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.

Johnson v. AmeriCredit Fin. Servs. (In re Booth)

After the debtors filed for chapter 7 bankruptcy protection, plaintiff trustee brought an adversary proceeding against defendant lienholder, alleging that the lien on a vehicle constituted a preference in violation of 11 U.S.C. § 547 and was avoidable under 11 U.S.C. § 547(b). The parties cross-moved for summary judgment.
Ruling: 
Trustee could not avoid lien since lienholder could invoke affirmative defense under section 547(c)(3).
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In re Goldsmiths Inc.

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditor seeking to avoid transfers from the debtor fraudulent transfer under 11 U.S.C. § 548. The creditor in its answer raised its defenses under the preference statute, 11 U.S.C. § 547(c)(2). The trustee filed a motion for summary judgment, asserting he was entitled to avoid the transfers as a preference. The creditor did not file a response.
Ruling: 
Payment that was made 90 days late was not a transfer made in the ordinary course of business and was avoidable.
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Magic Lamp L.L.C. v. LeBlanc (In re LeBlanc)

Adversary plaintiff creditor sued for a determination that debtor's liability to it under an outstanding mortgage was nondischargeable under 11 U.S.C. § 523(a)(2) and (a)(6), where debtor had sold the real property before he filed bankruptcy, but had failed to pay off the outstanding balance on the note and mortgage from proceeds of the sale of the mortgaged property. The debtor denied any misconduct on his part.
Ruling: 
Court ruled in favor of creditor that outstanding mortgage liability was nondischargeable but denied creditor's request for attorneys'fees.
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In re Beach Dev. LP.

Two creditors, an individual and a partnership, objected to the claims of the third and fourth creditors, the debtor's limited partner's ex-wife and the limited partner's receiver, and moved for summary judgment. The receiver objected to the claims of the individual and the partnership. The receiver sought summary judgment on his objections and sought dismissal of the partnership's objection to his claim.
Ruling: 
Creditor's objection to claims of limited partner's former spouse and limited partner's receiver overruled.
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In re Delbrugge

Creditor objected to confirmation of the chapter 13 plan proposed by debtors on the basis that debtors should not be allowed to deduct the costs of a hypothetical sale of their residence in performing the best interests of the creditors calculation of 11 U.S.C. § 1325(a)(4) due to the particular facts of this case.
Ruling: 
Court held that debtors were allowed to deduct estimated costs of sale of their residence in performing section 1325(a)(4)'s best interests of creditors test.
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In re Hudson LLC

Following trial with evidence on the issue of whether the creditor was "in possession" of subject property under 11 U.S.C. § 365(i), the instant order was made and would be entered as Findings of Fact and Conclusions of Law. Trial was held pursuant to pretrial order, and the instant ruling applied as a dispositive ruling on the 11 U.S.C. § 365(i) issue unless the creditor sought to reopen it on motion and notice for good cause shown.
Ruling: 
Court deemed that creditor did not qualify as a purchaser in possession but did hold lien for earnest money deposit.
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Green v. Cornell Univ. (In re Green)

After filing a voluntary chapter 7 petition, plaintiff debtor sued defendant university and education loan companies, seeking a determination that debt arising from various educational loans should have been discharged under 11 U.S.C. § 523(a)(8) because repayment would have imposed an undue hardship upon him. The bankruptcy court conducted a trial.
Ruling: 
Debt was deemed nondischargeable since debtor failed to prove undue hardship.
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In re Arguin

The debtors sought to modify their confirmed chapter 13 plan to allow the surrender of a used motor vehicle to the secured creditor. Pursuant to 11 U.S.C. § 1329, the debtors proposed to relegate the unpaid secured component of the claim to unsecured status for the balance of the amended plan term and sought to reduce the term of the plan from 56 months to 36 months. The creditor objected to the proposed modification.
Ruling: 
Debtors'motion to modify their plan was denied since debtors could not strip down creditor's secured claim that had been previously crammed down when plan was confirmed.
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In re Lewis

On remand from the district court, the court was directed to consider the motion by counsel for chapter 13 debtor, requesting that the court direct the chapter 13 trustee to make a distribution to counsel on account of unpaid counsel fees allegedly earned by counsel in the course of the bankruptcy representation. The court also considered a similar motion from counsel in a second chapter 13 case.
Ruling: 
Motion for distribution of unpaid counsel fees filed just prior to dismissal scheduled for hearing.
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In re Murphy

A creditor submitted a request under 11 U.S.C. § 362(j) for an order confirming the termination of an automatic stay, ruling that a subsequent chapter 13 plan would not bind the creditor, and awarding attorneys'fees.
Ruling: 
Court confirmed that automatic stay was terminated since debtor had prior case dismissed within one year of filing.
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In re Delta Air Lines

Chapter 11 debtor, a regional airline, filed a motion to reject its collective bargaining agreement ("CBA") with its flight attendants under 11 U.S.C. § 1113.
Ruling: 
Airline's motion for rejection of collective bargaining agreement with flight attendants granted.
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In re Grady

Debtors filed a voluntary petition for relief under chapter 13. Debtors filed a proposed plan of reorganization. The chapter 13 trustee filed an objection to confirmation and requested dismissal of the case.
Ruling: 
Debtors were not bound by calculation of monthly disposable income in Official Form B22C, and plan was confirmed since sections 1323 and 1329 allowed for modification of plan due to changed circumstances.
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Miller v. NLVK LLC (In re Miller)

The District Court for the District of Nebraska granted plaintiff chapter 11 debtor's request to set aside a property transfer. Defendant purchaser appealed.
Ruling: 
Judgment was reversed and remanded to determine whether present fair equivalent value was paid for property when prior liens are considered.
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American Investors Life Ins. Co. v. Salinas (In re Salinas)

Defendants, the personal representatives of estates of various deceased persons (estates), asked the court to abstain from exercising jurisdiction over a two-count complaint filed by plaintiff insurance company, which request was made pursuant to 28 U.S.C. § 1334(c)(1) or (2). The company later withdrew its first cause of action. At issue was whether abstention was proper.
Ruling: 
Bankruptcy court abstained from proceeding to determine if debtor was acting as agent of insurance company when recommending improper investments.
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