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Bankruptcy Court

Williams Land Clearing, Grading, & Timber Logging, LLC, In re--Williams Land Clearing, Grading, & Timber Logging, LLC v. Apex Funding Source LLC

Ruling
Payment directly to creditor of receivable owed to debtor was avoidable as it allowed creditor to receive more than it would have in a Chapter 7 case. (Bankr. E.D.N.C.)
Issue(s)
Preferences.

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Commercial opinion summary, case decided on May 16, 2025 , LexisNexis #0725-065

Garcia, In re--Garcia v. United States Dep't of Educ.

Ruling
Discharge of student loan debt was denied because debtor could maintain minimal living standard, lacked evidence of long-term hardship, and failed to show good faith repayment efforts. (Bankr. W.D. Tex.)
Issue(s)
Exceptions to Discharge; Types of Debt Excepted; Educational Loans.

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Consumer opinion summary, case decided on May 16, 2025 , LexisNexis #0725-063

Bortz, In re--Lavender v. Bortz

Ruling
Debt was excepted from discharge as debtor obtained funds through false representations and actual fraud in failed construction project. (Bankr. S.D. Tex.)
Issue(s)
Exceptions to Discharge; Types of Debt Excepted; Fraud; False Pretenses, False Representations or Actual Fraud.

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Consumer opinion summary, case decided on May 16, 2025 , LexisNexis #0725-062

Sutton, In re

Ruling
Creditor did not violate the automatic stay as it took no affirmative action after learning of bankruptcy and promptly moved to stay contempt proceedings. (Bankr. D. Colo.)
Issue(s)
Automatic Stay; Remedies for Violation; Damages For Willful Violation of Stay.

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Consumer opinion summary, case decided on May 16, 2025 , LexisNexis #0725-058

Seven Rivers Leasing Corp., In re

Ruling
Two aircraft hangars were not property of the estate because debtor lacked interest in one and foreclosure had extinguished rights in the other before bankruptcy. (Bankr. W.D. Ark.)
Issue(s)
Automatic Stay; Relief from Stay.

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Commercial opinion summary, case decided on May 16, 2025 , LexisNexis #0725-057

Johnson, In re

Ruling
Court upheld partial commission claim for auction of estate property as debtor agreed to terms and estate benefited, but denied full commission due to lack of court approval and improper handling of motor vehicles. (Bankr. S.D. Ala.)
Issue(s)
Employment of Professional Persons.

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Consumer opinion summary, case decided on May 16, 2025 , LexisNexis #0725-052

Salee Amina Mohammed, In re

Ruling
Chapter 13 case properly dismissed as debtor failed to comply with credit counseling requirement and there were no exceptional circumstances justifying relief. (Bankr. D. Utah)
Issue(s)
Who May Be a Debtor; Mandatory Credit Counseling.

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Consumer opinion summary, case decided on May 16, 2025 , LexisNexis #0725-051

Celsius Network LLC, In re--Meghji v. Bailey

Ruling
Counterclaims filed by “unknown” creditor discharged under the confirmed Chapter 11 plan as publication notice was sufficient and the creditor failed to file a timely proof of claim. (Bankr. S.D.N.Y.)
Issue(s)
Effect of Confirmation; Discharge.

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Commercial opinion summary, case decided on May 15, 2025 , LexisNexis #0725-071

Nat'l Reality Inv. Advisors, LLC, In re

Ruling
Creditors’ claims subordinated because they ignored signs of fraud, enabling Ponzi scheme and harming other creditors. (Bankr. D.N.J.)
Issue(s)
Subordination; Equitable Subordination.

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Commercial opinion summary, case decided on May 15, 2025 , LexisNexis #0725-060

Berkley, In re

Ruling
Court allowed fraud and embezzlement claims because plaintiffs pled specific misrepresentations and misuse of funds, but dismissed fiduciary and larceny claims for lack of required elements. (Bankr. N.D. Ohio)
Issue(s)
Exceptions to Discharge; Types of Debt Excepted.

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Consumer opinion summary, case decided on May 15, 2025 , LexisNexis #0725-061