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northern district of new york

In re McLain

Ruling
Failure to step up payments after vehicle loans were paid off was not grounds for denial of confirmation.
Procedural posture

Debtors moved for confirmation of their proposed chapter 13 plan. The chapter 13 trustee and a creditor both filed objections to confirmation on the grounds that the proposed plan failed to devote all of the debtors'"projected disposable income" to be received in the "applicable commitment period"within the meaning of 11 U.S.C. § 1325(b)(1)(B).

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Consumer opinion summary, case decided on October 24, 2007 , LexisNexis #1107-123

In re Doetsch

Ruling
Debtor's failure to disclose postconversion inheritance was not indicative of bad faith conversion.
Procedural posture

After a bankruptcy debtor's chapter 13 plan was confirmed and the debtor made plan payments for almost two years, the debtor received an inheritance and subsequently converted the case to chapter 13. The U.S. Trustee moved for a determination that the inheritance was property of the debtor's chapter 7 estate under 11 U.S.C. § 348(f)(2) because the debtor converted the case in bad faith.

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Consumer opinion summary, case decided on September 12, 2007 , LexisNexis #1007-097

In re Green

Ruling
Above median debtor with lack of current disposable income was not required to adhere to five year applicable commitment period.
Procedural posture

A bankruptcy debtor proposed a chapter 13 plan which provided for an applicable commitment period ("ACP") of three years, but the bankruptcy trustee asserted that the ACP for the above median debtor under 11 U.S.C. § 1325 was five years unless all allowed unsecured creditors were paid in full. The trustee objected to confirmation of the debtor's plan.

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Consumer opinion summary, case decided on August 29, 2007 , LexisNexis #1207-018

In re Thompson

Ruling
Utility shutoff notice, issued on day notice of discharge was received, but then corrected, did not violate discharge injunction.
Procedural posture

After a city issued a utility shutoff notice to debtors requesting payment on the same day that it received a notice of the debtors'chapter 7 discharge, the debtors sought a finding of contempt and an award of damages and attorneys'fees under 11 U.S.C. § 105(a), alleging that the city violated the discharge injunction under 11 U.S.C. § 524(a).

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opinion summary, case decided on August 21, 2007 , LexisNexis #0907-113

In re Brown

Ruling
State exemption scheme was authorized by bankruptcy code and not in the conflict with federal exemptions.
Procedural posture

In consolidated cases, bankruptcy debtors variously claimed exemptions under state law for cash and a motor vehicle, and one debtor claimed a homestead exemption. A judgment creditor of both debtors objected to the exemptions on the grounds that the state exemptions conflicted with federal bankruptcy law and that the retroactive homestead exemption was an unconstitutional taking.

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opinion summary, case decided on July 23, 2007 , LexisNexis #0807-115

In re James

Ruling
Notices of sale of tax liens containing legend required by Fair Debt Collection Practices Act did not violate stay.
Procedural posture

In separate cases, bankruptcy debtors moved for a finding that communications to the debtors from the former servicer of municipal tax liens against the debtors constituted attempts to collect prepetition debts from the debtors in violation of the automatic bankruptcy stay under 11 U.S.C. § 362(a)(5).

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opinion summary, case decided on July 09, 2007 , LexisNexis #0907-042

In re Reserve Capital Corp.

Ruling
Court ordered settlement and payment of claims against surviving reorganized debtor was not an impermissible post-confimation modification.
Procedural posture

On remand from the district court, certain debtors raised the issue that the proposed relief previously ordered by the bankruptcy court was an impermissible post-confirmation modification of the previously confirmed plan of the one reorganized surviving chapter 11 debtor. The bankruptcy court had ordered the compromise and payment of claims against the surviving reorganized debtor.

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opinion summary, case decided on July 06, 2007 , LexisNexis #0907-068

In re Petrocci

Ruling
Hanging paragraph applied to creditors holding purchase money security interests.
Procedural posture

Under consideration by the court were three contested matters resulting from three separate objections to the Chapter 13 Plans of debtors in the three cases treated in the decision. The objecting secured creditors objected to debtor's plans on the ground that those plans did not provide for the payment in full of the creditors'claims mandated by the so-called "hanging paragraph" of 11 U.S.C. § 1325(a)(9).

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opinion summary, case decided on June 20, 2007 , LexisNexis #0707-116

Rahm v. Halpin (In re Halpin)

Ruling
Unpaid benefit plan contributions were dischargeable where debtor was not shown to have fiduciary responsibility.
Procedural posture

Appellants, members of a union and trustees of various benefit funds, filed an objection to the dischargeability of a debt under 11 U.S.C. § 523(a)(4). The debt consisted of monies that an employer, by and through appellee debtor, in his capacity as president of the employer, was obligated to contribute towards the funds. The Bankruptcy Court for the Northern District of New York discharged the debt. Appellants filed an appeal.

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opinion summary, case decided on June 07, 2007 , LexisNexis #0807-026

In re Sullivan

Ruling
Creditor's inclusion of undisclosed preconfirmation attorneys fees and bankruptcy attorneys'fees in payoff letter demanding payment as prerequisite to closing violated stay.
Procedural posture

Under consideration by the court was a motion filed by debtor pursuant to 11 U.S.C. § 362(h). Claiming violations of the automatic stay provisions of 11 U.S.C. § 362, debtor requested $10,000 in actual, statutory, and punitive damages against a creditor and its law firm, as well as contingent attorney fees, or, in the alternative, $2,000 in attorneys' fees, and an order vacating and discharging any indebtedness claimed by the creditor.

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opinion summary, case decided on April 02, 2007 , LexisNexis #0507-018