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Eastern District

In re LLC Am. LLC

Chapter 11 trustee filed a nunc pro tunc motion for substantive consolidation of the debtor and non-debtor estates.
Ruling: 
Consolidation of debtor and non-debtor estates granted in best interests of creditors.
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Commercial case opionion summary, case decided on September 08,2011, LexisNexis #1011-036

In re Renteria

Chapter 13 trustee objected to confirmation of the Chapter 13 plan filed by the debtor. The trustee contended that the plan unfairly discriminated against unsecured creditors in violation of 11 U.S.C.S. § 1322(b)(1).
Ruling: 
Unfair discrimination test was not applicable to consumer debt for attorneys' fees incurred in family law litigation.
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Consumer case opionion summary, case decided on August 01,2011, LexisNexis #0911-064

Harvey v. AllianceOne Receivables Mgmt.

Plaintiff bankruptcy debtor sued defendant debt collector for alleged violations of the Fair Debt Collection Practices Act (FDCPA) and the Washington State Consumer Protection Act. The debt collector moved to dismiss.
Ruling: 
There is no private right of action under §524.
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Consumer case opionion summary, case decided on July 18,2011, LexisNexis #0811-054

Clayton v. Roundup Funding LLC (In re Clayton)

Defendant, the assignee of a claim against debtor husband, moved for summary judgment on debtors' claim that it had violated the injunctions in 11 U.S.C.S. § 362(a) and 11 U.S.C.S. § 524(a) by filing a claim in the instant case on account of a debt incurred by debtor husband that had been discharged in a prior no-asset chapter 7 case filed by debtor husband. At issue was whether the filing of the claim violated either § 362(a) or § 524(a).
Ruling: 
Filing a claim that had been discharged in debtor's prior bankruptcy did not violate stay or discharge injunction where creditor had not received notice of discharge.
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Consumer case opionion summary, case decided on October 12,2010, LexisNexis #1110-078

In re Vanderhouwen

Debtor filed a petition under chapter 11 of the Bankruptcy Code, and a trustee was appointed to administer the debtor's bankruptcy estate. The trustee liquidated the estate's assets and filed a motion for authorization to make final disbursement of $ 436,000 he held for the estate. The debtor objected, challenging the trustee's proposal to distribute funds to the Internal Revenue Service (IRS) and to use the funds to pay his own fee.
Ruling: 
Final disbursement including payment of IRS and trustee's own fees approved.
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Consumer case opionion summary, case decided on January 15,2010, LexisNexis #0310-069

In re Keith T.

This matter came before the court on the U.S. Trustee's (UST) motion to dismiss debtors' chapter 7 for abuse pursuant to 11 U.S.C.S. § 707(b).
Ruling: 
Case ordered converted to chapter 13 or dismissed for abuse due to indicia of bad faith.
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Consumer case opionion summary, case decided on December 30,2009, LexisNexis #0210-019

In re Howeser

A law firm filed an application for an award of compensation for services to the estate of a chapter 11 debtor. Objections to compensation were filed pursuant to 11 U.S.C.S. § 328(c).
Ruling: 
Fee application denied due to debtor's attorneys' pre- and post-petition representation of creditor with interest adverse to estate.
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Consumer case opionion summary, case decided on December 08,2009, LexisNexis #0110-040

Bruner v. Armstrong (In re Armstrong)

Plaintiff trustee filed an action against defendant chapter 13 debtors, seeking review of a decision by the Bankruptcy Court for the Eastern District of Washington which confirmed a plan the debtors proposed for repaying their creditors. The trustee claimed that the plan should not have been confirmed because it did not require the debtors to commit all their disposable income to the plan, as required by 11 U.S.C.S. § 1325(b)(1)(B).
Ruling: 
Above-median debtors entitled to claim monthly vehicle expense on two cars, one of which was owned free and clear.
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Consumer case opionion summary, case decided on September 24,2008, LexisNexis #1108-084

Munding v. LeMaster & Daniels P.L.L.C. (In re Spokane Raceway Park Inc.)

Plaintiff chapter 11 trustee filed an adversary proceeding against defendant accounting firm, seeking a judgment determining the validity of a claim the firm filed against a corporate debtor's bankruptcy estate. The firm filed a third-party action against third-party defendant Washington limited partnership, claiming that the partnership had an obligation to indemnify it against any judgment the trustee obtained. The partnership moved to dismiss.
Ruling: 
Bankruptcy court voluntarily abstained from hearing indemnity action against third party already pending in state court.
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Commercial case opionion summary, case decided on July 09,2008, LexisNexis #0908-093

Lyons v. Sandifur (In re Metropolitan Mortg. & Secs. Co.)

Plaintiff, the plan administrator and trustee of the creditors' trust, the successor-in-interest to the debtor, filed an adversary proceeding asserting a claim for avoidance and recovery of avoidable transfers under 11 U.S.C.S. § 548 and recovery of unlawful dividend payments under Wash. Rev. Code § 23B.06.400 and 11 U.S.C.S. § 108. Defendant, both the trustee of a trust and a shareholder and director of the debtor, moved to dismiss the claims.
Ruling: 
Trustee of trust dismissed due to receipt of unlawful dividend payments.
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Commercial case opionion summary, case decided on April 11,2008, LexisNexis #0608-101

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