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northern district of california

Brady v. Bestworth-Rommel Inc. (In re Johnson)

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.
Procedural posture

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).

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opinion summary, case decided on November 25, 2006 , LexisNexis #0107-063

In re Resto-Perez

Ruling
Automatic stay continued where debtors'second chapter 13 case was filed in good faith, met payment requirements and circumstances had changed in debtors'favor.
Procedural posture

The chapter 13 debtors filed a motion for continuation of the automatic stay, pursuant to 11 U.S.C. § 362(c)(3).

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opinion summary, case decided on November 20, 2006 , LexisNexis #0307-005

Scott v. Scott (In re Scott)

Ruling
Discharge denied on objection from debtor's creditor brother due to debtor's conversion of assets to cash which constituted concealment and failure to account for funds.
Procedural posture

Plaintiff brother objected to the discharge of defendant debtor, pursuant to 11 U.S.C. § 727(a)(5) and (2)(A).

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opinion summary, case decided on November 16, 2006 , LexisNexis #0107-099

In re Thomas

Ruling
Denial of parking permit and vehicle registration due to unpaid prepetition parking citations was within police powers exception to stay.
Procedural posture

Appellant, a chapter 13 debtor, sought review of an order from the bankruptcy court denying his motion for damages against appellees, a City's department of parking and traffic, the California Department of Motor Vehicles ("DMV"), and the California Franchise Tax Board ("FTB"), for alleged violations of the automatic stay under 11 U.S.C. § 362.

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opinion summary, case decided on November 13, 2006 , LexisNexis #0107-010

In re Pora

Ruling
Plan confirmation denied due to discrimination between student loan creditor and other unsecured creditors.
Procedural posture

A bankruptcy debtor proposed a plan which provided a minimal dividend to unsecured creditors but treated student loan debt as long-term debt under 11 U.S.C. § 1322(b)(5), which received a substantially greater dividend. The trustee objected to confirmation of the plan on the ground that it discriminated between unsecured creditors in violation of section 1322(b)(1).

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opinion summary, case decided on October 17, 2006 , LexisNexis #0307-034

In re Legacy Estate Group LLC

Ruling
Conversion to chapter 7 denied where confirmation of plan was likely and would result in possible full dividend to creditors.
Procedural posture

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.

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opinion summary, case decided on October 09, 2006 , LexisNexis #1106-043

Tranche 1 (SVP-AMC) Inc. v. Relito Tan (In re Relito Tan)

Ruling
Denial of discharge granted on remand after evidentiary hearing established debtor's fraud.
Procedural posture

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.

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opinion summary, case decided on October 03, 2006 , LexisNexis #1106-128

Para v. Para (In re Para)

Ruling
Debt to former spouse discharged where former spouse had paid country club dues rather than support payments owed to debtor.
Procedural posture

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.

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opinion summary, case decided on September 26, 2006 , LexisNexis #1206-026

Brooks-Hamilton v. City of Oakland (In re Brooks-Hamilton)

Ruling
Postpetition recording of deeds from debtor to prepetition irrevocable trust was avoidable.
Procedural posture

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.

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opinion summary, case decided on August 25, 2006 , LexisNexis #1006-099

Doolittle v. County of Santa Cruz (In re Metzger)

Ruling
Sale order issued without proper notice to county did not strip county of its interest.
Procedural posture

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.

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opinion summary, case decided on August 02, 2006 , LexisNexis #0906-051