In re Zamani
Apr
07
2008
Ruling
Creditor not entitled to default rate of interest where not specified in original contract.
Procedural posture
The debtor proposed a plan of reorganization that would cure or pay off three promissory notes held by the secured creditor bank. Because the debt to the creditor was over- secured, it is entitled to recover interest on its claims under 11 U.S.C.S. § 1124(2). The parties disagreed, however, whether the bank was entitled to recover interest at default rate under its agreements with the debtor, or must be satisfied with interest at the basic rate.
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Court
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In re Johnson
Mar
18
2008
Ruling
Case dismissed for fraud due to debtor's failure to schedule large claim.
Procedural posture
After the court found, in a related adversary proceeding, that debtor, a husband who was later divorced from his wife, with whom he had filed a bankruptcy, had obtained confirmation of a chapter 13 plan through a fraud on the court and vacated the confirmation order, it issued an order to show cause why the husband's case should not be dismissed with prejudice on account thereof.
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Court
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In re McKinney
Mar
03
2008
Ruling
Trustee not allowed maximum compensation where substantially disporportionate to value of serviced performed.
Procedural posture
A debtor objected to the chapter 7 trustee's application for the maximum compensation permitted under 11 U.S.C.S. § 326(a) on the ground that the fees were disproportionate to the work required.
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Court
:
- 11 U.S.C.
Ghomeshi v. Sabban (In re Sabban)
Feb
20
2008
Ruling
State court penalty based on debtor's violation of home improvement contractor licensing statute was nondischargeable although award of damages in the nature of disgorgement was not.
Procedural posture
Appellant creditor sought review of an order of the United States Bankruptcy Court for the Central District of California, that determined that an award of $ 123,500 under a state court judgment based on Cal. Bus. & Prof. Code §§ 7031 and 7160 was dischargeable. The debtor was a contractor who had falsely represented to the creditor that he was licensed. The issue was whether the debt was nondischargeable under 11 U.S.C.S. § 523(a)(2)(A).
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Court
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Judge or Jurisdiction information not available
In re Rodrigues
Feb
11
2008
Ruling
Inclusion of mortgage payments on property intended for surrender in means test calculation is not grounds for abuse dismissal.
Procedural posture
Movant, the U.S. Trustee, sought dismissal of a chapter 7 case pursuant to 11 U.S.C.S. § 707(b)(1) as presumptively abusive under § 707(b)(2) and as an abuse under the totality of circumstances per § 707(b)(3). At issue was whether, under the test for presumptive abuse, debtors' mortgage obligations on the date of filing were to be included in the "means test calculation" even though debtors intended to surrender the home to the lienholders.
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Court
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Church at San Francisco Where Jesus is Lord v. Winston (In re Church at San Francisco Where Jesus is Lord)
Feb
05
2008
Ruling
Bankruptcy court lacked subject matter jurisdiction over post-dismissal adversay proceeding concerning postpetition conduct of third parties.
Procedural posture
After debtor's voluntary chapter 11 proceeding was dismissed on the request of the parties, debtor filed an adversary proceeding against certain persons who were involved with property that was a part of the bankruptcy estate. At issue was whether the court had subject matter jurisdiction per 11 U.S.C.S. § 1334(b) over the adversary complaint and whether it ought to grant debtor's ex parte application for a temporary restraining order (TRO).
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Court
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In re Mitchell
Jan
18
2008
Ruling
Real estate brokerage firm could be retained to market estate commercial property despite principal's conections with bank holding deed of trust.
Procedural posture
The chapter 7 Trustee applied to hire a real estate brokerage firm to market estate commercial real property. The United States Trustee objected, arguing that the firm was disqualified from acting for the estate because one of its principals owned stock in the parent company of the bank which held the first deed of trust on the property and also sat on the board of directors of that company. This connection was disclosed in the application.
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Court
:
- 11 U.S.C.
Bay Area Diamond Wholesalers Inc. v. Polinski (In re Polinski)
Jan
15
2008
Ruling
Discharge denied due to debtor's failure to account for disappearance of precious gems.
Procedural posture
Plaintiff creditor filed a complaint against defendant debtor to deny the debtor his discharge under 11 U.S.C. § 727. The creditor alleged three grounds for denying the discharge: (1) that the debtor transferred title of his home to his wife with the intent to hinder, delay or defraud a creditor; (2) that he failed to keep or preserve adequate business records: and (3) that he failed to satisfactorily explain the disappearance of assets.
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Court
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Locke v. Old Crocker Inn Road LLC (In Levy)
Dec
19
2007
Ruling
Transfer from debtors'trust to LLC for no consideration was fraudulent.
Procedural posture
Plaintiff trustee filed an adversary proceeding seeking avoidance of the transfer of funds by the debtors from their trust to defendant limited liability company ("LLC") as a fraudulent transfer, a declaration that the bankruptcy estate had equitable ownership of their property, and a judgment that the LLC be wound up and liquidated.
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Court
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In re Ng
Dec
13
2007
Ruling
Sale free and clear of debtor's interests extinguished all remaining rights in property.
Procedural posture
Before the court was a motion for a stay pending appeal of the court's September 28, 2007 order requiring that a person who had interests in a certain real property (movant) turn over possession of the real property.
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Court
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