Judge Mahoney

In re Adesta Communs. Inc.

Trustee for a Chapter 11 debtor's secured creditors' trust filed a motion for contempt against the Illinois Secretary of State alleging that the State violated the discharge injunction under 11 U.S.C.S. § 524(a)(2) by revoking the debtor's right to do business in the State.
Ruling: 
Secretary of state violated discharge injunction by revoking debtor's right to do business in- state.
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Commercial case opionion summary, case decided on August 05,2010, LexisNexis #1010-139

Kloos v. U.S. Dept. of Educ. (In re Kloos)

Plaintiff Chapter 7 debtor filed a complaint against defendant, the United States Department of Education, seeking a hardship discharge of a consolidated student loan pursuant to 11 U.S.C.S. § 523(a)(8).
Ruling: 
Undue hardship discharge of student loan debt granted where debtor's financial position was unlikely to improve and payoff would take 25 years.
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Consumer case opionion summary, case decided on August 05,2010, LexisNexis #1010-117

Hart v. Bel Fury Invsts. Group LLC (In re Hart)

Debtor filed this adversary proceeding against defendant, an entity (purchaser) that purchased two parcels of real estate formerly owned by debtor, alleging that the purchaser obtained the parcels via a preferential transfer, 11 U.S.C.S. § 547. The purchaser moved for summary judgment, asserting that debtor could not establish the necessary elements of a preferential transfer.
Ruling: 
Debtor could not avoid transfer of property to purchaser where creditor received proceeds.
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Consumer case opionion summary, case decided on June 16,2010, LexisNexis #0910-087

Glenn v. Ocwen Loan Servicing LLC (In re Glenn)

Debtors brought a postdischarge complaint seeking damages against defendant creditor, the mortgagee on the debtors' residential loan, asserting the creditor failed to remove certain disallowed charges from their account for 4 years in violation of court orders, including the discharge injunction of 11 U.S.C.S. § 524(a), which failed to comply with Fed. R. Bankr. P. 2016, and which was punishable as contempt under 11 U.S.C.S. § 105.
Ruling: 
Bank's failure to remove disallowed charges from debtors' account for four years did not violate discharge injunction absent attempt to collect.
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Consumer case opionion summary, case decided on May 28,2010, LexisNexis #0910-034

In re Sprague

A chapter 13 debtor filed a motion to avoid a lien under 11 U.S.C.S. § 522(f)(1)(A) as impairing the exemption to which he was entitled. The lienholder opposed the motion, arguing that if the lien was avoided at all, it should be avoided only as to the debtor's interest in the property, not his wife's interest.
Ruling: 
Lien avoided as impairing homestead exemption but would not be released until completion of plan payments.
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Consumer case opionion summary, case decided on May 18,2010, LexisNexis #0810-007

Overturf v. Cory Dev. Inc. (In re Thimsen-Villa)

Plaintiff creditor filed a complaint against defendant chapter 7 debtor, his former wife, to except a debt from discharge under 11 U.S.C.S. § 523(a)(15). The creditor moved for summary judgment, and the debtor did not object to the motion.
Ruling: 
Attorneys' fees for which debtor was obligated under divorce decree was nondischargeable.
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Consumer case opionion summary, case decided on April 20,2010, LexisNexis #0710-052

Southeast Neb. Coop. Co. v. Schnuelle (In re Schnuelle)

Plaintiff cooperative brought an adversary proceeding against defendant chapter 12 debtors to obtain a determination that an obligation owed by the debtors to the cooperative was non-dischargeable under 11 U.S.C.S. § 523. The adversary proceeding was dismissed as to the debtor wife.
Ruling: 
Debt was excepted from discharge where chapter 12 debtor provided materially false documentation in order to obtain financing.
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Consumer case opionion summary, case decided on April 09,2010, LexisNexis #0610-089

Lange v. Inova Capital Funding LLC (In re Qualia Clinical Serv.)

Plaintiff chapter 7 trustee brought an adversary proceeding against defendant creditor, the purchaser of certain accounts receivable from the debtor, seeking to avoid the transfer of accounts as a preference under 11 U.S.C.S. § 547. The trustee moved for summary judgment, and the creditor moved for summary judgment on the basis of an absolute defense under 11 U.S.C.S. § 547(c)(5).
Ruling: 
Filing of UCC filing statement within 90 days of petition date was a preferential transfer.
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Commercial case opionion summary, case decided on April 06,2010, LexisNexis #0610-126

Noland v. Iowa Student Loan Liquidity Corp. (In re Noland)

Chapter 7 debtor filed an adversary proceeding against defendant creditor to determine the dischargeability of his student loan debt under 11 U.S.C.S. § 523(a)(8). He argued that the loans were not "qualified education loans" as defined in 26 U.S.C.S. § 221(d)(1), and that repaying the student loans would cause him an undue hardship. The debtor filed a motion for summary judgment, and the creditor objected.
Ruling: 
Debtor's use of proceeds for non-educational purposes did not change status of nondischargeable student loans.
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Consumer case opionion summary, case decided on March 30,2010, LexisNexis #0710-018

In re BowlNebraska LLC v. Omaha State Bank (In re BowlNebraska LLC)

Plaintiff bankruptcy debtor, a limited liability company, brought an adversary proceeding against defendant mortgage creditor seeking to avoid the creditor's lien against the debtor's property on the ground that the relevant deeds of trust were not properly acknowledged and recorded. The creditor moved for judgment on the pleadings.
Ruling: 
Debtor could avoid deeds of trust that were improperly acknowledged under state law.
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Commercial case opionion summary, case decided on March 15,2010, LexisNexis #0710-053

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