Recent Opinions

ABI's Bankruptcy case opinion summaries website provides summaries of bankruptcy-related opinions issued by U.S. Bankruptcy Courts, District Courts and Circuit Courts of Appeal since 2005. Search almost 20,000 opinion summaries by keyword, relevant code section, court and judge. Opinion summaries are provided by our partner LexisNexis® Collier and are updated weekly.

Kovacs v. Sargent (In re Sargent)

Plaintiff, a chapter 7 trustee, filed an action against defendants, the debtor, and a co-owner in a remainder interest in property, to obtain approval pursuant to 11 U.S.C. § 363(h) to sell the property on behalf of the bankruptcy estate. The trustee and the debtor filed cross-motions for summary judgment.
Ruling: 
Trustee as successor to the debtor's remainderman interest in property could not sell the property in which the debtor's mother had maintained a life estate interest.
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Reiber v. Option One Mortg. (In re Hojnoski)

After debtor filed a chapter 13 bankruptcy petition, plaintiff trustee brought an adversary proceeding against defendant creditor, seeking an order pursuant to 11 U.S.C. §§ 544(b) and 551 to avoid the lien of an unrecorded mortgage on the debtor's residence. Each party moved for summary judgment.
Ruling: 
Lien based on an unrecorded mortgage could not be avoided since a reasonable search of records would have discovered the existence of the mortgage.
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Cook v. Terlecky (In re Cook)

Appellee trustee and purchaser moved for approval of a compromise and settlement of state court litigation involving real property in which appellant debtor claimed an interest. The bankruptcy court granted the motion. The debtor appealed.
Ruling: 
Bankruptcy court did not abuse its discretion in approving a compromise and settlement of state court litigation involving sale of real property since no creditors objected to the sale and the sale was unlikely to be rescinded.
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In re Goodell

Debtor filed a chapter 13 bankruptcy petition. The chapter 13 trustee moved to dismiss the case. Debtor objected to a proof of claim filed by creditor IRS.
Ruling: 
Trustee's motion to dismiss the debtor's chapter 13 case was granted since the debtor did not fully fund the IRS's priority claim or provide enough for unsecured creditors in the debtor's plan.
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In re Havner

Debtor filed a motion to extend the automatic stay of his chapter 13 bankruptcy petition.
Ruling: 
Debtor was denied a motion to extend the automatic stay of a chapter 13 case since, under the totality of the circumstances, the debtor failed to show the second filing was made in good faith.
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In re Warneck

Debtors filed a chapter 13 bankruptcy petition. Debtors moved to extend the automatic stay.
Ruling: 
Debtors were granted an automatic stay extension since they filed in good faith and did not have a presumption of bad faith from prior filings.
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In re Kane

In a proceeding asserted under chapter 7, the trustee objected to amended claimed exemptions that the debtor asserted to the funds maintained by the debtor in an individual retirement account ("IRA") and the trustee sought a turnover of the funds to the estate.
Ruling: 
Debtor was granted an exemption from estate property for an IRA created from a rolled over exempt employee stock ownership plan.
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Jaffe v. Dawson (In re Dawson)

Plaintiff creditor filed an adversary proceeding against defendants, debtors, seeking a determination that the debt owed to him was nondischargeable pursuant to 11 U.S.C. § 523(a)(2)(A). The creditor moved for summary judgment based on collateral estoppel.
Ruling: 
Debt was deemed nondischargeable since the creditor met the creditor's burden of showing that a state court judgment was preclusive on the dischargeability issue.
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In re Gonzalez

In a voluntary bankruptcy case, debtor presented her chapter 13 plan to the court for confirmation. Two creditors objected to the plan and moved to compel debtors to make payments and assume or reject an executory contract.
Ruling: 
Debtor's proposed chapter 13 plan was not confirmable since the plan did not provide for the debtor assuming an executory contract.
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In re Bartholomew

Debtor filed an application to waive the submission of some of the payment advices that he received during the sixty days prior to his bankruptcy filing. He asked that the motion be granted without a hearing. Because debtor's chapter 13 bankruptcy case was commenced after the effective date of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the case was subject to the Act's provisions.
Ruling: 
Court denied the debtor's application to not have to submit certain required payment advices but with leave for the debtor to request a determination that the proceeding was not subject to automatic dismissal for failure to submit all required information.
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In re Plymouth Rubber Co.

The debtors, two companies that were being jointly administered in bankruptcy proceedings, filed a motion to allow one of the debtors to make payments pursuant to an employee retention plan so that the debtors could pay benefits owed to the employees once they are terminated during the wind-down of the debtor's manufacturing operations. The debtors claimed the expense was entitled to administrative expense priority under 11 U.S.C. § 503(b)(1).
Ruling: 
Court granted the debtors' motion for authority to make payments under the employee retention plan as an administrative claim so that the debtors could make severance payments when they became due.
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In re Tolson

Debtor moved to avoid the judicial lien of the creditor pursuant to 11 U.S.C. § 522(f), contending that entireties property was 100 percent exempt, and that the judicial lien impaired the entireties exemption and was thus avoidable.
Ruling: 
A judicial lien was avoided since the lien impaired the debtor's homestead exemption for entireties property co-owned by the debtor's spouse.
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Educ. Credit Mgmt. Corp. v. Frushour (In re Frushour)

Appellant student loan management company appealed from the order of the district court, which held that appellee debtor satisfied the undue hardship requirement in 11 U.S.C. § 523(a)(8) and was entitled to discharge her student loans.
Ruling: 
Discharge of debtor's student loans due was overturned since the debtor had failed to show undue hardship
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In re Armstrong World Indus.

Appellant debtor corporation and two of its subsidiaries filed a chapter 11 petition for bankruptcy. An unsecured creditors committee filed objections to the bankruptcy court's proposed findings and conclusions with the district court. The district court denied confirmation of the bankruptcy reorganization plan. The debtor corporation appealed.
Ruling: 
Debtor corporation was denied confirmation of its chapter 11 reorganization plan because the plan's distribution of warrants to equity interest holders over the objection of a class of unsecured creditors violated the absolute priority rule.
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In re U.S. Airways Inc.

Before the court in a chapter 11 matter was the objection of a creditor to movant reorganized debtors'request for an order disallowing late-filed claims, including two that the claimant filed in the total amount of approximately $9.7 million.
Ruling: 
Court did not allow a creditor's late-filed claims since adequate notice was provided by publication in the paper and the late filing was not due to excusable neglect.
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