Skip to main content

Bankruptcy Court

Wilkinson-Bell v. Educational Credit Management Corp.

Ruling
Blind debtor with other health problems living at or below poverty level granted an undue hardship discharge of student loan debt.
Procedural posture

Plaintiff bankruptcy debtor brought an adversary proceeding against defendant creditor, seeking a determination that student loan debt to the creditor, which the debtor incurred for her older daughter's education, was dischargeable based on undue hardship under 11 U.S.C. § 523(a)(8). The bankruptcy court conducted a trial.

ABI Membership is required to access the full summary of Wilkinson-Bell v. Educational Credit Management Corp. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on April 02, 2007 , LexisNexis #0507-020

In re Sullivan

Ruling
Creditor's inclusion of undisclosed preconfirmation attorneys fees and bankruptcy attorneys'fees in payoff letter demanding payment as prerequisite to closing violated stay.
Procedural posture

Under consideration by the court was a motion filed by debtor pursuant to 11 U.S.C. § 362(h). Claiming violations of the automatic stay provisions of 11 U.S.C. § 362, debtor requested $10,000 in actual, statutory, and punitive damages against a creditor and its law firm, as well as contingent attorney fees, or, in the alternative, $2,000 in attorneys' fees, and an order vacating and discharging any indebtedness claimed by the creditor.

ABI Membership is required to access the full summary of In re Sullivan Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on April 02, 2007 , LexisNexis #0507-018

Connor v. Countrywide Bank (In re Connor)

Ruling
Creditor's monthly statements did not violate stay during chapter 13 case but did violate stay after conversion to chapter 7.
Procedural posture

After plaintiff debtor filed a complaint alleging violations of 11 U.S.C. § 362(a)(6), the court partially granted defendant creditor's motion to dismiss, finding that the complaint did state a claim as to a letter sent to the debtor but that monthly statements sent to the debtor did not constitute stay violations. The debtor filed a motion for reconsideration.

ABI Membership is required to access the full summary of Connor v. Countrywide Bank (In re Connor) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on April 02, 2007 , LexisNexis #0907-001

Hayes v. Morgan Stanley DW Inc. (In re Stewart Fin. Co.)

Ruling
Payments to investment company margin accounts belonging to debtor's former principal were not avoidable.
Procedural posture

Plaintiff trustee filed an action against defendant investment company to avoid and recover, as fraudulent transfers, certain payments made by the debtor that were to be applied to margin accounts opened by and belonging to a former principal of the debtor. The investment company filed a motion for summary judgment.

ABI Membership is required to access the full summary of Hayes v. Morgan Stanley DW Inc. (In re Stewart Fin. Co.) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on March 30, 2007 , LexisNexis #0507-023

Salven v. Lyons (In re Bergtholdt)

Ruling
Real estate broker's commission on unauthorized postpetition sale of debtors'residence was avoidable.
Procedural posture

Plaintiff trustee filed a complaint to recover the commission received by defendant broker from the sale of the debtors'residence on the ground that the commission constituted property of the bankruptcy estate that was subject to turnover under 11 U.S.C. § 542 and that the payment of the commission constituted a voidable transfer of property of the estate under 11 U.S.C. § 549.

ABI Membership is required to access the full summary of Salven v. Lyons (In re Bergtholdt) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on March 30, 2007 , LexisNexis #0507-027

Desmond v. Baker (In re McDonnell)

Ruling
Legal fees paid by debtor from proceeds of unauthorized postpetition sale of residence were recoverable by trustee.
Procedural posture

Plaintiff, a chapter 7 trustee, sued defendant, counsel to debtor, pursuant to 11 U.S.C. § 542(a) for $1,000 that he received from debtor on account of legal fees allegedly owed for legal services, which payment was made from the proceeds of debtor's postpetition but unauthorized sale of her residence while a chapter 13 was pending. Cross-motions for summary judgment were filed.

ABI Membership is required to access the full summary of Desmond v. Baker (In re McDonnell) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on March 30, 2007 , LexisNexis #0507-022

In re Kogler

Ruling
Mortgage and car loan payments were appropriate Form B22A deductions regardless of intent to surrender.
Procedural posture

Before the court was the U.S. Trustee's motion to dismiss debtors'chapter 7 case.

ABI Membership is required to access the full summary of In re Kogler Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on March 30, 2007 , LexisNexis #0707-047

In re Gartman

Ruling
Debtor could not amend schedules to seek exemption for tax refund previously concealed in bad faith.
Procedural posture

Debtor filed for chapter 7 relief. Debtor did not disclose any possible tax refunds due to him in his original Schedule B filed with the petition. Debtor also did not inform the trustee prior to the meeting of creditors that he was entitled to a tax refund or that his Schedule B was incorrect. Debtor filed an amended Schedule C, seeking a $900.00 exemption for an anticipated tax refund. The trustee filed an objection to debtor's claim.

ABI Membership is required to access the full summary of In re Gartman Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on March 30, 2007 , LexisNexis #0507-014

In re Westenberg

Ruling
Debtor who completed all plan payments was entitled to discharge despite failure to fully satisfy several secured claims.
Procedural posture

Chapter 13 trustee filed a motion to dismiss debtors'case, claiming that debtors were not entitled to a discharge because certain secured claims had not been fully satisfied at the end of the confirmed plan's term. Debtors objected to the motion.

ABI Membership is required to access the full summary of In re Westenberg Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on March 30, 2007 , LexisNexis #0507-032

In re Kolb

Ruling
Confirmation of above-median debtors' plan denied due to insufficient payments to unsecured creditors.
Procedural posture

A chapter 13 matter was before the court on the trustee's objection to confirmation of debtor's proposed plan.

ABI Membership is required to access the full summary of In re Kolb Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

opinion summary, case decided on March 30, 2007 , LexisNexis #0507-048