In re Petty
Feb
10
2006
Ruling
Trustee's objection to plan confirmation was overruled since the debtors'proposed charitable contribution did not exceed the cap of 15 percent of the debtors'gross income.
Procedural posture
The chapter 13 trustee objected to confirmation of the debtors'proposed plan. The basis for the trustee's objection was that the debtors have scheduled monthly charitable contributions, in the form of weekly tithes and offerings to his church, while only paying unsecured creditors approximately one percent of their claims over the life of the plan. The trustee also moved for dismissal of the case pursuant to 11 U.S.C. § 1307.
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Court
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- 11 U.S.C.
In re Petty
Feb
10
2006
Ruling
Trustee was denied a dismissal request since the trustee failed to show the debtors filed their plan in bad faith.
Procedural posture
The chapter 13 trustee objected to confirmation of the debtors'proposed plan. The basis for the trustee's objection was that the debtors have scheduled monthly charitable contributions, in the form of weekly tithes and offerings to his church, while only paying unsecured creditors approximately one percent of their claims over the life of the plan. The trustee also moved for dismissal of the case pursuant to 11 U.S.C. § 1307.
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Court
:
- 11 U.S.C.
In re Carmona
Feb
07
2006
Ruling
A trustee and the trustee's counsel were denied fees and costs following the dismissal of a case since they did not exercise reasonable billing judgment in that the fees and costs likely benefitted them and not the estate.
Procedural posture
After the debtor filed a petition for chapter 7 bankruptcy, the trustee filed an application to employ counsel under 11 U.S.C. § 327. The court granted the trustee's motion. Subsequently, the debtor filed a motion to dismiss her case. The court granted the debtor's motion to dismiss and denied payment of fees and costs to the trustee and her counsel. The trustee filed a motion for reconsideration.
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Court
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Concannon v. Imperial Capital Bank (In re Concannon)
Feb
07
2006
Ruling
Appellate panel affirmed ruling that the debtor could not use section 506(d) to remove a creditor's judgment lien and that the lien would pass through the bankruptcy case.
Procedural posture
Appellee creditor sought relief from an automatic stay to foreclose its judgment lien, and appellant debtors defended the motion in their chapter 7 case by seeking a valuation of their rental property encumbered by the lien and avoidance of the creditor's lien pursuant to former 11 U.S.C. § 506(a) and (d). The Bankruptcy Court for the District of Arizona granted the creditor's motion and lifted the stay. Debtors appealed.
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- 11 U.S.C.
Khaligh v. Hadaegh (In re Khaligh)
Feb
02
2006
Ruling
Creditor's arbitration award against the debtor for defamation was deemed nondichargeable since the arbitration satisfied the requirements of an adjudicated finding of willfull and malicious injury.
Procedural posture
Appellee creditor brought an adversary proceeding against appellant bankruptcy debtor alleging that the creditor's arbitration award against the debtor for defamation was not dischargeable based on willful and malicious injury under 11 U.S.C. § 523(a)(6). The debtor appealed the order of the U.S. Bankruptcy Court for the Central District of California which granted summary judgment to the creditor based on issue preclusion.
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- 11 U.S.C.
Gottlieb v. State Compensation Ins. Fund of Cal. (In re Intl Philanthropic Hosp. Found.)
Jan
04
2006
Ruling
Trustee could not avoid a payment to a state workers'compensation insurance fun since the postpetition transfer was approved by a court order, one that the truste e had requested.
Procedural posture
Debtor operated a 155-bed hospital and was in chapter 11. The chapter 11 trustee found that the debtor-in-possession had cut a check to defendant, the state compensation insurance fund, for $172.860.92 for workers'compensation insurance. The case was converted to a chapter 7. The trustee moved for partial summary adjudication, seeking to recover the funds from defendant on the basis that it was an avoidable transfer under 11 U.S.C. § 549.
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Court
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Sallie Mae Servicing Corp. v. Ransom (In re Ransom)
Dec
27
2005
Ruling
Panel rejected that a confirmed plan could preclude a student loan lender from recovering postpetition interest on a student loan debt and thus discharge the interest obligation without conducting an undue hardship hearing.
Procedural posture
Appellant, a student loan lender, sought review of a decision of the bankruptcy court, which determined that appellee debtor was not obligated under the confirmed chapter 13 plan to pay accrued interest charged by the lender as part of her student loan obligation.
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- 11 U.S.C.
Campbell v. Verizon Wireless S-CA (In re Campbell)
Dec
14
2005
Ruling
Debtors'objections to four proofs of claim were rejected since debtors did not contest their liability and since lack of documentation was not sufficient grounds for disallowing the proofs of claim.
Procedural posture
Appellant chapter 13 debtors objected to four proofs of claim. The bankruptcy court sua sponte held prove-up hearings and overruled the objections made under 11 U.S.C. § 502(b)(1) that the proofs of claim lacked required documentation. The debtors appealed.
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- 11 U.S.C.
Kendall v. Turner (In re Turner)
Dec
05
2005
Ruling
Home transfer was deemed an actually and constructively fraudulent transfer where the debtor set up alter ego companies to protect assets and defraud creditors.
Procedural posture
Two adversary proceedings were consolidated for trial. In one action, plaintiff, the chapter 7 trustee, brought a fraudulent transfer action against defendants, debtor's former spouse, et al. In the second action, plaintiffs, two individuals who alleged conduct against debtor in another matter that was found by a jury to be tortious, filed an objection to discharge action. The proceedings were before the court for decision following trial.
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Court
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Kendall v. Turner (In re Turner)
Dec
05
2005
Ruling
Debtor was denied discharge due to the debtor's efforts to defraud creditors by concealing retained interest in the debtor's home.
Procedural posture
Two adversary proceedings were consolidated for trial. In one action, plaintiff, the chapter 7 trustee, brought a fraudulent transfer action against defendants, debtor's former spouse, et al. In the second action, plaintiffs, two individuals who alleged conduct against debtor in another matter that was found by a jury to be tortious, filed an objection to discharge action. The proceedings were before the court for decision following trial.
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Court
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