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District of california

In re Greg James Ventures LLC

Ruling
Chapter 11 plan with ten year term confirmed as reasonable over creditor's objection.
Procedural posture

A creditor filed an objection to confirmation of the debtor's proposed chapter 11 plan.

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Commercial opinion summary, case decided on September 24, 2008 , LexisNexis #1208-048

In re Sutter

Ruling
Denial of homestead exemption reversed and remanded for determination of whether equitable mortgage existed in absence of signed mortgage deed.
Procedural posture

The bankruptcy court sustained an objection, filed by appellee trustee, mortgage purchaser, and mortgage assignee, to appellant chapter 13 debtors'request for a homestead exemption under 11 U.S.C.S. § 522(g). The court also granted the trustee's motion to sell a mortgage interest to the mortgage purchaser. The debtors challenged both orders.

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Consumer opinion summary, case decided on September 23, 2008 , LexisNexis #1008-077

New Cingular Servs. v. Burkhart (In re Wire Comm. Wireless Inc.)

Ruling
Core nature of dispute did not preclude compelling arbitration pursuant to creditor's agreement with debtor.
Procedural posture

Appellant, a claimant in a chapter 7 debtor's bankruptcy case, challenged a decision of the Bankruptcy Court for the Eastern District of California, which denied the claimant's motion to stay appellee trustee's adversary proceeding against it in order to permit completion of an aborted arbitration hearing.

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Commercial opinion summary, case decided on September 16, 2008 , LexisNexis #1108-018

New Cingular Wireless Servs. v. McCormick

Ruling
Bankruptcy court properly approved trustee's settlement of fraudulent transfer action brought by debtor's shareholders.
Procedural posture

Appellant creditor, wireless service supplier 1, challenged a judgment of the U.S. Bankruptcy Court for the Eastern District of California granting a motion pursuant to Fed. R. Bankr. P. 9019(a) filed by the chapter 7 trustee for approval of a compromise of certain claims asserted by appellees, the shareholders of debtor, a wireless service dealer.

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Commercial opinion summary, case decided on September 11, 2008 , LexisNexis #1108-058

AFI Holding Inc. v. Barclay

Ruling
Bankruptcy court erred in finding that investors in debtor's Ponzi scheme did not exchange reasonably equivalent value up to amount invested.
Procedural posture

Appellants, investors in chapter 7 debtor, challenged a decision of the Bankruptcy Court for the Central District of California, which granted appellee chapter 7 trustee summary judgment in an action to avoid transfers the debtor made to the investors prior to the debtor's bankruptcy pursuant to 11 U.S.C.S. § 544(b). The trustee cross-appealed the bankruptcy courts denial of prejudgment interest.

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Commercial opinion summary, case decided on September 04, 2008 , LexisNexis #1108-029

Hurrell v. Barker (In re Barker)

Ruling
Debtors'alleged nondisclosure of defects in house was not basis for nondischargeable debt where purchaser did not sufficiently investigate.
Procedural posture

Plaintiff purchasers of a house from defendant bankruptcy debtors brought an adversary proceeding against the debtors seeking a determination that the purchasers'claim for the cost of repairs to the house was not dischargeable based on fraud and willful and malicious injury under 11 U.S.C.S. § 523(a)(2)(A), (a)(6). The bankruptcy court conducted a trial.

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Consumer opinion summary, case decided on September 03, 2008 , LexisNexis #1208-095

In re Brooks-Hamilton

Ruling
Bankruptcy court reaffirmed six month suspension of attorney for misconduct on remand.
Procedural posture

Upon remand from the U.S. Court of Appeals from the Ninth Circuit, the court reconsidered its order suspending an attorney for his conduct in a bankruptcy case.

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Consumer opinion summary, case decided on September 02, 2008 , LexisNexis #1108-068

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 Harter

Ruling
Trips to Europe and "luxurious" automobile did not give rise to "extravagant lifestyle" that would require bad faith dismissal.
Procedural posture

The United States Trustee (UST) moved to dismiss the debtor's chapter 7 case pursuant to 11 U.S.C.S. § 707(b)(3) alleging bad faith and that the totality of the circumstances demonstrated abuse. The UST contended that the debtor showed an abusive spending pattern before the filing. Her "totality of the circumstances" argument was based primarily on her belief that the debtor could afford to pay his debts.

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Consumer opinion summary, case decided on August 19, 2008 , LexisNexis #0908-121

In re Ryder

Ruling
Debtor in chapter 13 case converted to chapter 7 not required to file Form 22A to avoid dismissal.
Procedural posture

A debtor was ordered to file an Official Bankr. Form 22C, "Statement of Current Monthly Income and Means Test Calculation," a request for an extension of time, or a written request for an order excusing the filing of the form or to have her chapter 7 case dismissed for failure to file the required documents.

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Consumer opinion summary, case decided on August 18, 2008 , LexisNexis #0908-120