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eastern district of texas

Moser v. Bank of Texas (In re Chambers)

Ruling
Assets in spendthrift trust not subject to turnover.
Procedural posture

Chapter 7 trustee filed an adversary proceeding against defendants, a chapter 7 debtor, a bank, and a trust beneficiary, seeking an order under 11 U.S.C.S. § 542(a) requiring the bank to turn over assets it held in a trust the debtor's grandfather created. The bank opposed the trustee's action.

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Consumer opinion summary, case decided on February 25, 2008 , LexisNexis #0608-096

Service Steel Warehouse Co. LP v. Kannard (In re Kannard)

Ruling
Debts to suppliers were dischargeable where debtor contractor was not a fiduciary and did not willfully breach a duty to creditors.
Procedural posture

Plaintiff supplier of materials for a construction project, and intervenor supplier of labor, prosecuted an adversary proceeding against defendant bankruptcy debtor, the sole owner of the contractor for the project, seeking a determination that amounts owing to the suppliers were not dischargeable debts under 11 U.S.C.S. § 523(a)(4) based on fiduciary fraud.

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Commercial opinion summary, case decided on February 22, 2008 , LexisNexis #0308-117

In re Nature Leisure Times LLC

Ruling
Free and clear sale of assets by trustee approved where estate cash flow was insufficient to continue operation of debtor's lodge facility.
Procedural posture

The chapter 7 trustee filed a motion pursuant to 11 U.S.C. § 363(b)(1) to sell assets free and clear of all liens and assign executory contracts and unexpired leases.

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Commercial opinion summary, case decided on December 19, 2007 , LexisNexis #0208-003

In re Richardson

Ruling
Temporary waiver of credit counseling requirement denied due to lack of exigent circumstances.
Procedural posture

A debtor filed for relief under chapter 13. The debtor requested a temporary waiver of the credit counseling requirement that was set forth in 11 U.S.C. § 109(h).

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Consumer opinion summary, case decided on December 07, 2007 , LexisNexis #0108-038

In re Jacobsen

Ruling
Chapter 13 debtor did not have absolute right to voluntary dismissal where best interests of creditors and estate warranted conversion to chapter 7.
Procedural posture

A debtor filed a voluntary petition under chapter 13, and a trustee was appointed to represent the bankruptcy estate. The trustee filed a motion to convert the case to one under chapter 7, and the debtor filed a motion to dismiss the case pursuant to 11 U.S.C. § 1307(b). The trustee opposed the debtor's motion.

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Consumer opinion summary, case decided on December 05, 2007 , LexisNexis #0108-054

In re Hernandez

Ruling
Interest on domestic support obligation was not a priority claim required to be paid under chapter 13 plan.
Procedural posture

Creditor, the State Attorney General, Child Support Division, objected to the proposed confirmation of the debtors' amended chapter 13 plan, asserting that a domestic support obligation, including accruing postpetition interest, constituted a priority claim pursuant to 11 U.S.C. § 507(a)(1). The chapter 13 trustee agreed that the support obligation was a priority claim, but argued that the claim for interest was not so entitled.

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Consumer opinion summary, case decided on November 15, 2007 , LexisNexis #0108-118

In re Washington

Ruling
Bankruptcy court refused to vacate dismissal of chapter 13 case for nonpayment.
Procedural posture

The debtors filed a motion to vacate an order dismissing a chapter 13 bankruptcy case and reinstate the case, pursuant to Fed. R. Bankr. P. 9023 and 11 U.S.C. § 105.

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Consumer opinion summary, case decided on November 08, 2007 , LexisNexis #1207-106

In re Oliveira

Ruling
Security interest in manufactured home but not in underlying real property was not protected from modification.
Procedural posture

Two debtors filed separate actions under chapter 13, and plans for repaying their creditors. A creditor filed an objection to both plans, claiming that the debtors should not be allowed to bifurcate a secured claim the creditor held on each home into secured and unsecured portions because the debtors used the homes as their principal residence.

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Consumer opinion summary, case decided on October 12, 2007 , LexisNexis #0108-017

In re Oliveira

Ruling
Loans secured by security interest in manufactured homes, but not real property on which they were situated, were not protected from bifurcation.
Procedural posture

A creditor objected to the confirmation of debtors' chapter 13 plans proposed in their respective cases. The creditor contended that its debts, which were secured only by perfected security interests in the debtors'manufactured homes but not by the real property upon which the homes were situated, was protected from modification under 11 U.S.C. § 1322(b)(2).

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Consumer opinion summary, case decided on October 11, 2007 , LexisNexis #1107-085

In re Sadler

Ruling
Confirmation denied due to failure to provide evidence for vehicle operation expense and excessive 10% deduction of plan payments.
Procedural posture

A chapter 13 trustee objected to the confirmation of debtors'plan on the grounds that were not applying all of their projected disposable income to make payments to unsecured creditors as required by 11 U.S.C. § 1325(b) and that the plan was not proposed in good faith in violation of 11 U.S.C. § 1325(a)(3).

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Consumer opinion summary, case decided on October 09, 2007 , LexisNexis #1107-089