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.

In re Mark

Debtor individual filed for chapter 13 bankruptcy protection. Debtor then moved to extend the automatic stay pursuant to 11 U.S.C. § 362(c)(3)(B). The bankruptcy court held a hearing on the motion.
Ruling: 
Debtor was granted a motion to extend an automatic stay from prior filing since the debtor demonstrated good faith in new filing.
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Randle v. Highfill (In re Highfill)

Plaintiff creditor, the spouse of defendant bankruptcy debtor, brought an adversary proceeding seeking nondischargeability of marital debts the debtor agreed to pay in the parties'separation agreement, pursuant to 11 U.S.C. § 523(a)(5) and (15). The bankruptcy court conducted a trial.
Ruling: 
Portion of debt owed to spouse was deemed nondischargeable since the debtor could pay about half of the debt and the debtor's continued use of an equity line of creditor for which the spouse was still obligated demonstrated bad faith.
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Manuel v. Walker (In re Zimmer)

The case was before the court upon plaintiff chapter 7 trustee's complaint against defendant transferees seeking to avoid and recover a transfer of real property pursuant to 11 U.S.C. § 548.
Ruling: 
Trustee was entitled to avoid property transfer since it was clear the parents of one of the debtors had intended to transfer more than bare legal title.
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In re Evans

In a chapter 13 bankruptcy case, debtors objected to a proof of claim filed by creditor, a mortgagee. More specifically, they objected to the extent of creditor's claim. The court conducted a hearing on the objection.
Ruling: 
Court sustained debtors' objection to some of a creditor mortgagee's proof of claim for attorneys'fees and costs since the creditor could not make a secured arrearage claim under section 1322(e) if the fees and costs did not first qualify as part of a secured claim under section 506(b).
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Gruver v. United States Dept of the Treasury (In re Gruver)

Plaintiffs, joint bankruptcy debtors, brought an adversary proceeding against defendant United States, alleging that the government violated the automatic bankruptcy stay by offsetting the debtors'income tax refund against the prior tax liability of one of the debtors.
Ruling: 
Debtors failed to show that the IRS had intentionally violated the automatic stay since the IRS reversed its offsetting of the debtors' refund against a prior tax liability once it became aware of the bankruptcy case.
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In re Star Broad.

Creditor filed a motion for relief from the automatic stay, 11 U.S.C. § 362, in chapter 11 debtor's case and a motion to dismiss debtor's case under 11 U.S.C. § 1112(b).
Ruling: 
Creditor was granted a motion for relief from the automatic stay since the debtor's acting in bad faith by attempting to reject a perceived unprofitable contract warranted such relief.
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In re Refco Inc.

After several related entities filed voluntary chapter 11 petitions, movant official committee of unsecured creditors moved to clarify its obligation under 11 U.S.C. § 1102(b)(3)(A) to provide unsecured creditors who were not members of the committee with access to information.
Ruling: 
Official committee of unsecured creditors had duty to keep unsecured creditors informed but did not have to disclose information that was confidential or required waiving of attorney-client privilege.
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In re Jaraki

A bankruptcy debtor was discharged but his case was reopened upon discovery of a pending state litigation by the debtor which was not disclosed in the bankruptcy. The trustee moved for approval of a settlement of the litigation for $12,500 pursuant to Fed. R. Bankr. P. 9019, and the debtor objected to the settlement on the ground that the value of the litigation substantially exceeded the settlement.
Ruling: 
Debtor's objection to a settlement of undisclosed litigation was overruled s ince the settlement provided for more recovery than was likely to occur and, thus, was in the best interest of the estate.
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Will v. Northwestern Univ. (In re Nutraquest Inc.)

Appellant university filed a third party complaint seeking contribution from various makers of ephedra products after it was sued following the death of one of its football players. Appellee debtor, one of the makers, later filed for bankruptcy protection. The university appealed after the district court upheld the bankruptcy court's approval of a settlement between appellee and the player's estate.
Ruling: 
Court did not abuse its discretion in finding that a tort settlement met Rules requirements and state tort law.
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In re Koliba

In earlier proceedings, the trustee filed a motion to dismiss the debtors'petition for bankruptcy relief because debtors'counsel had not complied with the signature requirements for electronic filing, and the motion to dismiss was denied. The trustee also asked the court to review and deny the fees paid to the debtors'attorney, pursuant to 11 U.S.C. § 329(a) and to order a full or partial disgorgement of the fees already paid.
Ruling: 
Court denied a trustee's motion for denial of the debtor's attorney's fees since the attorney had made a technical filing error and had promptly corrected it.
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In re Council

A prior bankruptcy of debtors, husband and wife, was dismissed upon the debtors'failure to make payments due under their confirmed chapter 13 plan. The debtors subsequently filed a second chapter 13 petition and moved to extend the automatic bankruptcy stay pursuant to 11 U.S.C. § 362(c)(3)(B).
Ruling: 
Automatic stay extension was granted from a prior chapter 13 case since the debtors showed that although they had not complied with the prior plan, that non-compliance was due to a job loss and their second filing was made in good faith.
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In re Nobex Corp.

A bankruptcy debtor in possession, a development stage biopharmaceuticals company, sought to preserve its assets while pursuing a sale of substantially all of its assets pursuant to an orderly sale process. The debtor moved for authorization to pay sale-related incentives to senior management officials.
Ruling: 
Sale-related incentive pay met Code requirements.
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In re Proud Mary Marina Corp.

Debtor, the operator of a mobile home park, and a proposed purchaser each presented a competing chapter 11 plan of reorganization. Debtor also moved for estimation of application for payment of the administrative expense claims of the proposed purchaser. The contestants disputed whether the plans satisfied the "good faith" requirement and the "feasibility" requirements set forth in 11 U.S.C. § 1129(a)(3) and (11).
Ruling: 
Purchaser of debtor's property's chapter 11 plan was confirmable while the debtor's plan was not confirmable since it failed good faith and feasibility requirements.
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Jacksonville Airport Inc. v. Michkeldel Inc.

In defendant debtor's chapter 11 bankruptcy proceeding, plaintiff creditor voted to reject the debtor's reorganization plan. The debtor refused to count the creditor's vote, maintaining that the creditor's claim was not allowed. The bankruptcy court held that debtor did not have to count the creditor's vote, and, on the creditor's appeal, the district court affirmed. The creditor appealed.
Ruling: 
Creditor was not entitled to vote on debtor's reorganization plan since the debtor had objected to the creditor's claim.
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Youngman v. Fleet Bank N.A. (In re A&P Diversified Techs. Realty Inc.)

Appellant bankruptcy trustee filed an appeal after the district court affirmed two orders entered by a bankruptcy court, which awarded attorneys'fees and expenses to appellee mortgagee bank under 11 U.S.C. § 506(b) for foreclosure-related services that the bank's attorneys rendered. The trustee argued that the bank was not entitled to fees under section 506(b).
Ruling: 
Mortgage bank was not entitled to collection-related attorneys'fees and expenses provided for under a mortgage agreement since the agreement had merged into a foreclosure judgment.
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