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middle district of north carolina

Lawyers Title Ins. Co. v. Chesson (In re Chesson)

Ruling
Claim under state unfair trade practices law was nondischargeable.
Procedural posture

Plaintiff insurer filed a complaint against defendant chapter 7 debtor, alleging a claim based upon common law fraud on the part of the debtor and a claim for unfair and deceptive trade practices under the Unfair and Deceptive Trade Practices Act (UDTPA), N.C. Gen. Stat. § 75-1.1 et seq., and seeking a determination that the damages recoverable pursuant to these claims were nondischargeable pursuant to 11 U.S.C.S. § 523(a)(2)(B).

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Consumer opinion summary, case decided on October 09, 2012 , LexisNexis #1112-015

Groves v. Duke (In re Duke)

Ruling
Dischargeability complaint was untimely where motion to extend was not filed prior to expiration of deadline.
Procedural posture

Debtor moved for an order dismissing, as untimely, a complaint filed by ex- employee for a determination that her claim against debtor was nondischargeable per 11 U.S.C.S. § 523. The issue was the effect of Fed. R. Bankr. P. 4007 and Fed. R. Bankr. P. 9006 on the question of whether the deadline could be extended.

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Consumer opinion summary, case decided on September 28, 2012 , LexisNexis #1212-069

In re Graves

Ruling
Debtor's law firm ordered to disgorge fees paid during preference period.
Procedural posture

Movant bankruptcy administrator filed a motion seeking a determination of whether a law firm charged a chapter 13 debtor a reasonable fee, and whether the debtor's attorney was disinterested. The motion was prompted by the fact the debtor's statement of financial affairs showed that he paid the attorney $1,400 less than 90 days before he declared bankruptcy for "attorney fee from previous case."

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Consumer opinion summary, case decided on September 12, 2012 , LexisNexis #1012-053

In re Swiggert

Ruling
Case dismissed for lack of good faith where debtor had no assets, limited income and lack of realistic opportunity for reorganization.
Procedural posture

A creditor of a bankruptcy debtor was pursuing a civil action against the debtor in state court when the debtor filed his chapter 11 bankruptcy petition which stayed the action. The creditor moved to dismiss the debtor's case for lack of good faith.

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Consumer opinion summary, case decided on September 10, 2012 , LexisNexis #1012-059

In re Gallo

Ruling
Creditors sanctioned for persisting in collection efforts despite actual notice of chapter 13 case.
Procedural posture

Debtor moved for sanctions, including damages and attorney's fees, against respondent creditors under 11 U.S.C.S. § 362(k) on claims that they persisted in efforts to collect amounts owed by debtor on a deed of trust despite the fact that they had actual notice of the fact that debtor had filed a chapter 13 case and that such conduct violated the automatic stay in § 362.

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Consumer opinion summary, case decided on September 10, 2012 , LexisNexis #1012-046

Walton Holding of NC LLC v. Young (In re Young)

Ruling
Creditor landlord had no basis for claim for property, not owned by debtor, that was removed from leased premises.
Procedural posture

Creditor filed a complaint against chapter 7 debtor seeking a determination that its claim was not dischargeable pursuant to 11 U.S.C.S. § 523(a)(2) and (a)(6).

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Consumer opinion summary, case decided on August 17, 2012 , LexisNexis #0912-044

West v. Davis (In re Davis)

Ruling
Discharge denied after random audit revealed inaccurate information and material misstatements in schedules.
Procedural posture

Plaintiff bankruptcy administrator filed an adversary proceeding against defendant chapter 7 debtors, seeking an order under 11 U.S.C.S. § 727(a)(4) and (5) which denied the debtors' discharge. The administrator filed a motion for summary judgment, which the debtors did not answer.

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Consumer opinion summary, case decided on August 10, 2012 , LexisNexis #0912-019

Bynum v. CitiMortgage Inc. (In re Bynum)

Ruling
Deed of trust did not create security interest in escrow funds but solely against residence, precluding modification.
Procedural posture

Plaintiff bankruptcy debtors brought an adversary proceeding against defendant creditor secured by a deed of trust against the debtors' principal residence, seeking a valuation of the residence for purposes of modifying the creditor's secured claim into secured and unsecured claims. The creditor moved to dismiss the complaint.

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Consumer opinion summary, case decided on July 20, 2012 , LexisNexis #0812-096

Mullins v. Wells Fargo Bank (In re Mullins)

Ruling
Secured claim based on unambiguous deed of trust could not be modified.
Procedural posture

Chapter 13 debtors, who owned and resided in a residence, alleged that the value of the residence does not exceed $41,000, and moved to modify the secured claim of defendant mortgagee, by reducing the value of its secured claim to $41,000, pursuant to 11 U.S.C.S. § 1322(b)(2).

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Consumer opinion summary, case decided on July 03, 2012 , LexisNexis #0712-136

Schafer v. Nextiraone Fed. LLC

Ruling
Adversary proceeding that could alter debtor's rights and impact administration was related to debtor's bankruptcy.
Procedural posture

Defendant filed a motion to withdraw the reference under 28 U.S.C.S. § 157(d). Chapter 7 trustee opposed the motion.

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Commercial opinion summary, case decided on June 18, 2012 , LexisNexis #0712-065