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Northern District

Benson v. Dunbar (In re Dunbar)

Plaintiff judgment creditor filed an action against defendant debtor, alleging that a default judgment awarded to her by an Illinois state court was not dischargeable pursuant to 11 U.S.C. § 523(a)(6) because the predicate injury was willful and malicious. The debtor had pled guilty to criminal battery for causing the creditor's injury. The court made findings of fact and conclusions of law.
Ruling: 
Civil judgment for damages from criminal battery was nondischargeable.
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Huisinga v. Greater Quad City Auto Auction (In re Hocken)

Plaintiff, a chapter 7 trustee, filed an action against defendant, an auto auction company (auction), to obtain turnover of proceeds, pursuant to 11 U.S.C. § 550, that the trustee claimed belonged to the estate.
Ruling: 
Trustee could avoid return of vehicle to auction house where it had been purcahsed by debtor.
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In re Vantiger-Witte

The debtor filed a petition in bankruptcy under chapter 12. The Farm Service Administration ("FSA") filed a renewed motion to dismiss, contending that the debtor was not an eligible debtor under chapter 12.
Ruling: 
Debtor who received at least 50% of gross income from farming was an eligible chapter 12 debtor.
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In re Knudsen

Chapter 12 debtors sought confirmation of their plan. Objections were filed by the United States on behalf of the IRS and by the trustee.
Ruling: 
Family farmer debtors were not entitled to favorable tax treatment of sale of hogs.
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Community State Bank v. Lynch Dallas PC (In re Allen)

Plaintiff creditor filed a complaint against defendants, debtors, their former business corporation, their attorneys and the chapter 7 trustee. The creditor sought turnover of $15,000 which it asserted was collateral pledged by the corporation. The complaint also sought to except the debt from discharge under 11 U.S.C. § 523(a)(6). Defendants moved to dismiss the request for turnover for lack of subject matter jurisdiction.
Ruling: 
Complaint seeking turnover from non-debtor corporation was not related to bankruptcy.
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Fokkena v. Peterson (In re Peterson)

Plaintiff United States Trustee filed a complaint to revoke defendant debtor's discharge under 11 U.S.C. § 727(d)(1) on the grounds that the chapter 7 debtor concealed or transferred estate assets with the intent to hinder, delay, or defraud the trustee and creditors and knowingly and fraudulently made a false oath in his schedules and statement of financial affairs and at the creditors'meeting.
Ruling: 
Discharge revoked due to numerous omissions and misrepresentations.
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In re Donohue

Debtor filed an application for an order to show cause seeking a determination that a county improperly made attempts to collect a debt postdischarge. The county asserted that its claim, based on jail room and board fees, was excepted from discharge under 11 U.S.C. § 523(a)(7). The debtor believed that the debt was discharged and asked that the county be held in contempt for violating the discharge injunction under 11 U.S.C. § 727(b).
Ruling: 
Jail room and board costs assesed due to revocation of debtor's probation were excepted from discharge.
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In re Tuecke

The debtors filed a motion for sanctions against creditor for alleged violations of the automatic stay pursuant to 11 U.S.C. §§ 362(a)(6) and 362(h). The debtors alleged that the creditor garnished the wife debtor's wages postpetition.
Ruling: 
Postpetition wage garnishment violated stay, entitling debtor to actual damages, costs, attorneys'fees and punitive damages.
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In re Zirtzman

The debtors moved for confirmation of their chapter 13 plan. The unresolved issue for confirmation was whether the plan length was to be for three years, as proposed in the debtors'plan, or for five years, as indicated on Official Bankr. Form B22C and 11 U.S.C. §§ 1322 and 1325.
Ruling: 
Plan was not confirmable as debtor's income was above median income but proposed applicable commitment period was for three rather thanthe required five years.
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Schnittjer v. Allied Props. & Cas. Ins. Co. (In re Huebbe)

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant insurance company to recover an amount paid directly to the debtor in a settlement agreement reached after the debtor had filed for bankruptcy. The trustee alleged that the insurance company's violation of the automatic stay was willful and sought to recover damages and attorneys' fees. The insurance company claimed that it never received notice of the bankruptcy.
Ruling: 
Payment of insurance proceeds directly to debtor violated stay where agent's knowledge of filing was imputed to company.
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