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In re Stansell

Ruling
Length of chapter 13 debtor's commitment period would depend on prepetition contributions by debtor's spouse who died one month prior to petition date.
Procedural posture

A debtor filed for relief under chapter 13 of the Bankruptcy Code about one month after his wife passed away. The debtor proposed a plan for three years, based on his income. The trustee objected to the plan, claiming that under 11 U.S.C.S. § 1325, the debtor was required to include his deceased spouse's income and was thus required to propose a plan for five years.

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Consumer opinion summary, case decided on October 16, 2008 , LexisNexis #1208-055

In re Irving

Ruling
Case ordered dismissed if debtor did not produce evidence to support confirmation of plan where good faith was at issue.
Procedural posture

The debtor filed for relief under chapter 13 of the United States Bankruptcy Code and submitted a proposed plan. A chapter 13 trustee filed a motion to dismiss the case, pursuant to 11 U.S.C.S. § 1307(c). The court issued findings of fact and conclusions of law.

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Consumer opinion summary, case decided on September 08, 2008 , LexisNexis #1008-047

In re Courtney

Ruling
Motion to approve settlement of preference proceeding denied where trustee would likely succeed on the merits to the greater benefit of the estate.
Procedural posture

The debtors filed for relief under chapter 7 of the Bankruptcy Code. A chapter 7 trustee sought approval to compromise a preferential transfer proceeding that the trustee had brought against a credit card company.

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Consumer opinion summary, case decided on September 03, 2008 , LexisNexis #1008-045

In re Taylor

Ruling
Guarantees were noncontingent liquidated debts causing debtor to exceed chapter 13 limits.
Procedural posture

Debtors filed a petition under chapter 13 of the Bankruptcy Code, and a trustee was appointed to represent the bankruptcy estate. The trustee filed a motion to dismiss the debtors' case, claiming that the debtors were not eligible for Chapter 13 relief because their noncontingent, liquidated debts exceeded the debt limits allowed by 11 U.S.C.S. § 109(e).

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Consumer opinion summary, case decided on July 25, 2008 , LexisNexis #1008-002

In re Kahl

Ruling
Conversion to chapter 11 approved based on potential return to creditors despite incomplete schedules and disclosures.
Procedural posture

A debtor originally filed for relief under chapter 7 of the Bankruptcy Code, and filed a motion to convert the case to a chapter 13 proceeding. A chapter 7 trustee objected to the proposed conversion because the trustee contended that the debtor had failed to disclose important information in the schedules that he filed.

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Consumer opinion summary, case decided on July 24, 2008 , LexisNexis #1008-004

Krommenhoek v. Bankruptcy Estate of Pfankuch Food Servs. Inc. (In re Pfankuch)

Ruling
Avoidable past due rent was properly turned over to estate of chapter 13 parent company that made payment on behalf of chapter 7 lessee.
Procedural posture

Plaintiff chapter 13 trustee and defendant chapter 7 trustee each filed motions for summary judgment in the chapter 13 trustee's action, seeking to obtain a declaratory judgment that monies paid by a lessor to the chapter 7 trustee constituted property of the chapter 13 bankruptcy estate, and not that of the chapter 7 bankruptcy estate, and requiring that the chapter 7 trustee turn over those funds to the chapter 13 trustee.

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Consumer opinion summary, case decided on July 15, 2008 , LexisNexis #1208-118

In re Valley Club Homes LLC

Ruling
Creditor could not compel assumption or rejection where contract was not executory as creditor had completed performance.
Procedural posture

Creditor filed a motion to compel the debtor to assume or reject an executory contract. The debtor was a home builder which contracted with the creditor to use the creditor's existing water delivery system as a means to deliver water to its various building lots.

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Commercial opinion summary, case decided on July 15, 2008 , LexisNexis #1208-110

Carlson-Callow v. Sallie Mae Servicing (In re Carlson-Callow)

Ruling
Partial discharge of student loan debt granted.
Procedural posture

Chapter 7 debtor contended that excepting her student loans in the amount of approximately $ 89,000 from discharge in her bankruptcy case would subject her to undue hardship, within the meaning of 11 U.S.C.S. § 523(a)(8). Defendant student loan creditor opposed the request.

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Consumer opinion summary, case decided on June 06, 2008 , LexisNexis #0708-101

In re Dales Serv. Inc.

Ruling
Prepetition attorneys' fees owed by debtor who ultimately proceeded pro se were dischargeable where attorney did not object to plan confirmation.
Procedural posture

A debtor filed for relief under chapter 11 of the Bankruptcy Code, initially without representation from an attorney. The attorney subsequently filed an application for allowance of attorney's fees and a motion for a limited order authorizing employment for the period from August 22, 2007 through September 18, 2007. The United States Trustee objected to the application and the motion.

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Commercial opinion summary, case decided on May 27, 2008 , LexisNexis #0808-023

Rainsdon v. Farson (In re Farson)

Ruling
Transfers within one year of petition outside of 98 day preference period to creditor who later married debtor were not avoidable due to difficulty of establishing when creditor achieved "insider" status.
Procedural posture

Plaintiff bankruptcy trustee brought an adversary proceeding against defendants, the bankruptcy debtor and a creditor who was now the debtor's spouse, alleging that payments from the debtor to the creditor for a vehicle were preferential under 11 U.S.C.S. § 547(b), that the debtor improperly claimed an exemption in the vehicle.

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Consumer opinion summary, case decided on April 03, 2008 , LexisNexis #0508-066