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§ 507(a)

Michigan Dept of Treasury v. Hight (In re Hight)

Ruling
Protective proof of claim filed by debtor for income tax debt owed to state was properly allowed.
Procedural posture

Michigan Department of Treasury objected to a protective proof-of-claim for an income tax debt filed on its behalf by debtor, who filed for bankruptcy in January 2009, before the return and payment for the taxes were due. A bankruptcy court overruled the objection, finding that the claim was permitted. The United States District Court for the Western District of Michigan at Grand Rapids affirmed. The Treasury appealed.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on March 05, 2012 , LexisNexis #0312-121

In re Aguirre

Ruling
Claim for payment for former spouse's interest in 401(k) account pursuant to divorce decree was not a domestic support obligation and not a priority claim.
Procedural posture

A chapter 13 trustee objected to the allowance of a purported 11 U.S.C.S. § 507(a)(1)(A) priority claim for a domestic support obligation (DSO) asserted by a chapter 7 trustee in the bankruptcy case of the debtor's former spouse.

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Consumer opinion summary, case decided on February 27, 2012 , LexisNexis #0312-081

Fagan v. Collection Div. (In re Fagan)

Ruling
Taxes owed to state pursuant to International Fuel Tax Agreement were excise taxes on transactions and nondischargeable.
Procedural posture

Chapter 7 debtors filed a complaint against Collection Division, State of Michigan Department of Treasury (State), alleging that the international fuel tax owed by the debtor wife to the State was not within the non-dischargeablity exception of 11 U.S.C.S. § 523(a)(1). The State filed a motion to dismiss.

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Consumer opinion summary, case decided on February 14, 2012 , LexisNexis #0312-006

Kolve v. IRS (In re Kolve)

Ruling
Taxes due more than three years before petition date and after confirmation in prior chapter 13 case were dischargeable.
Procedural posture

Plaintiff debtors filed an action against defendant Internal Revenue Service (IRS) to determine whether their income taxes for 2005 and 2006 were dischargeable under 11 U.S.C.S. §§ 507(a)(8) and 523(a)(1). Plaintiffs filed a motion for judgment on the pleadings, which the court treated as a motion for summary judgment.

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Consumer opinion summary, case decided on September 22, 2011 , LexisNexis #1211-010

In re Krueger

Ruling
Confirmation denied due to failure to treat domestic support order as priority secured claim.
Procedural posture

The former spouse of a bankruptcy debtor filed a priority claim based on the debtor's obligation to pay the spouse's mortgage and vehicle expenses under a divorce agreement. The debtor objected to the spouse's claim on the ground that the obligations were not domestic support obligations entitled to priority under 11 U.S.C.S. § 507(a)(1), the spouse objected to confirmation of the debtor's plan which did not provide priority.

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Consumer opinion summary, case decided on September 16, 2011 , LexisNexis #1011-043

California Franchise Tax Bd. V. Kendall (In re Jones)

Ruling
Post-chapter 13 petition tax debt was not excepted from discharge in subsequent post- confirmation, post-discharge chapter 7 case.
Procedural posture

Appellant, the California Franchise Tax Board (FTB), challenged a decision of the U.S. Bankruptcy Appellate Panel for the Ninth Circuit, which affirmed a bankruptcy court ruling in favor of appellee Chapter 7 debtor that certain tax debt was excepted from discharge.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on September 14, 2011 , LexisNexis #1011-013

In re Priester

Ruling
Amount owed to former spouse as "balancing of the equities" was not a domestic support order and was an unsecured, non-priority claim.
Procedural posture

A Chapter 13 debtor filed an objection to a claim filed by his former wife on the grounds that it was not a domestic support obligation entitled to priority status under 11 U.S.C.S. § 507(a)(1)(A) and thus, it should be treated as an unsecured, non-priority claim.

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Consumer opinion summary, case decided on July 22, 2011 , LexisNexis #1011-012

Matson v. Alarcon

Ruling
Severance compensation claim was entitled to administrative expense status.
Procedural posture

Appellee claimants sought priority treatment under 11 U.S.C.S. § 507(a)(4) in a debtor's bankruptcy case for claims for severance compensation. The United States Bankruptcy Court for the Eastern District of Virginia, at Richmond, overruled appellant trustee's objections to priority treatment of the claims. The trustee's appeal was certified to the court of appeals.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on July 06, 2011 , LexisNexis #0711-113

In re Rosenhouse

Ruling
Creditor entitled to administrative expense claim for balance of auto lease payments on surrendered and liquidated auto.
Procedural posture

In a Chapter 13 case, a creditor filed a motion for approval to file an administrative claim pursuant to 11 U.S.C.S. § 507(a). The claim arose from the debtors' assumption of a vehicle lease under their Chapter 13 plan, followed by a default in making lease payments and the debtors' voluntary surrender of the vehicle. The debtors did not oppose the motion.

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Consumer opinion summary, case decided on June 27, 2011 , LexisNexis #0711-112

In re Palmas del Mar Country Club Inc.

Ruling
Claims for return of club membership "deposits" that were not treated as security of held in trust were not entitled to priority status.
Procedural posture

This case was before the court on debtor's objection to the priority status of Proofs of Claim filed by five claimants. The claimants filed oppositions to the objection.

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Commercial opinion summary, case decided on December 29, 2010 , LexisNexis #0211-076