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eastern district of texas

Gamble-Ledbetter v. Andra Group LP (In re Gamble-Ledbetter)

Ruling
Embezzlement judgment against debtor's bookkeeper was excepted from discharge.
Procedural posture

Plaintiff creditor sought to deny the entry of a chapter 7 discharge in favor of defendant debtor, pursuant to 11 U.S.C.S. § 727(a)(4)(A) or alternatively, sought a determination of whether a debt allegedly owed to it by the debtor was excepted from discharge pursuant to 11 U.S.C.S. § 523(a)(2)(A), (a)(4) or (a)(6).

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Consumer opinion summary, case decided on October 27, 2009 , LexisNexis #1209-047

In re Dugas

Ruling
Corporation's withdrawal of interpled funds from state court registry violated stay.
Procedural posture

Debtors filed a motion seeking an order commanding a corporation to disgorge the funds which it had received from a state court and to direct the transfer to the court registry of all remaining funds deposited with the state court. The court found that the corporation violated the automatic stay and awarded the debtors actual and punitive damages. The court granted the corporation's motion for relief from judgment and vacated the initial order.

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Consumer opinion summary, case decided on October 13, 2009 , LexisNexis #1109-102

Litto Loan Servicing LLP v. Eads (In re Eads)

Ruling
Order discharging lien on debtor's property vacated due to improper service of original objection.
Procedural posture

Plaintiff L.L.P. filed an adversary proceeding against defendant chapter 7 debtor, seeking an order setting aside the court's order discharging a lien on the debtor's house. The debtor opposed the L.L.P.'s action and filed counterclaims alleging that the L.L.P. violated the automatic stay, was in contempt of the court's order sustaining the debtor's objection to a claim the L.L.P. filed, and intentionally inflicted emotional distress on her.

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Consumer opinion summary, case decided on September 18, 2009 , LexisNexis #1109-032

Burford v. Novak (In re Novak)

Ruling
Discharge denied due to pattern of concealment by debtor.
Procedural posture

In this adversary proceeding, plaintiff judgment creditor objected to the dischargeability of defendant debtor's obligations to him as well as, more generally, the entry of a discharge order in the bankruptcy case. The court conducted a trial on the adversary complaint.

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Consumer opinion summary, case decided on September 17, 2009 , LexisNexis #1009-093

Johnson v. National City Mortg. Co. (In re Johnson)

Ruling
Mortgage was deemed unsecured to the extent securing refinance of home equity loan extended in violation of state law.
Procedural posture

Plaintiff chapter 13 debtors filed an adversary proceeding against defendant mortgage company, seeking a judgment that a lien the mortgage company claimed to have on the debtors' homestead was invalid or did not secure the entire indebtedness the mortgage company claimed. The case was tried to the court.

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Consumer opinion summary, case decided on September 11, 2009 , LexisNexis #1009-114

In re Camp

Ruling
Case of debtors living beyond means dismissed based on totality of circumstances.
Procedural posture

Bankruptcy debtors claimed an expense for their former residence, which they were unable to sell after relocating, in the calculation of their disposable income, but the U.S. Trustee asserted that the claimed expense was improper since the debtors intended to abandon the property. The trustee moved to dismiss the debtors' case based on abuse of chapter 7 bankruptcy.

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Consumer opinion summary, case decided on September 04, 2009 , LexisNexis #1009-090

Eagles Sindh Inc. v. Desai (In re Desai)

Ruling
Discharge denied due to debtor's failure to keep records, explain receipt and disposition of large sum or correct false statements and omissions in financial statement.
Procedural posture

Plaintiff creditor brought an adversary complaint against defendant debtor seeking a judgment of nondischargeability under 11 U.S.C.S. § 523(a)(6) or alternatively, a denial of discharge pursuant to 11 U.S.C.S. § 727(a)(3), (a)(4) and (a)(5). The creditor had obtained a state court judgment against the debtor for unpaid rent due under a management and lease agreement for a convenience store the debtor had managed and then abandoned.

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Consumer opinion summary, case decided on September 02, 2009 , LexisNexis #1009-028

Alvarado Land Dev. Inc. v. Sewell (In re Sewell)

Ruling
Company acting as straw man for debtor's co-defendants in action brought by insurer lacked standing as creditor.
Procedural posture

Plaintiff insurer sought a determination of the dischargeability of a debt pursuant to 11 U.S.C.S. § 523(a)(2)(A) and (B) arising from an arbitration award and state court judgment confirming that award. Following an alleged satisfaction of the judgments, the debtors moved to dismiss. Plaintiff land development company (the company) responded to the debtors' motions, claiming to hold the judgments as the insurer's assignee.

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Consumer opinion summary, case decided on September 02, 2009 , LexisNexis #1009-013

Mullican v. Moser

Ruling
IRA became property of the debtors' estate upon bad faith conversion to chapter 7.
Procedural posture

Appellant debtors challenged a judgment of the United States Bankruptcy Court for the Eastern District of Texas, which found that the debtors had converted their case from chapter 13 to chapter 7 in bad faith, and that a large IRA they inherited had become property of the bankruptcy estate on the conversion (not petition) date. Appellee, the chapter 7 trustee, cross-appealed as to the date the IRA became property of the bankruptcy estate.

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Consumer opinion summary, case decided on August 04, 2009 , LexisNexis #0909-064

In re Branch

Ruling
Objection to secured creditor's claim overruled upon production of assignment from original creditor.
Procedural posture

A debtor filed for relief under chapter 13. A bank filed a secured claim, and the debtor filed an objection to the secured claim. The bank filed a motion to strike the debtor's objection.

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Consumer opinion summary, case decided on July 07, 2009 , LexisNexis #0909-079