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southern district of florida

Patchett v. Marsh (In re Marsh)

Ruling
Debtor's concealment of proprietary interest in optical company resulted in denial of discharge.
Procedural posture

Plaintiff creditor filed a complaint objecting to a discharge for defendant debtor and objecting to the dischargeability of a debt. The creditor alleged, in part, that a discharge should be denied pursuant to 11 U.S.C. § 727(a)(2), (3) and (4). The court held a hearing and issued findings of fact and conclusions of law.

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Consumer opinion summary, case decided on October 29, 2007 , LexisNexis #1107-117

In re SunCruz Casinos LLC

Ruling
Late filed personal injury claim allowed where prejudice to debtor was outweighed by right to pursue claim.
Procedural posture

The debtor filed for relief under chapter 11. A former employee filed a motion for rehearing on the court's earlier order denying the judgment creditor's motion to allow a late- filed claim and to allow relief from stay. The debtor and the primary secured creditor objected to the motion.

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Commercial opinion summary, case decided on October 26, 2007 , LexisNexis #1107-139

Citicorp Leasing Inc. v. DeMeo (In re DeMeo)

Ruling
State court judgment based on debtor's willful and malicious exercise of dominion and control over creditor's collateral was nondischargeable.
Procedural posture

Plaintiff, a judgment creditor of the debtor, brought a claim asserting that the judgment debt was nondischargeable under 11 U.S.C. § 523(a)(6). The issue before the court is whether collateral estoppel applied to establish that the debt, based on a default judgment, was nondischargeable as a willful and malicious injury.

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Consumer opinion summary, case decided on October 15, 2007 , LexisNexis #1207-009

In re Gonzalez

Ruling
Debtor could not redeem goods gifted to others and not listed in schedules.
Procedural posture

The United States Trustee objected to a chapter 7 debtor's filed a motion to redeem the collateral of a creditor, pursuant to 11 U.S.C. § 722.

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Consumer opinion summary, case decided on September 24, 2007 , LexisNexis #1107-054

In re Continuum Care Servs.

Ruling
Sole shareholder, director and former CEO of involuntary debtor corporation held in contempt for failure to comply with order to compel testimony and production of documents.
Procedural posture

A debtor filed a motion seeking the apprehension of an individual pursuant to Fed. R. Bankr. P. 2005 for his failure to comply with an order to compel testimony and to compel production of documents in an involuntary chapter 11 bankruptcy case.

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Commercial opinion summary, case decided on September 10, 2007 , LexisNexis #1007-095

In re Key Largo Watersports Inc.

Ruling
Lease which was terminated by landlord who received eviction order was not subject to assumption.
Procedural posture

Movant, a landlord, sought relief from stay to allow it to complete prepetition eviction proceedings against defendant debtor, a partnership, that was continuing to occupy premises owned by the landlord and leased to debtor. At issue, inter alia, was whether the lease, which the landlord had terminated, was nonetheless subject to assumption under 11 U.S.C. § 365 and whether debtor's motion to so assume the lease was properly granted.

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Commercial opinion summary, case decided on August 10, 2007 , LexisNexis #1207-005

In re Morgan

Ruling
Above-median debtor could take mortgage-rent expense on Form B22C despite being rent- free.
Procedural posture

After debtor deducted the "Local Standard" amount established by the IRS on account of mortgage/rent expense and referenced in 11 U.S.C. § 707(b)(2)(A)(ii)(I), the trustee objected to confirmation on the ground that no deduction was properly taken because debtor was living rent-free. At issue was the proper reading of section 707 as enacted in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA").

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opinion summary, case decided on August 08, 2007 , LexisNexis #0907-086

Bakst v. Reis (In re Reis)

Ruling
Discharge denied due to debtor's failure to disclose right of inheritance and false testimony that father was still alive.
Procedural posture

The debtors, a husband and wife, filed for relief under chapter 7. Plaintiff trustee sought to deny a discharge, pursuant to 11 U.S.C. § 727(a)(4), to defendant debtor husband because of the husband's failure to disclose on his financial statements that the husband had a potential right of inheritance. The trustee sought summary judgment.

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opinion summary, case decided on July 24, 2007 , LexisNexis #0907-012

In re Franzese

Ruling
Stay extended in debtors'second case in 180 days despite late filing of motion as in best interests of debtors and reorganization.
Procedural posture

The debtors filed for relief 180 days after their earlier case under chapter 13 was dismissed. The debtors filed an emergency motion to continue the automatic stay, pursuant to 11 U.S.C. § 362(c)(3)(B) and (4)(B).

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opinion summary, case decided on July 19, 2007 , LexisNexis #0907-003

Bellavia v. Simonetti (In re Bellavia)

Ruling
Unsecured debt in "no asset" case of which creditor did not receive notice was not excepted from discharge.
Procedural posture

Plaintiff debtors filed for relief under chapter 7. The debtors filed an amended complaint to determine the dischargeability of a debt owed to defendant creditor. The court held a hearing and issued findings of fact and conclusions of law.

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opinion summary, case decided on July 18, 2007 , LexisNexis #0907-028