

A debtor filed for relief under chapter 13, and submitted a proposed plan. A trustee objected to the plan, contending that the debtor needed to dedicate 100% of her tax refunds for 36 months or that the debtor could propose a plan for 60 months with contributions of 50% of the tax refunds.

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Consumer opinion summary, case decided on April 11, 2008 , LexisNexis #0508-126

In re Spraggins

Ruling
Below-median debtor was not required to devote 100% of tax refunds for three years of proposed plan.
Procedural posture

A debtor filed for relief under chapter 13 of the Bankruptcy Code, and submitted a proposed plan. A trustee objected to the plan, contending that the debtor needed to dedicate 100% of her tax refunds for 36 months or that the debtor could propose a plan for 60 months with contributions of 50% of the tax refunds.

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Consumer opinion summary, case decided on April 11, 2008 , LexisNexis #0508-019

In re Crego

Ruling
Debtors could claim expenses of maintaining separate households as "special circumstances."
Procedural posture

Debtors, a husband and wife, filed a joint petition under chapter 7 of the Bankruptcy Code but converted their case to one under chapter 13 after the United States Trustee moved to dismiss their case as an abuse of the provisions of chapter 7. A chapter 13 trustee was appointed to represent the bankruptcy estate, and he filed an objection to the debtors' chapter 13 plan.

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Consumer opinion summary, case decided on April 02, 2008 , LexisNexis #0408-119

Case v. Wells Fargo Bank

Ruling
Challenge to interest on interest payments in confirmed plans dismissed due to application of res judicata.
Procedural posture

The dispute involved interest on interest payments made under confirmed plans. Plaintiff debtors asserted the payments violated 11 U.S.C.S. § 1322(e). Count I of each complaint sought disgorgement under 11 U.S.C.S. § 502(j). Count II alleged abuse of process under 11 U.S.C.S. § 105. Debtors also sought class certification. Defendants were secured creditors. The matter was remanded by the U.S. District Court for the Eastern District of Wisconsin.

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Consumer opinion summary, case decided on March 19, 2008 , LexisNexis #0508-070

Heavrin v. Schilling (In re Triple S Restaurants Inc.)

Ruling
Sanctions properly imposed against debtor's general counsel for unfounded action against chapter 7 trustee.
Procedural posture

Plaintiff general counsel sued defendant chapter 7 bankruptcy trustee in state court for outrage and intentional infliction of emotional distress. The trustee removed the case to federal bankruptcy court, had the case dismissed, and had sanctions imposed under Fed. R. Bankr. P. 9011. The general counsel appealed the United States District Court for the Western District of Kentucky at Louisville's affirmation.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on March 17, 2008 , LexisNexis #0408-035

In re Van Bodegom Smith

Ruling
Debtors could not take deduction for mortgage payments on property intended for surrender from disposable income calculation.
Procedural posture

Chapter 13 trustee filed an objection to confirmation of the debtors' chapter 13 plan, alleging that the debtors had failed to commit all of their disposable income to the plan as required by 11 U.S.C.S. § 1325(b)(1)(B).

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Consumer opinion summary, case decided on March 06, 2008 , LexisNexis #0408-126