Judge Tchaikovsky

Qmect Inc. v. Burlingame Capital Partners II LP (In re Qmect Inc.)

Defendant moved for an award of postpetition attorneys'fees as part of its judgment in adversary proceedings filed by plaintiff debtors. At the time, Ninth Circuit precedent (the Fobian case) held that attorneys'fees were not recoverable for litigating issues peculiar to bankruptcy law. In its Travelers decision, the Supreme Court overruled the Fobian case. Following briefing, the bankruptcy court issued its ruling on defendant's motion.
Ruling: 
Creditor held a valid claim for postpetition attorneys'fees incurred in defending adversary proceeding.
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In re Withers

A chapter 7 bankruptcy debtor failed to obtain credit counseling as required under 11 U.S.C. § 109(h) to be eligible as a debtor in bankruptcy and failed to file documents required by 11 U.S.C. § 521(a)(1)(B). The bankruptcy court denied the trustee's motion for an order to show cause why the debtor should not be held in contempt for disobeying a court order, pending consideration of whether dismissal of the case was warranted or required.
Ruling: 
Failure to obtain credit counseling did not require immediate dismissal.
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In re Keppert

The attorney who represented two bankruptcy debtors filed an application with the court seeking an award of $21,977.10 in attorneys'fees and $136.74 in costs for his representation of the debtors. The case was originally filed under chapter 7, it was later converted to a chapter 13 case, and it was changed back into a chapter 7 case in 2006. Both of the debtors died while the bankruptcy proceedings were pending.
Ruling: 
Attorneys' fee application denied due to inadequate notice to creditors and illegible time records.
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In re Qmeet Inc.

An interim trustee was appointed in debtor's bankruptcy case. At a continued meeting of creditors, the election of a permanent trustee was requested under 11 U.S.C. § 702. The validity of the election was contested. The U.S. Trustee filed a report of a disputed election of a chapter 7 trustee. An motion to confirm the election was filed by an administrative creditor. The motion was opposed by the interim trustee and an equity holder in debtor.
Ruling: 
Confirmation of election of permanent trustee denied as not requested by creditors holding sufficient amount of claims.
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Kendall v. Carbatt (In re Carbatt)

Chapter 7 trustee sought to avoid the prepetition transfer by debtor to defendant ex-wife of his interest in their family home and in an unsecured promissory note pursuant to 11 U.S.C. §§ 548(a) and 544(b). He also sought to recover the transfers or their value from the wife pursuant to 11 U.S.C. § 550(a)(1) and , with respect to his interest in the house, from defendant, the wife's mother, as a subsequent transferee pursuant to section 550(a)(2).
Ruling: 
Transfer of marital home to former spouse for reasonably equivalent value was not avoidable nor was subsequent transfer from former spouse to her mother.
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In re Pak

A debtor sought confirmation of his amended chapter 13 plan, but the trustee and an unsecured creditor objected to the confirmation. The debtor contended that the plan should be confirmed because the payments constituted more than his "projected disposable income" under 11 U.S.C. § 1325(b)(1)(B).
Ruling: 
Confirmation denied due to debtor's failure to commit all projected disposable income to plan.
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In re Gutierrez

Chapter 7 debtor filed a motion, seeking an order compelling his former bankruptcy attorney to disgorge pursuant to 11 U.S.C. § 526(c) all monies received in connection with his representation of debtor.
Ruling: 
Debtor's former attorney ordered to disgorge fees due to failure to comply with BAPCPA provisions for Bankruptcy Truthfulness Notice or fee agreements.
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Brady v. Bestworth-Rommel Inc. (In re Johnson)

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditor seeking to avoid an alleged transfer from the debtor pursuant to 11 U.S.C. § 548(a)(2) and to recover the amount of the transfer pursuant to 11 U.S.C. § 550(a) or (b).
Ruling: 
Creditor who released lien on land owned by corporation of which debtor was a shareholder in exchange for transfer by debtor was a subsequent transferee and transfer was not avoidable.
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Tranche 1 (SVP-AMC) Inc. v. Relito Tan (In re Relito Tan)

Plaintiff bank brought an adversary proceeding against defendant chapter 7 debtor, seeking denial of the debtor's bankruptcy discharge pursuant to 11 U.S.C. § 727(a)(2), (a)(3) and (a)(4)(A). The Ninth Circuit reversed the grant of summary judgment to the bank, concluding that an evidentiary hearing was required with respect to the debtor's intent. On remand, the bankruptcy court held a hearing.
Ruling: 
Denial of discharge granted on remand after evidentiary hearing established debtor's fraud.
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Para v. Para (In re Para)

Plaintiff former spouse brought an adversary proceeding against defendant debtor pursuant to 11 U.S.C. § 523(a)(15), seeking a judgment of nondischargeability as to two obligations imposed on the debtor in a divorce proceeding. The parties filed cross-motions for summary judgment with respect to this claim. The court held a hearing on the motions.
Ruling: 
Debt to former spouse discharged where former spouse had paid country club dues rather than support payments owed to debtor.
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