Judge McManus

In re Barnes

Debtor filed a chapter 7 bankruptcy case. The chapter 7 trustee filed a report of no distribution. The trustee's report was approved without objection. The debtor filed an ex parte motion to reopen her chapter 7 case for the purpose of amending the schedules in order to list previously omitted creditors.
Ruling: 
Debtor allowed to reopen case to allow for adversary proceeding to determine if debts of omitted creditors were or were not nondischargeable.
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Consumer case opionion summary, case decided on March 21,2013, LexisNexis #0713-048

Bensi v. Eshelman (In re Eshelman)

Plaintiff union trust funds filed a complaint challenging defendant debtor's right to discharge a debt arising from unpaid employer contributions and a withdrawal liability in connection with his sole proprietorship's participation as an employer in the trust funds under the Employee Retirement Income Security Act (ERISA) of 1974. The trust funds contended that the debt was nondischargeable under 11 U.S.C.S. § 523(a)(4) and (a)(6).
Ruling: 
Debts for unpaid employer contributions and withdrawal liability was dischargeable as debtor was not a fiduciary and did not exercise control over plan assets.
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Consumer case opionion summary, case decided on March 19,2013, LexisNexis #0713-050

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

Plaintiff chapter 7 debtor filed a complaint against defendant creditor seeking a determination that her student loans were discharged in bankruptcy. The debtor alleged that she overcame the presumption in 11 U.S.C.S. § 523(a)(8) that the loans were nondischargeable because repayment would be an undue hardship.
Ruling: 
Motion for undue hardship discharge of student loan debt denied where incapacitating accident occurred postdischarge.
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Consumer case opionion summary, case decided on January 15,2010, LexisNexis #0510-054

In re Mora

Debtors filed a petition under chapter 13 of the Bankruptcy Code, and a plan for repaying their creditors. A trustee who was appointed to administer the debtors' bankruptcy estate filed an objection to confirmation of the debtors' plan, claiming that it could not be confirmed under 11 U.S.C.S. § 1325(b) because it did not require the debtors pay all their projected disposable income to the trustee to repay debts they owed to unsecured creditors.
Ruling: 
Confirmation denied due to over-withholding of taxes and payments to debtor's adult son which resulted in contribution of less than full disposable income to plan.
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Consumer case opionion summary, case decided on September 04,2009, LexisNexis #0110-125

In re City of Vallejo

A firefighters union moved for a declaration that the automatic stay in the city's chapter 9 bankruptcy case did not prevent the union from pursuing a safety grievance against the city for its unilateral reduction in staffing levels, allegedly in violation of a collective bargaining agreement (CBA).
Ruling: 
Stay in municipal case applied to firefighters' union's safety grievance where hearing on rejection of collective bargaining agreement was pending.
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Commercial case opionion summary, case decided on March 02,2009, LexisNexis #0609-107

In re OccMeds Billing Servs.

Debtor medical billing service moved for an order holding a limited liability company (LLC) in civil contempt of court based on the LLC's continued "sweeps" from a bank account into which the debtor was depositing payments on its account receivables, which receivables secured advances made to it by the LLC. At issue was whether such conduct violated the automatic stay imposed by 11 U.S.C. § 362 and , if so, what remedy was properly awarded.
Ruling: 
LLC's continued "sweeps" of debtor's receivables account were willful violations of stay.
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Commercial case opionion summary, case decided on January 11,2008, LexisNexis #0308002

In re OccMeds Billing Servs.

A bankruptcy debtor in possession, a medical billing company, modified its business model to ease cash flow problems by ceasing to make advance payments to clients in anticipation of insurance proceeds, and by collecting amounts due from insurers or patients only as an agent for the clients. The debtor moved pursuant to 11 U.S.C. § 363(c) to use the cash collateral of a secured creditor.
Ruling: 
Debtor could not use cash collateral to ease cash flow problem where creditor's interest could not be adequately protected.
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Commercial case opionion summary, case decided on December 01,2007, LexisNexis #0108-074

In re Large Scale Biology Corp.

Chapter 11 debtor filed a motion to approve an auction process and the sale and assignment of certain patents and patent applications pursuant to 11 U.S.C. § 363(f) free and clear of all liens, claims, interests, and other encumbrances.
Ruling: 
Free and clear auction of patents and patent applications approved.
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Commercial case opionion summary, case decided on November 14,2007, LexisNexis #0108-116

McGranahan v. Dillard (In re Dillard)

Plaintiff chapter 7 trustee sought to avoid the transfer of a one-half joint tenancy interest in real property by the debtor to defendant transferee, the debtor's former spouse, pursuant to Cal. Civ. Code § 3439.05, 11 U.S.C. § 548(a)(1)(B), or 11 U.S.C. § 547.
Ruling: 
Return of one-half interest in property to former spouse after temporary transfer to debtor for refinancing pursuant to divorce decree was not avoidable.
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Consumer case opionion summary, case decided on October 30,2007, LexisNexis #1207-049

In re Gibson

Creditor, the seller of certain real property to the chapter 12 debtor, moved the court to terminate the automatic stay on the ground that debtor had commenced the chapter 12 case in bad faith, and that creditor was entitled to complete its foreclosure on the real property.
Ruling: 
Real estate agent did not qualify as family farmer and chapter 12 peition was dismissed for bad faith.
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