Northern District

In re Legacy Estate Group LLC

A creditor filed a motion, pursuant to 11 U.S.C. § 1112(b)(1), to convert a debtor's chapter 11 bankruptcy case to chapter 7, which motion was opposed by all the other constituencies.
Ruling: 
Conversion to chapter 7 denied where confirmation of plan was likely and would result in possible full dividend to creditors.
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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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Brooks-Hamilton v. City of Oakland (In re Brooks-Hamilton)

Plaintiff debtor brought an adversary proceeding against defendant trustee in bankruptcy, and the trustee filed cross-claims. At issue was whether the debtor effectively transferred certain real property to an irrevocable trust prior to filing for bankruptcy, so that it was not property of the bankruptcy estate and could not effectively be sold by the trustee. The trustee moved for summary judgment and to dismiss the claims.
Ruling: 
Postpetition recording of deeds from debtor to prepetition irrevocable trust was avoidable.
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Doolittle v. County of Santa Cruz (In re Metzger)

Plaintiff property owner sued defendants, a county, debtor, a development company, et al. The county and the State of California cross-complained. The owner sought a declaration that a 1992 Sale Order divested the property of the county's interest. The county sought a declaration that the Sale Order did not divest the property of its interest and an order remanding the matter to state court. Pending were cross-motions for summary judgment.
Ruling: 
Sale order issued without proper notice to county did not strip county of its interest.
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In re Bricksin

After the debtors filed for bankruptcy protection under chapter 7, the U.S. trustee moved to dismiss their case pursuant to 11 U.S.C. §§ 707(a), 109(h) and 521(b) and Fed. R. Bankr. P., Interim R. 1007(b)(3). The trustee asserted that the debtors failed to file certificates from an approved credit counseling agency evidencing their receipt of credit counseling within the 180-day period preceding the date of filing the petition
Ruling: 
Motion to dismiss case was denied since debtors' participation in debt repayment plan constitued ongoing credit counseling sufficient to satisfy 180-day prior to filing credit counseling requirement.
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In re Nelson

In a prior proceeding, the bankruptcy court summarily ruled that the debtor's proposed chapter 13 plan was filed in bad faith and dismissed the case. The Bankruptcy Appellate Panel for the Ninth Circuit reversed the decision and remanded the case, holding that the bankruptcy court should have permitted the debtor to amend her plan before dismissing the case.
Ruling: 
Debtor was not eligible for chapter 13 relief since debtor filed plan in bad faith.
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Pleasure Cove Resort Asset Mgmt. Group LLC v. United States (In re Pleasure Cove Resort Asset Mgmt. Group LLC)

Defendant U.S. Bureau of Reclamation filed a motion to dismiss plaintiff debtor's adversary proceeding, which sought to obtain resort property seized by the bureau or compensation for the seizure.
Ruling: 
Court abstained from hearing proceeding since no significant bankruptcy issues were involved.
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In re Barrantes

Debtor filed a voluntary petition under chapter 13. Concurrently with the filing of the petition, debtor submitted a proposed chapter 13 plan. Creditor filed objections to confirmation of the plan.
Ruling: 
Creditor's objection to plan confirmation was overruled since proposed plan properly applied all of debtor's projected disposable income.
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Lam v. Conrad (Lam)

Plaintiff, the debtor's former spouse, filed an adversary proceeding against defendant debtor seeking a determination that certain claims arising from their dissolution proceeding were nondischargeable pursuant to 11 U.S.C. § 523(a)(4) and 11 U.S.C. § 523(a)(15). The former spouse moved for partial summary judgment with respect to her claim under 11 U.S.C. § 523(a)(4).
Ruling: 
Court denied former spouse's motion for partial summary judgment on nondischargeability claim.
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