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eastern district of washington

Kriegman v. 0817726 BC Ltd. (In re LLS Am. LLC)

Ruling
Filing of proof of claim was a consent to jurisdiction to adjudicate trustee's avoidance proceeding.
Procedural posture

Plaintiff chapter 11 trustee filed a complaint against defendant lenders and investors seeking to recover money paid by a debtor as part of an alleged Ponzi scheme conducted by the debtor. Certain defendants filed motions to dismiss for insufficient service of process, improper extraterritorial application of U.S. bankruptcy law, and failure to state the alleged fraud with particularity as required by Fed. R. Civ. P. 9(b).

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Commercial opinion summary, case decided on November 16, 2012 , LexisNexis #1212-091

Lawrence v. Childers (In re Childers)

Ruling
Discharge denied due to failure to schedule interest in probate estate.
Procedural posture

Creditors commenced an adversary proceeding to deny debtors' discharge under 11 U.S.C.S. §§ 727(a)(4), (a)(2), (a)(3), and (a)(5) and Fed. R. Bankr. P. 7001.

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Consumer opinion summary, case decided on May 15, 2012 , LexisNexis #0612-028

In re Vargas

Ruling
Bank sanctioned for pursuit of foreclosure and offset of debtor's checking account in violation of discharge injunction.
Procedural posture

Debtor filed a motion for an order of contempt, seeking an award of sanctions against creditor bank for alleged violations of the discharge injunction of 11 U.S.C.S. § 524(a).

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Consumer opinion summary, case decided on February 29, 2012 , LexisNexis #0412-020

In re LLC Am. LLC

Ruling
Consolidation of debtor and non-debtor estates granted in best interests of creditors.
Procedural posture

Chapter 11 trustee filed a nunc pro tunc motion for substantive consolidation of the debtor and non-debtor estates.

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Commercial opinion summary, case decided on September 08, 2011 , LexisNexis #1011-036

Harvey v. AllianceOne Receivables Mgmt.

Ruling
There is no private right of action under §524.
Procedural posture

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.

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Consumer opinion summary, case decided on July 18, 2011 , LexisNexis #0811-054

Clayton v. Roundup Funding LLC (In re Clayton)

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.
Procedural posture

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).

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Consumer opinion summary, case decided on October 12, 2010 , LexisNexis #1110-078

Fry v. Dinan (In re Dinan)

Ruling
Claim disallowed due to state law providing that creditor was deemed paid in full upon repossession and sale of collateral.
Procedural posture

Plaintiff creditor filed an adversary proceeding against defendant chapter 7 debtors, seeking a judgment that a debt the debtors owed was nondischargeable under 11 U.S.C.S. § 523(a)(14), an order denying the debtors' discharge under 11 U.S.C.S. § 727(a). The case was tried to the court.

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Consumer opinion summary, case decided on March 01, 2010 , LexisNexis #0510-117

In re Vanderhouwen

Ruling
Final disbursement including payment of IRS and trustee's own fees approved.
Procedural posture

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.

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Consumer opinion summary, case decided on January 15, 2010 , LexisNexis #0310-069

In re Keith T.

Ruling
Case ordered converted to chapter 13 or dismissed for abuse due to indicia of bad faith.
Procedural posture

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).

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Consumer opinion summary, case decided on December 30, 2009 , LexisNexis #0210-019

In re Howeser

Ruling
Fee application denied due to debtor's attorneys' pre- and post-petition representation of creditor with interest adverse to estate.
Procedural posture

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).

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Consumer opinion summary, case decided on December 08, 2009 , LexisNexis #0110-040