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western district of virginia

In re Glebe Inc.

Ruling
Creditor not entitled to administrative expense claim for postpetition therapy services provided to debtor rehabilitation center's residents.
Procedural posture

Debtor corporation filed a petition under chapter 11 of the Bankruptcy Code, and a claimant filed a claim in the amount of $19,000 against the debtor's bankruptcy estate and asked the court to treat its claim as an administrative expense claim under 11 U.S.C.S. § 503. The claimant's motion was unopposed.

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Commercial opinion summary, case decided on May 03, 2011 , LexisNexis #0911-081

In re Burnett

Ruling
Prepetition purchaser of property occupied by debtor granted relief from stay to proceed with eviction.
Procedural posture

Debtor filed a petition under Chapter 11 of the Bankruptcy Code, and movant, a homes company that acquired title to real property the debtor occupied, filed a motion seeking relief under 11 U.S.C.S. § 362 from the automatic stay so it could proceed to state court and evict the debtor. The debtor filed an objection to the motion, and the court held a hearing on the motion and the debtor's objection.

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Commercial opinion summary, case decided on April 28, 2011 , LexisNexis #0611-112

Mitchem v. Branch Banking & Trust Co. (In re Mitchem)

Ruling
Note partially secured by equity in debtor's property could not be avoided.
Procedural posture

Chapter 13 debtors filed complaints against defendant creditor seeking to have a note declared to be unsecured under 11 U.S.C.S. § 506(a) and to have the note avoided under 11 U.S.C.S. § 506(d). The debtors contended that the value of the property was less than the amount owed on a promissory note and first deed of trust.

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Consumer opinion summary, case decided on April 01, 2011 , LexisNexis #0911-082

In re Campbell

Ruling
Creditors were improperly granted an extension of time to file nondischargeability complaint.
Procedural posture

Creditors who were not listed on debtors' schedules found out about debtors' bankruptcy 26 days before the bar date for filing a nondischargeability proceeding. Creditors filed for an extension of time to file a complaint after expiration of the bar date, which was granted by the bankruptcy court.

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Consumer opinion summary, case decided on March 11, 2011 , LexisNexis #0411-083

In re Neilsen

Ruling
Relief from stay to allow return of garnished wages to creditor and to allow creditor to proceed with collection efforts related to a nondischargeable debt denied.
Procedural posture

A creditor filed a motion that the court treated as two separate motions: (1) a motion to reconsider a prior order denying the creditor's motion for relief from stay and objection to motion to quash garnishment; and (2) a motion for relief from the automatic stay pursuant to 11 U.S.C.S. § 362(d) so that garnished wages could be returned to him and so that he could proceed with collection efforts related to a nondischargeable debt.

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Consumer opinion summary, case decided on February 07, 2011 , LexisNexis #0211-109

Harris v. Banks (In re Banks)

Ruling
Garnished wages in which debtor failed to properly claim exemption was property of the estate.
Procedural posture

A judgment creditor filed a motion for entry of order for a notice of assets. The court treated the motion as an objection to a Chapter 7 debtor's claim of exemptions, which was governed by Fed. R. Bankr. P. 4003(b). The motion challenged the debtor's eligibility for a homestead exemption in garnished wages and in the debtor's 2010 federal tax return under Va. Code Ann. § 34-17(B).

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Consumer opinion summary, case decided on January 25, 2011 , LexisNexis #0211-122

Hines v. Wolfe (In re Stillwater Inc.)

Ruling
Real property taxes assessed postpetition on real property held by the debtor's estate constituted administrative expenses.
Procedural posture

Movant, a county treasurer, requested that the full value of accrued real property taxes on property of the estate of a Chapter 7 debtor be allowed as an administrative expense under 11 U.S.C.S. § 503(b)(1)(B).

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Commercial opinion summary, case decided on January 25, 2011 , LexisNexis #0211-139

Foreign Affairs Serv. V. Pittman (In re Pittman)

Ruling
Judgment debt was nondischargeable where state court adjudicated necessary elements.
Procedural posture

Plaintiff creditor filed a complaint against defendant Chapter 7 debtors seeking a determination that a state court judgment was nondischargeable under various provisions of 11 U.S.C.S. § 523(a). The creditor filed a motion for summary judgment on the grounds that the doctrine of collateral estoppel precluded the debtors from relitigating factual issues previously decided by the state court.

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Consumer opinion summary, case decided on December 15, 2010 , LexisNexis #0211-050

Branch Bank & Trust Co. v. DelFosse (In re DelFosse)

Ruling
Real estate held by revocable living trust of which debtor was a trustor and primary beneficiary was property of the estate.
Procedural posture

Plaintiff bank filed a complaint and defendant debtors answered the complaint. At issue was whether a certain parcel of real estate was property of the estate under 11 U.S.C.S. § 541(a)(1). The debtors created a living trust. One debtor was the primary beneficiary. Acting as trustee for the trust, the debtors acquired fee simple legal title to the property pursuant to a deed from a Virginia general partnership (Trust Deed-In).

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Consumer opinion summary, case decided on December 09, 2010 , LexisNexis #0211-058

Brown Bank I LP v. Ebersole (In re Ebersole)

Ruling
Relief from stay denied on condition that debtor continue timely payments on note.
Procedural posture

Ceditor, a putative holder of a mortgage note secured by pro se respondent bankruptcy debtor's real property, asserted that the debtor failed to provide adequate protection for the mortgage debt, and that the debtor lacked any equity in the property. The creditor moved for relief from the automatic bankruptcy stay pursuant to 11 U.S.C.S. § 362(d)(1), (2) to allow foreclosure against the property.

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Consumer opinion summary, case decided on December 01, 2010 , LexisNexis #0111-041