Arizona

Elegant Custom Homes Inc. v. Dusharm (In re Elegant Custom Homes Inc.)

Appellants, a debtor corporation and its owners, challenged a judgment of the bankruptcy court, which ruled in favor of appellee creditor on a claim by which she sought to pierce the corporate veil to hold the owners liable for breach of contract.
Ruling: 
Bankruptcy court properly allowed creditor to pierce debtor's corporate veil to reach debtor's owners.
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In re Cunningham

The debtors filed for relief under chapter 13 and listed a lease that they had with the landlord for the operation of a coffee shop. Postpetition, the debtors and the landlord agreed to a second amendment of the lease. When the debtors failed to pay the rent as agreed, the landlord filed a motion to declare rejection of the lease and to order surrender to the landlord.
Ruling: 
Lease deemed rejected despite postpetition amendment where debtor failed to file for assumption prior to deadline.
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In re Chamberlain

After debtor filed a chapter 13 plan, the trustee objected thereto on the ground that the plan did not devote all of debtor's projected disposable income to payments to unsecured creditors as required by 11 U.S.C. § 1325(b)(1)(A). At issue was the propriety of certain calculations affecting debtor's monthly vehicle expenses and the impact on that issue of the "means test" in 11 U.S.C. § 707(b)(2)(A)(ii)(I).
Ruling: 
Debtor entitled to standard IRS ownership expense deduction for motor vehicle owned free and clear.
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In re Corbin

An unsecured creditor objected to confirmation of a debtor's amended chapter 13 plan. The creditor filed a motion to convert the case to chapter 7.
Ruling: 
Confirmation denied as not proposed in good faith due to unnecessarily favorable treatment of secured creditor.
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Reif v. Kaster (In re Reif)

Plaintiff chapter 7 debtor filed an adversary proceeding complaint against defendants, the State of Arizona and a crime victim, seeking a determination of whether a criminal restitution judgment was a nondischargeable debt under 11 U.S.C. § 523(a)(7). The victim filed her own adversary proceeding complaint against the debtor addressing the same issue. The parties filed cross- motions for summary judgment in the consolidated proceedings.
Ruling: 
Criminal restitution judgement payable to victim was nondischargeable.
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In re Bach

The debtors filed motions to reinstate their dismissed chapter 7 cases, to alter the statutory filing fee requirements, and to waive their filing fees.
Ruling: 
Court had no authority to waive fees in case converted to chapter 7 from chapter 11.
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In re Wegscheid

The debtor's chapter 13 plan provided that a creditor's second lien would be treated as a general unsecured claim and discharged upon completion of the plan. The debtor completed all plan payments and obtained a discharge. The debtor then filed a motion to avoid the creditor's lien under 11 U.S.C. §§ 506(a) and 1322(b)(2), and the creditor objected to the motion.
Ruling: 
Wholly unsecured creditor's lien could be stripped off upon plan completion.
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In re Campbell

Chapter 13 debtor claimed that creditor violated state law in enforcing a deed of trust.
Ruling: 
Trustee's sale conducted on petition date could not be avoided where debtor could not prove petition was filed before completion of sale.
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In re Renteria

The bankruptcy court previously entered an order approving the sale of debtors' property (sale order). The debtors appealed and sought a stay of the sale order, but the Bankruptcy Appellate Panel for the Ninth Circuit denied the debtors'request for a stay of the sale order and the property was sold. The issue was whether the court had jurisdiction to issue any further orders regarding claims to the sale proceeds from the property.
Ruling: 
Bankrutpcy court lacked jurisdiction to reconsider sale order where debtors had no protectable interest in property and sale had taken place.
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In re Greene

In each of eight chapter 13 cases, the chapter 13 trustee filed "conditional objections to exemptions." The plans in each of the cases were confirmed. The issue was the legal effect of the confirmed chapter 13 cases upon the unresolved objections to exemptions.
Ruling: 
Plan confirmation was binding on trustee who had filed but never acted upon "conditional objections" to debtors'objections.
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