- 11 U.S.C.
In re Hyman Freightways Inc.
May
18
2006
Ruling
Court denied trustee's motion seeking refund of professional fees since payments were authorized by Bankruptcy Code and approved by court.
Procedural posture
The chapter 7 trustee, purportedly under 11 U.S.C. § 726(a), filed a motion seeking a refund of professional fees from three groups of professionals who provided services to the debtor during the time the debtor was in chapter 11.
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Court
:
- 11 U.S.C.
In re Mesaba Aviation Inc.
May
18
2006
Ruling
Debtor was denied motion to reject collective bargaining agreements despite compliance with most of section 1113 requirements since debtor had not provided union with software model for making its projections.
Procedural posture
A bankruptcy debtor, a regional airline whose only customer was a network carrier which was also in bankruptcy, proposed to modify collective bargaining agreements with unions representing the debtor's employees to reduce the debtor's labor costs in reorganization. After the unions rejected the debtor's proposal, the debtor moved for authority to reject the collective bargaining agreements pursuant to 11 U.S.C. § 1113.
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Court
:
- 11 U.S.C.
In re Robinson
May
17
2006
Ruling
Court ruled that IRS had right to offset mutual debt related to debtor's prepetition tax liability and rejected argument that plan confirmation extinguished this setoff right.
Procedural posture
Movant chapter 13 debtor objected to the amended claim submitted by claimant IRS. The debtor moved to keep her income tax refunds for two taxable years notwithstanding the IRS'claim that it had a right to set off the refunds against prepetition tax liability. The IRS objected to the motion.
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Court
:
- 11 U.S.C.
In re Renicker
May
15
2006
Ruling
Trustee's motion to deny confirmation was sustained since debtors had failed to submit documentation to prove special circumstances under section 707(b)(2).
Procedural posture
Debtor husband and wife filed a chapter 13 plan proposing to pay what they determined to be all of their disposable income for 60 months. The chapter 13 trustee objected to confirmation of debtors'plan on the grounds that their disposable income was significantly higher than reported.
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Court
:
- 11 U.S.C.
In re Renicker
May
11
2006
Ruling
Plan was denied confirmation since debtors were not entitled to extraordinary expenses claimed, and plan had to calculate disposable income prospectively, not historically.
Procedural posture
The debtors filed for protection under chapter 13. The debtors filed a chapter 13 plan proposing to pay what they determined to be all of their disposable income for 60 months. The chapter 13 trustee objected to confirmation of the debtors'plan.
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Court
:
- FRBP
Tina Livestock Sales Inc. v. Schachtele (In re Schachtele)
May
11
2006
Ruling
Debtors were awarded fees and costs in having to defend against creditor's frivolous appeals of an untimely filed proof of claim.
Procedural posture
Objector-creditor appealed from an order of the Bankruptcy Court for the Eastern District of Missouri, that granted debtors'motions to amend their chapter 13 plan. After oral argument, the objector filed a dismissal of the appeals, and requested that the court deny as withdrawn or moot all actions pending on appeal. Debtors sought sanctions in the form of attorney's fees incurred pursuant to Fed. R. Bankr. P. 8020.
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In re Hicks
May
09
2006
Ruling
Debtors were not entitled to claim exemption in equity in vehicle recovered by trustee from lien avoided by trustee except for amount vehicle was worth above lien amount.
Procedural posture
A chapter 7 trustee objected to debtors'claimed exemptions in a car on the ground that any equity in the car resulted from his powers under 11 U.S.C. § 544 and therefore, debtors could not claim an exemption pursuant to 11 U.S.C. § 522(g).
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Court
:
- 11 U.S.C.
Colsen v. United States (In re Colsen)
May
04
2006
Ruling
Debtor's tax liabilities were deemed dischargeable since the post-assessment filings were "returns" under section 523(a)(1)(B)(i).
Procedural posture
Appellee debtor filed a petition for bankruptcy and initiated an adversary proceeding against appellant United States, claiming that his federal income tax liabilities were dischargeable despite 11 U.S.C. § 523(a)(1)(B)(i). The bankruptcy court found that the debts to the IRS were dischargeable. The Bankruptcy Appellate Panel for the Eighth Circuit affirmed. The government appealed.
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In re Bost
Apr
26
2006
Ruling
Attorney was ordered to disgorge all fees paid by debtors and was referred for professional discipline and criminal investigation since the attorney provided inadequate representation for all of the debtors.
Procedural posture
An attorney who represented numerous bankruptcy debtors repeatedly filed bankruptcy petitions and pleadings on behalf of debtors which contained errors and omissions, and the attorney was ordered to show cause why the attorney should not be sanctioned.
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Court
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In re Lockwood Corp.
Apr
26
2006
Ruling
Court deemed in case converted from chapter 11 to chapter 7 that disgorged funds were to be distributed pro rata among all administrative claimants not just chapter 11 administrative professionals.
Procedural posture
Debtor originally filed for relief under chapter 11, and the matter was converted to a proceeding under chapter 7. The administrative professionals who worked on the chapter 11 claim were ordered to disgorge a total of $488,559 in interim administrative payments. The company sought pro rata distribution among the chapter 11 professionals of the disgorged funds.
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Court
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