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§ 1112(b)(4)

In re GEL LLC

Ruling
Case dismissed due to debtor's multiple serial filings, failure to comply with reporting obligations and failure to maintain adequate insurance.
Procedural posture

Debtors' largest and sole secured creditor applied for the entry of a court order dismissing the chapter 11 cases of two debtor limited liability companies (LLC) with prejudice pursuant to 11 U.S.C.S. §§ 362(d)(4), 707(a) and 1112(b), asserting that multiple grounds warranted the relief, including the failure of debtors to maintain insurance on the real property, and numerous indicia of that the filings were in bad faith.

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Commercial opinion summary, case decided on July 30, 2012 , LexisNexis #0812-091

In re Jonas

Ruling
Case dismissed pursuant to failure to perform terms of stipulation regarding domestic support order or to file timely disclosures and confirm plan.
Procedural posture

A chapter 11 debtor's former spouse filed a motion to dismiss the debtor's case for cause under 11 U.S.C.S. § 1112(b)(4)(P) based on his failure to pay domestic support obligations ordered by a state court in their divorce. The debtor moved to extend time to file a chapter 11 plan and disclosure statement. Certain creditors filed a motion for reconsideration of a decision overruling their objection to the former spouse's claim.

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Consumer opinion summary, case decided on July 17, 2012 , LexisNexis #0812-027

In re Whetten

Ruling
Case dismissed due to failure to file plan, submit monthly reports of pay quarterly fees.
Procedural posture

The United States Trustee filed a motion to covert or dismiss the debtors' chapter 11 cases under 11 U.S.C.S. § 1112(b)(4).

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Consumer opinion summary, case decided on June 05, 2012 , LexisNexis #0612-131

In re Sundale Ltd.

Ruling
Substantially consummated case converted to chapter 7 due to material default.
Procedural posture

In a chapter 11 case, creditors requested conversion to chapter 7. The reorganized debtors opposed, arguing that there could be no conversion because the plan had been substantially consummated.

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Commercial opinion summary, case decided on February 13, 2012 , LexisNexis #0312-098

Perlis v. Perlis (In re Perlis)

Ruling
Debtor's prepetition failure to maintain life insurance as required by divorce decree was not grounds for dismissal.
Procedural posture

Movant ex-wife filed a motion to dismiss or convert her ex-husband's ("debtor's") chapter 11 bankruptcy case pursuant to 11 U.S.C.S. § 1112(b)(4)(P), claiming that the debtor violated a domestic support obligation when he failed to pay premiums on a life insurance policy and allowed the policy to lapse. The debtor opposed the motion.

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Consumer opinion summary, case decided on January 10, 2012 , LexisNexis #0612-060

In re Torres

Ruling
Case dismissed due to debtor's failure to timely pay postpetition taxes.
Procedural posture

A creditor of Chapter 11 debtor sought relief from the automatic stay and also filed a motion to dismiss the debtor's Chapter 11 case pursuant to 11 U.S.C.S. § 1112(b)(4).

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Consumer opinion summary, case decided on October 21, 2011 , LexisNexis #1111-128

In re BBB Acquisition LLC

Ruling
Conversion to chapter 11 denied absent evidence debtor solely sought to avoid specific performance judgment or of diminution and mismanagement of estate.
Procedural posture

Creditor, a family trust, moved per 11 U.S.C.S. § 1112 to convert the chapter 11 case filed by debtor into a chapter 7 case. Objections to the motion were asserted by debtor, a bank, and two other interested parties. The U.S. Trustee (UST) had previously filed a motion for the same relief on allegations that cause for conversion was shown, and both motions were heard and decided together.

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Commercial opinion summary, case decided on September 16, 2011 , LexisNexis #1011-128

In re Camelot Club Condo. Assn

Ruling
Debtor condominium association's case dismissed due to inability to fund plan.
Procedural posture

The U.S. Trustee sought to dismiss the bankruptcy case of a Chapter 11 debtor, a condominium association, under 11 U.S.C.S. § 1112(b)(4)(A). The main issue was a disputed proof of claim filed by the City for unpaid water service and sewer charges.

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Commercial opinion summary, case decided on August 09, 2011 , LexisNexis #1011-098

In re Fugitive Recovery Investigations Inc.

Ruling
Case dismissed due to debtor's failure to file pre- and postpetition tax returns.
Procedural posture

Movant, the Internal Revenue Service (IRS), the holder of an unsecured priority tax claim under 11 U.S.C.S. § 507(a)(8), filed a motion to dismiss the case for respondent chapter 11 debtor's failure to file both pre-petition and postpetition tax returns and to file postpetition federal employment tax returns pursuant to 11 U.S.C.S. §1112(b)(4)(I), for retroactive annulment of the automatic stay pursuant to 11 U.S.C. § 362(d).

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Commercial opinion summary, case decided on July 13, 2011 , LexisNexis #0811-128

In re Greg Adams Enters. Inc.

Ruling
Creditor sublessor's motion to dismiss or convert chapter 11 case denied where debtor negotiated direct lease with prime lessor to provide premises for reorganization.
Procedural posture

A creditor filed a motion to dismiss or convert a Chapter 11 debtor's case for cause pursuant to 11 U.S.C.S. § 1112(b)(1) and (4)(A).

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Commercial opinion summary, case decided on May 02, 2011 , LexisNexis #0511-129