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southern district of california

Islinger v. Hillisheim

Ruling
State court default judgment in breach of contract case did not establish nondischargeability.
Procedural posture

Homeowners sued debtor, the owner of a construction company retained to build plaintiffs' new home, for a judgment that a debt arising by reason of a breach of the parties' construction contract was nondischargeable under 11 U.S.C.S. § 523(a)(2) and /or § 523(a)(4). That obligation was represented by a state court default judgment for $723,475 in damages. Debtor also failed to defend the adversary proceeding.

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Consumer opinion summary, case decided on April 06, 2011 , LexisNexis #0511-075

Silverstein v. Wachovia Mortg. Corp.

Ruling
Debtor had standing to assert fair debt collection practices claim that was sufficiently set forth in schedules.
Procedural posture

Plaintiffs, a Chapter 11 debtor and his spouse, sued defendant mortgage lender in California state court. Following removal, plaintiffs filed an amended complaint alleging violations of California Civ. Code § 1788 et seq. and the Rosenthal Fair Debt Collection Practices Act (RFDCPA), invasion of privacy, tort in se, and libel. The lender moved to dismiss or for a more definite statement.

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Consumer opinion summary, case decided on February 07, 2011 , LexisNexis #0811-048

In re Orozco

Ruling
Bankruptcy court denied reconsideration of waiver of filing fee.
Procedural posture

In this chapter 7 case, the chapter 7 trustee filed a motion to reconsider the court's waiver of the chapter 7 filing fee for the debtor.

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Consumer opinion summary, case decided on November 15, 2010 , LexisNexis #1210-135

In re Penta Water Co.

Ruling
Plan including establishment of administrative reserve confirmed..
Procedural posture

The debtor and debtor in possession, and the official committee of unsecured creditors jointly filed a chapter 11 plan of reorganization, which came on for hearing under Fed. R. Bankr. P. 3020(b)(2).

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Commercial opinion summary, case decided on August 30, 2010 , LexisNexis #0111-067

In re BI-LO LLC

Ruling
Relief from stay to allow trustee in one debtor's case to pursue claims against related debtor with confirmed plan denied except as to equitable subordination.
Procedural posture

A liquidating trustee in a separate bankruptcy case moved for relief from the automatic bankruptcy stay in debtors' bankruptcy case for cause under 11 U.S.C.S. § 362(d) to allow the trustee to liquidate claims against the debtors in the trustee's case rather than the debtors' case.

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Commercial opinion summary, case decided on August 13, 2010 , LexisNexis #0910-008

Helena Chemical Co. v. Richmond (In re Richmond)

Ruling
Discharge denied due to debtor's misrepresentations, false oaths and concealment of assets.
Procedural posture

Creditor brought an adversary proceeding against bankruptcy debtor seeking determinations that a debt to the creditor was nondischargeable under 11 U.S.C.S. § 523 and that the debtor should be denied a discharge under 11 U.S.C.S. § 727 based on the debtor's false pretenses, misrepresentations, and willful and malicious injury.

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Consumer opinion summary, case decided on June 08, 2010 , LexisNexis #0810-059

Sneed v. Hartsfield (In re Hartsfield)

Ruling
State court judgment of fiduciary defalcation was nondischargeable.
Procedural posture

Plaintiff, a successor trustee and the personal representative of a decedent's estate, filed an adversary proceeding against chapter 11 debtor, objecting to exemptions the debtor claimed and seeking a determination that the debtor owed two debts that were nondischargeable under 11 U.S.C.S. § 523(a)(4) because he committed fraud or defalcation while acting in a fiduciary capacity. The case was tried to the court.

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Consumer opinion summary, case decided on June 03, 2010 , LexisNexis #0810-052

In re Alvarez

Ruling
Creditor ordered to turn over vehicle repossessed after stay terminated in debtor's second bankruptcy with respect to debtor only.
Procedural posture

A prior case of a bankruptcy debtor was dismissed and, after more than 30 days elapsed in the debtor's subsequent bankruptcy case, a creditor repossessed the debtor's vehicle based on the termination of the automatic bankruptcy stay under 11 U.S.C.S. § 362(c)(3)(A). The debtor moved for turnover of the vehicle, and the creditor moved for an order confirming termination of the stay.

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Consumer opinion summary, case decided on May 11, 2010 , LexisNexis #0710-078

In re Burnett

Ruling
Completion of chapter 13 plan to discharge was not a requirement for stripping junior lien.
Procedural posture

The chapter 13 trustee and the debtor's counsel disagreed over the terms to be included in the debtor's confirmation order. The debtor argued she was not required to complete the plan and obtain a discharge to be allowed to strip off a junior trust deed lien.

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Consumer opinion summary, case decided on April 02, 2010 , LexisNexis #0610-131

In re Grant

Ruling
Debtor could not seek to strip lien as wholly unsecured while also claiming it as secured in deducting payments contractually due.
Procedural posture

A chapter 13 trustee objected to confirmation of a plan in which the debtor claimed a junior lien to be wholly unsecured for lien stripping purposes under 11 U.S.C.S. § 1322(b) while also claiming it as a secured debt for purposes of deducting payments contractually due under 11 U.S.C.S. § 707.

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Consumer opinion summary, case decided on January 26, 2010 , LexisNexis #0310-133