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northern district of alabama

In re Cunningham

Ruling
State court larceny judgment was nondischargeable.
Procedural posture

Creditor filed an adversary proceeding to determine whether a state court judgment against defendant, a chapter 13 debtor, was non-dischargeable under 11 U.S.C.S. § 523(a).

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Consumer opinion summary, case decided on November 14, 2012 , LexisNexis #1212-017

Toffel v. Gardner (In re Gardner)

Ruling
Conveyances made to avoid consequences of several lawsuits avoided as fraudulent.
Procedural posture

Chapter 7 trustee filed a complaint against a debtor's wife and son seeking to avoid and set aside certain real estate transfers as fraudulent conveyances pursuant to 11 U.S.C.S. § 544(b) and Ala. Code §§ 8-9A-4(a) and (c) and 8-9A-5(a) and (b). The trustee also sought a judgment against the wife for her half of the purchase price she received when she sold one of the properties transferred to a good faith purchaser.

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Consumer opinion summary, case decided on September 28, 2012 , LexisNexis #1212-023

Allen v. Scott (In re Scott)

Ruling
Debt based on unjust enrichment and breach of fiduciary duty to executrix of debtor's deceased relative's executrix was nondischargeable.
Procedural posture

The executrix of the parties' common relative filed a complaint asserting state law claims for conversion, undue influence, wantonness, felonious injury, and unjust enrichment. The executrix also sought nondischargeability and revocation of discharge of defendant, a chapter 7 debtor, who held a power of attorney from the decedent and had been appointed her guardian and conservator under Alabama law.

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Consumer opinion summary, case decided on September 27, 2012 , LexisNexis #1212-070

Hollingsworth v. Option One Mortg. Corp. (In re Hollingsworth)

Ruling
Mortgagee's failure to disclose small charges in proofs of claim did not render claims objectionable.
Procedural posture

Plaintiffs, chapter 13 debtors, filed an adversary complaint in their second bankruptcy case, asserting that, while they agreed to make monthly payments on their arrearage to defendant mortgagee pursuant to 11 U.S.C.S. § 1322(b)(5), certain charges the mortgagee made after their first petition was filed were improper and violated 11 U.S.C.S. §§ 502, 506(b), and Fed. R. Bankr. P. 3001 or 2016(a).

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Consumer opinion summary, case decided on September 25, 2012 , LexisNexis #1012-075

Timmons v. Rose Acceptance Inc. (In re Timmons)

Ruling
Debtor granted temporary relief from order allowing foreclosure to proceed due to improved circumstances.
Procedural posture

Plaintiff chapter 13 debtor filed an adversary proceeding against defendant creditor and sought an order restraining the creditor from selling his home in a foreclosure sale. The court held a hearing on the debtor's motion.

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Consumer opinion summary, case decided on September 20, 2012 , LexisNexis #1012-115

Ashley v. University of Ala. Health Servs. Found. PC (In re Ashley)

Ruling
Actual and punitive damages awarded where creditor sought to collect debt in total and complete disregard for discharge injunction.
Procedural posture

This adversary proceeding alleging violation of the discharge injunction, 11 U.S.C.S. § 524(a)(2), came before the court for a hearing to prove damages following entry of a Default Judgment in favor of plaintiff debtor and against defendant creditor.

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Consumer opinion summary, case decided on September 06, 2012 , LexisNexis #1012-021

In re Williams

Ruling
Relief from stay granted to allow creditor to proceed against jointly owned property in absence of co-debtor stay.
Procedural posture

Pursuant to 11 U.S.C.S. § 362(d), a creditor filed a motion to lift the stay on real property that was owned by a chapter 11 debtor as a joint tenant with right of survivorship.

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Consumer opinion summary, case decided on July 30, 2012 , LexisNexis #0812-074

In re Edwards

Ruling
Case ordered converted to chapter 13 or dismissed for abuse due to ability to fund plan and lack of special circumstances.
Procedural posture

Debtors, a husband and wife, filed a petition under chapter 7 of the Bankruptcy Code, and a bankruptcy administrator filed a motion to dismiss the debtor's case pursuant to 11 U.S.C.S. § 707(b)(1) and (3), or to convert it to one under chapter 13 of the Bankruptcy Code with the debtors' consent. The court held a hearing on the administrator's motion.

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Consumer opinion summary, case decided on July 25, 2012 , LexisNexis #0812-059

In re Tinney

Ruling
Inheritance received more than 180 days after petition date was not property of the estate.
Procedural posture

Debtor filed a petition under chapter 13 of the Bankruptcy Code, and the court confirmed the debtor's bankruptcy plan and appointed a trustee to administer the plan. The trustee filed a motion to modify the plan so that it required the debtor to use assets she inherited from her mother to pay unsecured creditors' claims. The debtor opposed the motion.

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Consumer opinion summary, case decided on July 09, 2012 , LexisNexis #0912-027

Bank of N.Y. Mellon v. Jefferson County (In re Jefferson County)

Ruling
County ordered to remit revenue from sewer system to receiver except for amount necessary for actual operations.
Procedural posture

Plaintiff banks and insurance companies filed an adversary proceeding against defendant Jefferson County, Alabama, seeking a judgment declaring that the County was not allowed to withhold payments of money it claimed it needed to operate a sewer system. The case was tried to the court.

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Commercial opinion summary, case decided on June 29, 2012 , LexisNexis #0912-133