Commercial

In re Joobeen

Chapter 13 trustee filed motions to dismiss two related chapter 13 cases pursuant to 11 U.S.C. § 1307(c). A judgment creditor filed motions for relief from the automatic stay in the cases.
Ruling: 
Debtor's third case dismissed for bad faith with prohibition on further filings without leave of court.
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Port Louis Owners Assn v. Savage (In re Savage)

Adversary plaintiff, a homeowners association, brought a claim to deny the discharge of a debt for insurance funds that debtors diverted for their own benefit in the rebuilding of two unit structures damaged by a fire. The association's allegations fell under the fraud and embezzlement provisions of 11 U.S.C. § 523(a)(2)(A) and (a)(4).
Ruling: 
Debtor's diversion of condominium association insurance proceeds to personal use resulted in nondischargeable debt.
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In re Turkowitch

Chapter 13 bankruptcy debtors proposed plans which provided for the surrender of vehicles to creditors secured by the vehicles in full satisfaction of their debts to the creditors under 11 U.S.C. § 1325(a). The creditors objected to confirmation of the debtors'plans on the ground that the hanging paragraph at the end of section 1325(a) did not preclude allowance of unsecured claims for deficiency balances.
Ruling: 
Surrender of vehicles satisfied secured claims in full, including deficiency balance.
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Kirby v. Kirby (In re Kirby)

The debtor's ex-spouse brought an adversary proceeding pursuant to 11 U.S.C. § 727(a) objecting to debtor's chapter 7 discharge. The debtor filed a motion for summary judgment, arguing that her ex-spouse was not a "creditor" and therefore lacked standing to object under 11 U.S.C. § 727(a).
Ruling: 
Former spouse with no actual bankruptcy claim lacked standing to object to debtor's discharge.
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Universal Church v. Geltzer

Appellant church, a nonprofit corporation, sought review of a judgment from the District Court for the Eastern District of New York, which held that the Religious Liberty and Charitable Donation Protection Act did not prevent appellee bankruptcy trustee from avoiding a chapter 7 debtor's donations to the church under 11 U.S.C. § 548(a)(2). The church also appealed the denial of its motion to reconsider.
Ruling: 
Bankruptcy court erred in failing to determine if debtor was insolvent at time of charitable contributions trustee sought to avoid.
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In re Tubular Techs. LLC

A bankruptcy debtor was deemed to have rejected its commercial lease after it failed to obtain an order for an extension of time to accept or reject the lease within the time limit set by 11 U.S.C. § 365(d)(4)(B)(i). The debtor appealed the rejection order and moved the bankruptcy court for a stay of the order pending the appeal.
Ruling: 
Debtor's motion for stay pending appeal was denied since debtor had failed to move for extention of time to accept or reject contract within period allowed.
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In re Martinez-Held

A trustee filed an ore tenus motion, pursuant to 11 U.S.C. § 707(a), to condition the voluntary dismissal of a debtor's chapter 7 bankruptcy petition on the payment of the trustee's attorneys'fees.
Ruling: 
Bankruptcy court refused to condition voluntary dismissal in case with few assets on payment of trustee's attorneys'fees.
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Hodges v. Armada (In re Hodges)

Plaintiffs, debtors, filed an adversary proceeding against defendant collection agency contending the agency's action violated the discharge injunction and provisions of the Fair Debt Collection Practices Act ("FDCPA"). The agency attempted to collect a debt for legal fees allegedly owed to the law firm that represented the debtors in their chapter 7 bankruptcy case.
Ruling: 
Collection agency violated discharge injunction by attempting to collect a debt that was discharged.
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In re Mingueta

Debtor filed a chapter 13 case and requested a waiver of the requirement to obtain pre-bankruptcy budget and credit counseling due to exigent circumstances. The bankruptcy court directed the debtor to show cause why the case should not be dismissed due, in pertinent part, to his failure to file either a certificate of credit counseling or a certificate of exigent circumstances in compliance with 11 U.S.C. § 109(h).
Ruling: 
Debtor's chapter 13 case was dismissed since the debtor neither obtained prepetition credit counseling nor established grounds for a temporary or permanent waiver of the requirement.
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In re Porcheddu

The court issued a show cause order against an attorney and her law firm after discovering that the firm was adjusting time entries after-the-fact and then holding the fee statements out to be the firm's business records. The attorney and the firm represented creditors in consumer bankruptcy cases in the court.
Ruling: 
Court imposed sanctions on a firm and an attorney for fraudulent fee shifting.
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