Montana

Sterling v. Southlake Nautilus Health & Raquet Club Inc. (In re Sterling)

Chapter 7 debtor filed an adversary proceeding against defendants, a health and racquet club, a law firm, and an attorney, claiming that defendants violated the injunction that was imposed pursuant to 11 U.S.C.S. § 524(a)(2) by continuing collection activities against her with respect to a pre-petition debt that was discharged in bankruptcy. The law firm and the attorney filed a motion to dismiss.
Ruling: 
Use of adversary proceeding for finding of violation of discharge injunction was improper.
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Consumer case opionion summary, case decided on January 31,2013, LexisNexis #0313-093

In re B.Y.O.B. Inc.

A chapter 7 trustee objected to a proof of claim filed by the estate of a debtor corporation's owner because the amount claimed was overstated and unsupported by documentation. She objected to a family's proof of claim for lack of documentation, because there was no showing that the amount claimed was paid to the debtor or was not a capital contribution, and because the claim was barred by statutes of limitation, the statute of fraud, and usury.
Ruling: 
Trustee's objection to proof of claim for lack of documentation sustained.
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Commercial case opionion summary, case decided on January 15,2013, LexisNexis #0213-009

In re Tipton

A chapter 13 debtor objected to a proof of claim, contending that it did not comply with Fed. R. Bankr. P. 3001 and Bankr. D. Mont. R. 3001(c)(1) and should be disallowed because the creditor did not provide copies of the transfer documents to show chain of title and establish that the rights to said note and deed of trust were transferred to the creditor.
Ruling: 
Objection to proof of claim for alleged improper documentation overruled.
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Consumer case opionion summary, case decided on January 11,2013, LexisNexis #0213-033

In re Kohlruss

Pending in this chapter 7 bankruptcy case was the Trustee's Application for Final Compensation of Attorney and Reimbursement of Expenses, which requested an award of attorney fees in the amount of $5,130 plus reimbursement of expenses in the amount of $81.01. An objection was filed by creditor and debtor's former spouse on the grounds the attorney was requesting professional fees for travel and performing trustee tasks.
Ruling: 
Trustee's attorneys' fee application approved with reduction for services that properly should have been performed by trustee.
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Consumer case opionion summary, case decided on January 02,2013, LexisNexis #0113-073

Blixseth v. Kirschner (In re Yellowstone Mt. Club LLC)

Liquidating trustee filed a motion for amendment to, and entry of, a final judgment against plaintiff-in-intervention.
Ruling: 
Intervenor implicitly consented to bankruptcy court jurisdiction.
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Commercial case opionion summary, case decided on December 05,2012, LexisNexis #1212-134

In re Stampley

In tandem with a motion to confirm a chapter 13 plan, debtor objected to his ex-wife's Proof of Claim (POC) and sought orders voiding the related judicial lien per 11 U.S.C.S. § 522(f)(1) on the basis that it impaired the homestead exemption claimed per Mont. Code Ann. § 70-32-201. The ex-wife objected to confirmation on claims that payment of her claim was required by 11 U.S.C.S. § 1322(a)(2), 11 U.S.C.S. § 507(a)(1) or 11 U.S.C.S. § 1325(a)(5).
Ruling: 
Lien claim based on judgment of dissolution allowed over debtor's objection.
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Consumer case opionion summary, case decided on November 13,2012, LexisNexis #1212-029

Walschmidt v. Bank of Am. (In re Wheeler)

Chapter 7 trustee filed an adversary proceeding against a secured creditor, pursuant to 11 U.S.C.S. § 544(a) to exercise his strong arm powers to bring the debtors' residence into the bankruptcy estate under 11 U.S.C.S. § 541. The parties filed cross motions for summary judgment.
Ruling: 
Trustee could not avoid deed of trust for which release was not recorded prior to petition date.
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Consumer case opionion summary, case decided on October 26,2012, LexisNexis #1112-125

Garcia v. Burkhartsmeier (In re Burkhartsmeier)

Creditor, the putative purchaser of two coffee kiosks, brought an adversary proceeding against defendant debtors, seeking to except from discharge, under 11 U.S.C.S. § 523(a)(2)(A), $194,322.06 in funds he had advanced to debtors toward the purchase.
Ruling: 
Debt for funds advanced based on debtor's inducement were excepted from discharge.
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Consumer case opionion summary, case decided on October 24,2012, LexisNexis #1112-049

In re Marsh

Pursuant to Fed. R. Bankr. P. 4004(b), a chapter 7 trustee filed a motion for enlargement of time to seek denial of a debtor's discharge under 11 U.S.C.S. § 727. The debtor objected to the motion.
Ruling: 
Extension of time for trustee to seek denial of discharge on basis of allegedly unscheduled car and motorcycle denied.
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Consumer case opionion summary, case decided on September 26,2012, LexisNexis #1012-104

In re Pulliam

Chapter 7 debtor filed a notice of application for payment of professional fees and costs in the total amount of $368,582, including $312,000 for her own labor billed at $300 per hour, and $27,000 for her co-debtor's labor billed at $60 per day. The Trustee filed an objection.
Ruling: 
Pro se debtor's application for compensation denied except for utility and storage costs.
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Consumer case opionion summary, case decided on September 26,2012, LexisNexis #1012-077

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