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southern district of california

In re Pereira

Ruling
Issue of stripping creditor's allegedly wholly unsecured lien had to be handled prior to or during confirmation proceeding.
Procedural posture

The debtors proposed a chapter 13 plan of reorganization that provided for the filing of an adversary proceeding to avoid the allegedly wholly unsecured second trust deed of a bank pursuant to 11 U.S.C.S. § 1322(b)(2). The chapter 13 trustee objected to that provision, arguing that he could not administer the plan until he knew whether the bank was to be treated as a secured or unsecured creditor.

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Consumer opinion summary, case decided on August 25, 2008 , LexisNexis #1208-052

In re Ealy

Ruling
IRS not entitled to relief from stay to setoff debtor's postpetition overpayment and economic stimulus rebate against tax liability.
Procedural posture

After a bankruptcy debtor's chapter 13 plan was confirmed, the Internal Revenue Service (IRS) claimed a right of setoff of the debtor's postpetition tax overpayment and economic stimulus payment against the debtor's tax liability. The IRS moved to modify the automatic bankruptcy stay to permit the setoff.

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Consumer opinion summary, case decided on August 11, 2008 , LexisNexis #0808-132

Lavie v. Ran

Ruling
Bankruptcy court erred in failing to review facts rebutting presumption of debtor's center of main interest in denying chapter 15 recognition.
Procedural posture

Appellant bankruptcy trustee of an Israeli bankruptcy sought judicial review of the bankruptcy court's determination that a debtor's Israeli bankruptcy proceeding was neither a foreign main nor a foreign nonmain proceeding, thereby denying chapter 15 of the Bankruptcy Code recognition of the proceeding.

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Consumer opinion summary, case decided on February 06, 2008 , LexisNexis #0308022

Keenan v. Pyle (In re Keenan)

Ruling
Debtors and attorney sanctioned for filing over 60 unsupported appellate proceedings against trustee and counsel.
Procedural posture

Appellant debtors challenged the Bankruptcy Court for the Southern District of California's award of sanctions against them.

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Consumer opinion summary, case decided on January 30, 2008 , LexisNexis #0208-090

Pacific Capital Bancorp v. Schwass (In re Schwass)

Ruling
Debtor's failure to prepare reaffirmation agreement after filing statement of intention was not grounds for relief from stay.
Procedural posture

Movant bank sought relief from stay under 11 U.S.C. § 362(h), contending that respondent debtor failed to fulfill her obligations under 11 U.S.C. § 521(a)(2)(B) to reaffirm a debt secured by a vehicle.

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Consumer opinion summary, case decided on November 06, 2007 , LexisNexis #1207-111

In re Lasowski

Ruling
Plan confirmed over trustee's objection as court could not require proration of 401(k) loan payments even though loans would be paid off before plan completion.
Procedural posture

A chapter 13 trustee objected to the confirmation of the plan of an above- median debtor. Because the debtor would pay off her 401(k) loan obligations before the completion of the proposed plan, the trustee objected to the debtor claiming a full deduction for the monthly loan payments.

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Consumer opinion summary, case decided on September 14, 2007 , LexisNexis #1007-092

In re Roman Catholic Bishop of San Diego

Ruling
Actions alleging sexual abuse by clergy of debtor diocese remanded to state court.
Procedural posture

Plaintiffs in 42 of the approximately 127 removed child sexual abuse adversary proceedings against defendant chapter 11 debtor filed motions to remand the proceedings to state court pursuant to 28 U.S.C. § 1452(b).

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Commercial opinion summary, case decided on August 24, 2007 , LexisNexis #1007-058

In re Maya

Ruling
Case ordered converted or dismissed where debtors would have disposable income after surrender of property on which payments were claimed in means test.
Procedural posture

The United States Trustee moved to dismiss or convert the debtors'chapter 7 petition pursuant to 11 U.S.C. § 707(b)(2) and as presumptively abusive for failing the means test calculation of their listed expenses, or alternatively under the totality of the circumstances under 11 U.S.C. § 707(b)(3)(B).

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opinion summary, case decided on August 14, 2007 , LexisNexis #0907-117

In re Hill

Ruling
Court declined to dismiss case that debtor could not complete in five years to serve best interests of debtor and creditors.
Procedural posture

Chapter 13 trustee filed motions in two bankruptcy cases to dismiss the cases on the grounds that they had exceeded 60 months in length.

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opinion summary, case decided on August 07, 2007 , LexisNexis #1007-031

In re Fox

Ruling
Filing of form B22A not required upon conversion from chapter 13 to chapter 7.
Procedural posture

After filing a chapter 13 bankruptcy, debtor converted the proceeding to a liquidation under chapter 7 and moved the court for a ruling that "means testing" required by 11 U.S.C. § 707(b) did not apply to cases converted from chapter 13 to chapter 7 and that she therefore was not required to file Official Bankr. Form B22A. The U.S. Trustee participated in the matter and opposed debtor's position.

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opinion summary, case decided on June 01, 2007 , LexisNexis #0807-015