Skip to main content

Page Banner(Taxonomy)

judge mcdonald

Marby v. United States Dept of Educ. Natl Payment Ctr. (In re Marby)

Ruling
Homeless and unemployed debtor granted undue hardship discharge of student loan debt.
Procedural posture

Plaintiff debtor filed an adversary proceeding seeking a determination that the student loan debts he incurred were included in his chapter 7 discharge pursuant to 11 U.S.C.S. § 523(a)(8).

ABI Membership is required to access the full summary of Marby v. United States Dept of Educ. Natl Payment Ctr. (In re Marby) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on November 21, 2008 , LexisNexis #0109-102

Cadlerock Joint Venture II LP v. Sandiford (In re Sandiford)

Ruling
Bankruptcy court properly overruled objection to discharge where it deemed that debtors had rebutted presumption of fraud.
Procedural posture

Appellant joint venture (JV) sought review of a decision of the Bankruptcy Court for the Western District of Arkansas, which denied the JV's objection to discharge of appellee debtors in a chapter 7 proceeding. The debtors moved to Arkansas, conducted a real estate business, and created three family trusts.

ABI Membership is required to access the full summary of Cadlerock Joint Venture II LP v. Sandiford (In re Sandiford) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on October 06, 2008 , LexisNexis #1108-016

Kaler v. Bala (In re Racing Servs.)

Ruling
Bankruptcy court did not abuse discretion in partially vacating order for equitable subordination of claims by debtor's founder and former CEO.
Procedural posture

Appellants, the chapter 7 trustee and the State of North Dakota, challenged a ruling of the Bankruptcy Court for the District of North Dakota granting a motion to vacate part of an order that had equitably subordinated the claims of appellee, the former founder and CEO of debtor, as permitted by 11 U.S.C.S. § 510. Both appellants had unsuccessfully objected to the motion to vacate.

ABI Membership is required to access the full summary of Kaler v. Bala (In re Racing Servs.) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on April 25, 2008 , LexisNexis #0508-080

Peltz v. Merisel Americas Inc. (In re Bridge Info. Sys.)

Ruling
Alteration in payment terms defeated ordinary course of business defense to avoidance.
Procedural posture

Plaintiff administrator of a bankruptcy debtor's plan brought an adversary proceeding against defendant distributor of computer systems for enhancement and resale by the debtor. The administrator sought to avoid payments to the distributor as preferential, and the distributor asserted defenses based on the ordinary course of business and providing subsequent new value under 11 U.S.C.S. § 547(c)(2), (4).

ABI Membership is required to access the full summary of Peltz v. Merisel Americas Inc. (In re Bridge Info. Sys.) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on March 03, 2008 , LexisNexis #0508-032

Killips v. Schropp (In re Prime Realty Inc.)

Ruling
Bankruptcy court properly held that loan payments were not avoidable where trustee's analysis of debtor's insolvent status at time of transfers was flawed.
Procedural posture

Plaintiff trustee filed adversary proceedings against defendants, a corporation and two individuals, seeking an order avoiding transfers which a chapter 11 debtor made to the defendants, as either preferential transfers under 11 U.S.C. § 547(b) or constructively fraudulent transfers under 11 U.S.C. § 548(a)(1)(B). The Bankruptcy Court for the District of Nebraska entered judgment in favor of the defendants, and the trustee appealed.

ABI Membership is required to access the full summary of Killips v. Schropp (In re Prime Realty Inc.) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on December 27, 2007 , LexisNexis #0108-098

Wallace v. Educ. Credti Mgmt. Corp. (In re Wallace)

Ruling
Debtor who flunked bar exam an was unable to secure permanent position granted undue hardship discharge of student loan debt.
Procedural posture

Plaintiff, a discharged chapter 7 debtor, filed an adversary proceeding seeking a determination that the student loan debt she incurred while obtaining her law degree was included in her discharge pursuant to 11 U.S.C. § 523(a)(8).

ABI Membership is required to access the full summary of Wallace v. Educ. Credti Mgmt. Corp. (In re Wallace) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on November 27, 2007 , LexisNexis #0108-026

In re Mordis

Ruling
Loan payments and contributions to thrift savings plan were not proper expenses and once excluded resulted in dismissal for presumption of abuse.
Procedural posture

The United States Trustee filed a motion to dismiss chapter 7 debtor's case, arguing that granting the debtor relief would constitute an abuse of the provisions of chapter 7 as provided in 11 U.S.C. § 707(b)(1).

ABI Membership is required to access the full summary of In re Mordis Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on October 09, 2007 , LexisNexis #1107-080

Stifel Nicolaus & Co. v. Smithson (In re Smithson)

Ruling
Debtor's placement of stock purchase order for which he could not pay rendered debt nondischargeable.
Procedural posture

Plaintiff creditor filed an adversary proceeding against defendant debtor seeking a determination that its debt was nondischargeable pursuant to 11 U.S.C. § 523(a)(2)(A). The creditor also asserted that the debtor should not be granted a discharge pursuant to either 11 U.S.C. § 727(a)(4) or (a)(5).

ABI Membership is required to access the full summary of Stifel Nicolaus & Co. v. Smithson (In re Smithson) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on July 31, 2007 , LexisNexis #0807-133

Czapla v. Rozier (In re Rozier)

Ruling
State court fraud judgment obtained postpetition was not void as debtor did not disclose pendency of chapter 7 case or list plaintiff creditor in schedules.
Procedural posture

Plaintiff creditors brought an adversary complaint against debtor for an order that a judgment obtained against debtor in state court for fraud arising out of breach of a construction contract was excepted from discharge under 11 U.S.C. § 523(a)(3)(B). At issue, inter alia, was the effect, if any, on the enforceability of the judgment that the underlying lawsuit was prosecuted during the pendency of the automatic stay under 11 U.S.C. § 362.

ABI Membership is required to access the full summary of Czapla v. Rozier (In re Rozier) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on June 29, 2007 , LexisNexis #0807-097

Velde v. First Intl Bank & Trust (In re Y-Knot Constr. Inc.)

Ruling
Aproval of settlement of preference proceeding reversed as bankruptcy court failed to make required findings of fact.
Procedural posture

Appellant creditor, a bank, challenged an order from the Bankruptcy Court for the District of Minnesota, which granted a motion of appellee trustee to compromise a preference action against another creditor, a lumber company, under Fed. R. Bankr. P. 9019.

ABI Membership is required to access the full summary of Velde v. First Intl Bank & Trust (In re Y-Knot Constr. Inc.) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Court :
Judge or Jurisdiction information not available
opinion summary, case decided on June 08, 2007 , LexisNexis #0807-030