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middle district of north carolina

Spell v. Longenecker (In re Longenecker)

Ruling
Creditor was denied summary judgment on debt dischargeability claim since intent had not been decided by jury that awarded creditor punitive damages.
Procedural posture

In an adversary proceeding in bankruptcy, plaintiff judgment creditor moved for summary judgment, alleging that a punitive damages award entered in her favor against defendant debtor fell within the discharge exception of 11 U.S.C. § 523(a)(6) for indebtedness resulting from a willful and malicious injury by the debtor.

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opinion summary, case decided on July 07, 2006 , LexisNexis #0806-126

In re Mayland

Ruling
Court ruled that section 506(a)(2) and thus replacement value provided standard for valuing vehicle for redemption purposes in both chapter 7 and chapter 13 cases.
Procedural posture

The debtors moved for authority to redeem their vehicle for $12,125. The creditor objected. The debtors argued that the proper valuation standard was the replacement value of the vehicle, which they computed by taking 90 percent of the retail value for the vehicle listed by the National Automobile Dealers Association ("NADA") Official Used Car Guide. The creditor argued that the replacement value was the full retail NADA value, which was $13,900.

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opinion summary, case decided on May 26, 2006 , LexisNexis #0606-108

In re Bennet

Ruling
Reaffirmation of debt secured by real property denied as not in best interests of debtor since payments were current and ride-through limits applied only to personal property.
Procedural posture

The debtors and a creditor sought approval of a reaffirmation agreement regarding real property.

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opinion summary, case decided on May 26, 2006 , LexisNexis #1006-041

In re Locklair

Ruling
Trustee was denied motion to reopen case since trustee technically had abandoned surplus from property sale.
Procedural posture

A trustee filed a motion to reopen the debtors'chapter 7 case to allow for the administration of surplus funds resulting from the sale of their real property by a creditor at public auction.

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opinion summary, case decided on May 18, 2006 , LexisNexis #0706-063

In re McNeill

Ruling
Objection to confirmation of debtor's plan was sustained since creditor's claim could not be modified under section 1322(b)(2) and debtor could not timely cure default.
Procedural posture

Creditor held a security interest in the debtor's mobile home as well as a deed of trust to real property on which the mobile home was placed. The creditor filed an objection to confirmation of the debtor's chapter 13 plan. The issue was whether the creditor's claim was secured only by real property that was the debtor's principal residence and, as such, could not be modified under the terms of her plan pursuant to 11 U.S.C. § 1322(b)(2).

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opinion summary, case decided on May 12, 2006 , LexisNexis #0606-101

In re Shaw

Ruling
Confirmation of debtor's plan was denied since the "hanging paragraph" of section 1325(a)(5)(B) applied and that section did not permit bifurcation of the secured claim.
Procedural posture

Debtor filed a petition for bankruptcy protection under chapter 13. The bankruptcy trustee filed a notice and proposed order of confirmation of the debtor's chapter 13 plan. Movant creditor filed objections to the plan.

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opinion summary, case decided on May 11, 2006 , LexisNexis #0606-006

In re Rives

Ruling
Court valued vehicle as of effective date of confirmed plan.
Procedural posture

The debtors filed a petition for relief under chapter 13 and filed a proposed plan of reorganization. The creditor objected to the valuation assessed for the debtors'vehicle in the confirmation plan.

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opinion summary, case decided on May 04, 2006 , LexisNexis #0606-078

In re Barr

Ruling
Objection to plan confirmation was denied since a determination of an above-median-income chapter 13 debtor's ability to pay and whether debtor's plan committed all of debtor's disposable income is determined under section 1325(b) not under section 1325(a)(3)'s good faith requirement.
Procedural posture

Debtor moved for confirmation of her chapter 13 plan and the chapter 13 trustee objected. The trustee contended that the debtor's plan did not comply with the good faith requirement of 11 U.S.C. § 1325(a)(3) based on the amount of the proposed plan payment. The trustee argued that the debtor failed to propose a plan in good faith because, based on her actual income and actual expenses, she had the ability to pay more than proposed in the plan.

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opinion summary, case decided on April 05, 2006 , LexisNexis #0506-040

In re Johnson

Ruling
Debtors could not strip down in a chapter 13 plan a secured creditor's purchase money security loans on vehicles purchased for the debtors'personal use within 910 days of filing.
Procedural posture

Creditor filed an objection to confirmation of the debtors'proposed chapter 13 plan regarding treatment of its secured claim in the debtors'vehicle. The creditor argued that the vehicle debt could not be crammed down under the terms of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

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opinion summary, case decided on February 02, 2006 , LexisNexis #0306-075

In re Ball

Ruling
Debtors were granted automatic stay extension for chapter 13 case filed shortly after chapter 7 discharge since the debtors appeared to be acting in good faith to address the mortgage debt.
Procedural posture

The debtors initiated a proceeding for relief under chapter 13. The debtors had filed two earlier petitions for relief under chapter 13 and under chapter 7, and the debtors had received a chapter 7 discharge in October 2005. The debtors filed a motion to extend the automatic stay, pursuant to 11 U.S.C. § 362(c)(3)(B), the creditor objected to the extension.

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opinion summary, case decided on January 25, 2006 , LexisNexis #0206-026