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Arizona

Lees v. Lees (In re Lees)

Plaintiff, defendant debtor's former spouse, filed an adversary proceeding seeking a determination that the debts owed her were nondischargeable pursuant to 11 U.S.C.S. § 523(a)(15). At issue was the allocation of a state-court award for attorney fees in a divorce proceeding between pre- and post-petition periods. Further at issue was whether the portion of the fees awarded for the debtor's prepetition conduct was non-dischargeable.
Ruling: 
Attorneys' fees awarded in divorce decree but which state court indicated were not in the nature of support were dischargeable.
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Consumer case opionion summary, case decided on January 23,2008, LexisNexis #0208-137

Rodriguez v. Arizona (In re Rodriguez)

In May 1995, plaintiff debtors petitioned for relief under chapter 13 of the United States Bankruptcy Code. After that case was dismissed, the debtors filed their current petition in July 2003. In an adversary proceeding against defendant, the State of Arizona, the debtors claimed that execution of a forfeiture order on the debtors' property violated the automatic stay. The parties filed for cross motions for summary judgment.
Ruling: 
In rem forfeiture was subject to stay and no exceptions were applicable.
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Consumer case opionion summary, case decided on January 18,2008, LexisNexis #0208-131

Marinkovic v. Sanders (In re Marinkovic)

A chapter 11 claimed entitlement to one-half of the proceeds from the sale of his marital home, either as property that was not property of the bankruptcy estate or under California's homestead exemption statutes. The debtor's son claimed a lien against the proceeds.
Ruling: 
Proceeds of sale of marital home that had been conveyed to trust were property of the estate.
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Consumer case opionion summary, case decided on December 05,2007, LexisNexis #0108-064

Ertel v. Educational Credit Mgmt. Corp. (In re Ertel)

Plaintiff debtor filed an adversary proceeding against defendant creditor to determine the dischargeability of certain student loan obligations pursuant to 11 U.S.C. § 523(a)(8).
Ruling: 
Debtor who had worked at minimum wage for fourteen years granted undue hardship discharge of student loan debt.
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Consumer case opionion summary, case decided on November 29,2007, LexisNexis #0108-097

In re CardSystems Solutions Inc.

Debtor, a credit card transaction processor, was a debtor in possession ("DIP"). It filed a motion seeking confirmation for its proposed chapter 11 liquidation plan.
Ruling: 
Confirmation denied due to improper creditor classifications and channeling injunction.
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Commercial case opionion summary, case decided on November 19,2007, LexisNexis #0108-014

In re Brei

A bank objected to confirmation of a debtor's proposed chapter 13 plan under 11 U.S.C. § 1325(a).
Ruling: 
Cramdown of purchase money motor vehicle loan on "910" vehicle prevented by operation of hanging paragraph.
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Consumer case opionion summary, case decided on November 14,2007, LexisNexis #1207-089

In re College Props. Ltd. Pship

The attorney for the chapter 11 trustee filed his third fee application, seeking approval of $105,226.00 in fees and $6,849.63 in costs, pursuant to 11 U.S.C. § 330. Limited partners of the debtor limited partnership filed objections. At issue was whether the fees, almost entirely incurred in the defense of certain limited partners' appeal, should be payable from the amounts set aside for distributions to those objectors.
Ruling: 
Fees incurred in defense of limited partners'appeal of global settlement agreement ordered paid from funds set aside from those partners.
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Commercial case opionion summary, case decided on November 13,2007, LexisNexis #1207-096

In re King

Following the confirmation of debtors'chapter 13 plan, a creditor filed a motion for an award of garnished funds, seeking to reduce the garnishments to judgment against the debtors and to reduce to judgments his claims to the stock in the debtors'former law firm.
Ruling: 
Prepetition collection proceedings nullified by confirmed plan.
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Consumer case opionion summary, case decided on November 13,2007, LexisNexis #1207-092

In re Turner-Dunn Homes Inc.

Debtor corporation filed a petition under chapter 11, and a trustee was appointed to represent the bankruptcy estate. The trustee sold property belonging to the debtor for $29 million, and he filed a motion seeking the court's permission to collect a surcharge in the amount of $895,000 against secured creditors, pursuant to 11 U.S.C. § 506(c). The creditors filed objections to the trustee's motion.
Ruling: 
Trustee allowed 3% surcharge for services in selling debtor's property for $29 million.
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Commercial case opionion summary, case decided on November 01,2007, LexisNexis #1207-042

In re McLaughlin

The debtors filed a motion for citation of contempt and for the assessment of sanctions against a creditor for willfully violating the automatic stay in violation of 11 U.S.C. § 362(k).
Ruling: 
Creditor sanctioned for calling and harassing debtors in willful violation of stay.
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Consumer case opionion summary, case decided on October 30,2007, LexisNexis #1207-112

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