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District of missouri

Bank of Iberia v. Jeffries (In re Jeffries)

Ruling
Removal of parts from truck caused damage to collateral so that debt was nondischargeable.
Procedural posture

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.

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Consumer opinion summary, case decided on October 17, 2007 , LexisNexis #1207-008

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).

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

Poindexter v. Southwest Mo. Bank (In re Poindexter)

Ruling
Punitive damages assessed against creditor who did not follow reaffirmation requirements, had debtor enter into new note for amount of discharged debt, had debtor's son sign deed of trust after debtor's near-fatal stroke and retained proceeds of sale.
Procedural posture

Plaintiff chapter 7 debtor filed a complaint against defendant creditor, alleging that the creditor violated the discharge injunction of 11 U.S.C. § 524.

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Consumer opinion summary, case decided on September 12, 2007 , LexisNexis #1007-099

In re Adams

Ruling
Debtors who formerly resided in Florida could not claim Florida homestead exemption in property located in another state where they now resided.
Procedural posture

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.

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Consumer opinion summary, case decided on September 11, 2007 , LexisNexis #1007-077

In re Nickerson

Ruling
Debtors ineligible for exemptions in either filing state or state of former domicile could claim federal exemptions.
Procedural posture

A debtor filed for relief under chapter 7. The debtor sought to claim exemptions pursuant to 11 U.S.C. § 522(d), claiming that she was not eligible to take advantage of either the Missouri or Kansas exemptions due to the requirements of 11 U.S.C. § 522(b)(3)(A). A trustee objected to the use of the federal exemptions.

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Consumer opinion summary, case decided on September 07, 2007 , LexisNexis #1007-078

Sherman v. Mohela (In re Sherman)

Ruling
Debtor permanently brain damaged before completing medical school granted undue hardship discharge of student loan debt.
Procedural posture

Plaintiff debtor filed for relief under chapter 7. The debtor filed an adversary proceeding against defendant two creditors to determine dischargeability of the debtor's student loan obligations to the creditors. After a hearing, the court issued findings of fact and conclusions of law.

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opinion summary, case decided on August 15, 2007 , LexisNexis #0907-134

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).

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

Falcon Creditor Trust v. Blue Cross Blue Shield (In re Falcon Prods.)

Ruling
Transfers to third party administrator for debtor's self-funded PPO plan were below re- BAPCPA cap and not preferential.
Procedural posture

Plaintiff, the creditor trust that was the successor to the chapter 11 debtors, brought an adversary proceeding to avoid and recover alleged preferential transfers, under 11 U.S.C. §§ 547 and 550, to the defendant, the transferee of five prepetition payments from the debtors. The transferee moved for summary judgment, asserting that if the transfers were set aside, it would have a resulting priority claim under former 11 U.S.C. § 507(a)(4).

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opinion summary, case decided on July 20, 2007 , LexisNexis #0807-128

Baumgartner v. Ford Motor Credit Co. LLC

Ruling
Dispute over creditor's repossession of vehicle after lifting of stay was not related to bankruptcy.
Procedural posture

Plaintiff, a discharged chapter 7 debtor, filed a conversion suit in the Circuit Court of Callaway County (Missouri) against defendant creditor alleging that it unlawfully repossessed his truck. The debtor filed a motion to remand after the creditor removed the suit to the court. The creditor moved to reassign or transfer the case to the bankruptcy court pursuant to 28 U.S.C. § 157(a).

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opinion summary, case decided on July 09, 2007 , LexisNexis #0807-058

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.

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