Nov
13
2007
Brown v. American Educ. Servs. Inc.
Plaintiff debtor filed an action against defendant creditors for a determination pursuant to 11 U.S.C. § 523(a)(8) that the debtor's student loan obligation owed to the creditor should be discharged. The debtor claimed that excepting the loan from discharge would impose an undue hardship.
Ruling:
Debtor whose sole income was social security and unemployment granted undue hardship discharge of student loan debt.
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Consumer case opionion summary, case decided on November 13,2007, LexisNexis #1207-077
Oct
17
2007
Bank of Iberia v. Jeffries (In re Jeffries)
Plaintiff creditor filed an adversary proceeding against defendants, husband and wife debtors, seeking a determination that its debt was nondischargeable pursuant to 11 U.S.C. § 523(a)(6) and that the debtors be denied a discharge under 11 U.S.C. § 727(a)(2). Because the complaint involved only actions taken by the husband (debtor) and there was no evidence that the wife participated in the actions, the debt was discharged as to the wife.
Ruling:
Removal of parts from truck caused damage to collateral so that debt was nondischargeable.
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Consumer case opionion summary, case decided on October 17,2007, LexisNexis #1207-008
Sep
11
2007
In re Adams
Bankruptcy debtors claimed a Florida homestead exemption in property located in another state where the debtors now resided, asserting that Florida's exemption laws applied under 11 U.S.C. § 522(b)(3)(A) based on their prior residence in Florida. The trustee objected to the claimed exemption.
Ruling:
Debtors who formerly resided in Florida could not claim Florida homestead exemption in property located in another state where they now resided.
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Consumer case opionion summary, case decided on September 11,2007, LexisNexis #1007-077
Mar
20
2007
Gakiny v. Columbia College (In re Gakinya)
Defendant debt collector filed a motion for summary judgment in chapter 7 debtor's action, which alleged that the debt collector and defendant college violated the discharge injunction by attempting to collect a debt owed to the college by debtor that was discharged by the discharge order entered in debtor's bankruptcy case. Debtor filed a motion for summary judgment.
Ruling:
Tuition obtained through college's deferred payment plan was a nondischargeable student loan.
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Jan
24
2007
McLaughlin v. U.S. Funds (In re McLaughlin)
In this adversary proceeding, plaintiff debtors sought a determination, pursuant to 11 U.S.C. § 523(a)(8), that their student loan debt, owed to defendant creditors should be discharged for the reason that excepting the debts from discharge would impose upon them an undue hardship.
Ruling:
Undue hardship discharge denied where debtors listed unnecessary expenses including manicures for debtor wife and her dogs.
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Jan
23
2007
Delaney v. Carlyle (In re Carlyle)
Plaintiffs rented a home to defendant debtors. Plaintiffs sought to prove that a debt owed to them for damage to the rental property was non-dischargeable under 11 U.S.C. § 523(a)(6). Plaintiffs claimed that the debtors willfully and intentionally caused substantial damage to the property by allowing their pets to destroy certain parts of the interior and exterior of the home. An evidentiary hearing was held.
Ruling:
Damage caused to rental property by debtors'pets was not willful and malicious and did not give rise to nondischargeable debt.
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Dec
11
2006
In re Campbell
Creditor filed a motion to annul the automatic stay and validate a foreclosure sale held during the pendency of a previous chapter 13 proceeding by the debtor.
Ruling:
Stay in debtor's third chapter 13 case annulled to allow validation of foreclosure sale held during pendency of debtor's second case.
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Nov
13
2006
Auto Mart Inc. v. Wendt (In re Wendt)
Creditor filed a motion for summary judgment in its adversary proceeding against chapter 7 debtor, seeking a determination that the debt owed it by debtor was nondischargeable under 11 U.S.C. § 523(a)(2) and /or 523(a)(6).
Ruling:
Finding of constructive fraud does not provide sufficient basis for exception to discharge.
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Oct
13
2006
Towle v. Hendrix (In re Hendrix)
Plaintiffs, the professional corporation and individual who collectively formed defendant debtor's former employer, filed an adversary proceeding for a denial of the debtor's discharge pursuant to 11 U.S.C. §§ 727(a)(2), (a)(3), (a)(4), (a)(5) and (a)(6). Plaintiffs moved for partial summary judgment.
Ruling:
Discharge denied due to debtor's omission of significant information from shareholders.
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Sep
07
2006
In re Nicely
Creditors filed motions pursuant to Fed. R. Civ. P. 60, incorporated into bankruptcy proceedings by Fed. R. Bankr. P. 9024, to vacate the court's orders, which overruled their objections to debtors'chapter 13 plan.
Ruling:
Where debtor proposed to surrender vehicles subject to section 1325(a) hanging paragraph, allowing creditors to claim deficiency would create impermissible bifurcation of claim.
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