Washington

In re Smith

The matter came before the court on objections to confirmation of debtors'chapter 13 plan by the chapter 13 trustee (Trustee), the U.S. Trustee (UST) and a creditor.
Ruling: 
Deductions for expenses relating to property intended for surrender were not grounds for denial of confirmation.
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Consumer case opionion summary, case decided on November 14,2008, LexisNexis #0109-091

Caley v. Dannen

Plaintiff debtor brought claims against defendants, her former spouse, Sallie Mae Inc., which had consolidated their student loans, and the guarantor of the student loans. Sallie Mae and the guarantor moved for summary judgment on the claims.
Ruling: 
Placing nondischargeable student loan debt in default did not violate stay.
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Consumer case opionion summary, case decided on November 04,2008, LexisNexis #1108-136

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

Brown v. Affiliated Computer Servs.

Plaintiff chapter 7 trustee filed a tort action in state court against defendants. The matter was removed to federal court. The trustee filed a motion to remand the case to the state court.
Ruling: 
Equitable remand of estate's tort action was appropriate.
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Consumer case opionion summary, case decided on July 21,2008, LexisNexis #0808-053

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

In re Talley

A U.S. Trustee filed a motion to dismiss a debtor's voluntary chapter 7 petition under 11 U.S.C.S. § 707(b) for abuse after recalculating the debtor's monthly gross income and substituting the IRS Service Housing and Utilities Standard for the debtor's claimed mortgage expense.
Ruling: 
Chapter 7 case ordered converted to chapter 13 where debtor's mortgage payments were two- thirds of budgeted expenses.
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Consumer case opionion summary, case decided on June 05,2008, LexisNexis #0708-084

In re Equa-Chlor LLC

Debtor, a Washington limited liability company, filed a voluntary petition under chapter 11 of the Bankruptcy Code and a motion under Fed. R. Bankr. P. 9019(a) and Bankr. W.D. Wash. R. 9019-1 for entry of an order approving a proposed settlement and compromise. A Committee of Unsecured Creditors filed objections to the settlement agreement.
Ruling: 
Amended settlement agreement approved as in best interests of debtor and creditors.
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Commercial case opionion summary, case decided on April 29,2008, LexisNexis #0608-133

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

Hernandez v. Beneficial Wash. Inc. (In re Hernandez)

Plaintiff debtor requested the entry of judgment on a claim that defendant creditor willfully violated 11 U.S.C. § 362(a) and ignored the discharge injunction in 11 U.S.C. § 524(a)(2).
Ruling: 
Damages awarded due to creditor's willful violation of stay.
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Consumer case opionion summary, case decided on January 04,2008, LexisNexis #0208-093

In re Kerr

The debtors in two proceedings filed voluntary petitions under chapter 13, and the matters were subsequently converted to cases under chapter 7. After conversion the clerk's office for the court generated orders to show cause for dismissal due to the debtors'failure to file a new means test Form B22A, as required by Interim Bankr. W.D. Wash. R. 1007-1(b).
Ruling: 
Form B22A required after conversion from chapter 13 to chapter 7.
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