- 11 U.S.C.
In re Flying J Inc.
Dec
28
2009
Ruling
Net operating loss earned postpetition, carried back and applied against prepetition income, was a prepetition claim that could be set off against prepetition taxes owed.
Procedural posture
Debtor filed a petition under chapter 13 of the Bankruptcy Code and a plan for repaying his creditors. A bank filed an objection to the debtor's plan because it proposed to pay a mortgage on a house he inherited from his mother under his plan, and also filed a motion for relief from the automatic stay.
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Court
:
- 11 U.S.C.
In re C.W. Mining Co.
Dec
09
2009
Ruling
Trustee could offset amounts paid to Minerals Management Services on behalf of debtor's former lessors against lessor's claim against the estate.
Procedural posture
Creditors filed a petition against a mining company (debtor), seeking an order requiring the debtor to enter bankruptcy. The bankruptcy court entered an order for relief, converted the case to one under chapter 7 of the Bankruptcy Code, and appointed a trustee. The trustee filed adversary proceedings against two companies (lessors) that leased property to the debtor and a company (transferee) that acquired rights to mine coal on the properties.
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Court
:
- 11 U.S.C.
In re Cabrera
Dec
08
2009
Ruling
Credit union allowed to retain funds as set-off against prepetition debt.
Procedural posture
This cause came before the court upon the Motion for Order Allowing Set- Off Against Pledged Funds on Deposit filed on behalf of a secured creditor (credit union, or CU) and debtor's Motion for Credit Union to Release Funds.
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Court
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In re Lehman Bros. Holdings
May
12
2009
Ruling
Funds transferred by creditor bank to debtor's account after petition was filed were not subject to setoff.
Procedural posture
A bankruptcy debtor owed a loan debt to a foreign bank and the bank sought to set off funds in the debtor's account against such debt under 11 U.S.C.S. § 553(a). The debtor asserted that the funds were not transferred to the debtor's account by an affiliate of the debtor until after the debtor's bankruptcy petition was filed, and thus the funds were not available for setoff.
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Court
:
- 11 U.S.C.
In re Badour
Mar
13
2009
Ruling
Creditor could offset prepetition liability against debtor's bank accounts that secured the debt.
Procedural posture
A bank at which debtor maintained accounts, sought to offset, against funds in two general deposit accounts belonging to debtor and pursuant to 11 U.S.C.S. § 553, debtor's pre- petition liability in the amount of $12,760 owed to bank on account of credit obligations that had been secured by those deposit accounts. Also at issue was whether debtor's W. Va. Code § 38-10-4 exemption claim therein was cognizable per 11 U.S.C.S. § 522.
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Court
:
- 11 U.S.C.
Ivey v. Hunter Acquisitions Inc. (In re Carolina Acoustical & Floorings Inc.)
Mar
03
2009
Ruling
Obligor on promissory note in favor of debtor allowed setoff for debtor's breach of contract.
Procedural posture
Chapter 7 trustee filed an adversary complaint against the obligor on promissory notes for $30,000 and $50,000, arising out of defendant's purchase of the assets of debtor. At issue inter alia was the impact on the rights of the various parties of setoff provisions in 11 U.S.C.S. § 553 and former Article 6 of North Carolina's version of the Uniform Commercial Code (NCUCC), N.C. Gen. Stat. § 25-6-101 et. seq. (repealed 2005).
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Court
:
- 11 U.S.C.
In re Bill Heard Enters.
Feb
12
2009
Ruling
Franchisor was entitled to recoupment and setoff from debtor franchisee's amounts.
Procedural posture
A creditor which provided financing for debtors' automobile dealership franchises was granted a security interest in the debtors' assets, and the debtors' franchisor maintained open accounts through which the debtors paid for vehicles, parts, and other items and the franchisor paid amounts due to the debtors. The creditor moved to compel the franchisor to turn over funds in the open accounts, and for summary judgment.
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Court
:
- 11 U.S.C.
In re Semcrude LP
Jan
09
2009
Ruling
Triangular setoff among creditor, debtor and debtor's subsidiaries prohibited due to lack of mutuality.
Procedural posture
A creditor had separate contracts with bankruptcy debtors, subsidiaries with a common corporate parent, and the contracts provided that any amount due to a subsidiary could be offset against amounts owed by other subsidiaries. The creditor owed an amount to one subsidiary but was owed amounts by the other two subsidiaries, and the creditor moved for relief from the automatic bankruptcy stay to effect a triangular setoff.
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Court
:
Comer v. United States SSA (In re Comer)
Apr
18
2008
Ruling
Debtor could not recover valid setoff against tax refund by Social Security Administration.
Procedural posture
Plaintiff chapter 7 debtors filed a complaint against the United States Social Security Administration (SSA), seeking to recover, pursuant to 11 U.S.C.S. § 547 and § 553(b), a setoff by the SSA of the debtors' federal tax refund against indebtedness owed to the SSA for overpayment of Social Security benefits.
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Court
:
- 11 U.S.C.
Kaye v. Carlisle Tire & Wheel Co.
Mar
27
2008
Ruling
Bankruptcy court properly upheld debtor's settlement agreement with creditor executed more than 90 days prepetition.
Procedural posture
Appellant Trustee of the chapter 11 liquidating trust challenged a decision of the United States Bankruptcy Court for the Middle District of Tennessee, Nashville Division, that dismissed the Trustee's claims against appellee creditor. The creditor filed a cross-appeal.
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Court
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