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western district of kentucky

ELM Rd. Dev. Co. v. Buckeye Retirement Co. LLC Ltd. (In re Hake)

Ruling
Trustee's sale of debtor's property interests upheld.
Procedural posture

Appellants, debtor and shareholders, appealed from an order of the United States Bankruptcy Court for the Northern District of Ohio, Eastern Division at Youngstown, that granted summary judgment in favor of defendants, transferees, that certain carve-out assets were property of the bankruptcy estate and that restrictions on a the debtor's sale constituted an unenforceable restraint on alienation of property under Ohio law.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on December 04, 2009 , LexisNexis #1209-137

In re Resource Energy Techs. LLC

Ruling
Creditor did not violate stay by pursuing discovery against members of debtor LLC.
Procedural posture

A creditor of a bankruptcy debtor, a limited liability company, brought an action in state court against the debtor and its principal members which was stayed with regard to the debtor when the debtor filed its bankruptcy petition. The debtor moved to hold the creditor in contempt for pursuing discovery from the members in the state action in violation of the automatic bankruptcy stay.

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Commercial opinion summary, case decided on December 01, 2009 , LexisNexis #1209-111

In re Smith

Ruling
Case dismissed due to debtors' inability to reorganize, bad faith and dishonesty.
Procedural posture

Chapter 11 individual debtors applied to employ an attorney and to pursue counterclaims against a principal creditor; the principal creditor moved to dismiss the debtor wife's bankruptcy case, to institute contempt proceedings; and the court sua sponte moved for both debtors to show cause why the case should not be dismissed, converted to chapter 7, or a trustee appointed.

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Consumer opinion summary, case decided on October 26, 2009 , LexisNexis #1209-058

Palmer v. Washington Mut. Bank (In re Ritchie)

Ruling
Creditor's alleged interest in debtor's manufactured home properly avoided by bankruptcy court in accordance with state law.
Procedural posture

Creditor challenged an order of the bankruptcy court for the Eastern District of Kentucky granting the motion for summary judgment of plaintiff, the chapter 7 Trustee, and avoiding the creditor's lien on debtor's manufactured home.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on September 24, 2009 , LexisNexis #1009-085

Kappell v. Bunch (In re Bunch)

Ruling
Discharge denied due to debtor's failure to provide business records and failure to disclose assets.
Procedural posture

Plaintiff creditors brought an adversary proceeding against defendant bankruptcy debtors seeking denial of the debtors' discharge under 11 U.S.C.S. § 727 based on the debtors' inaccurate records and false statements, and seeking exception of the debt to the creditors from a remodeling project from discharge under 11 U.S.C.S. § 523 based on the debtors' fraud.

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Consumer opinion summary, case decided on September 21, 2009 , LexisNexis #1109-057

In re Blose

Ruling
Employment discrimination action dismissed as not disclosed in debtor's bankruptcy.
Procedural posture

Movant, the former employer of one of the debtors, moved to dismiss a state court civil action filed by the debtor against it for employment discrimination, asserting that the debtors had failed to disclose the state law claim in their bankruptcy pleadings and were judicially estopped from asserting the claim, or alternatively, that the claim was property of the bankruptcy estate.

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Consumer opinion summary, case decided on September 14, 2009 , LexisNexis #1009-065

In re McKinley

Ruling
Lien of debtor's former spouse could be stripped where there was no equity in the subject property.
Procedural posture

The debtors filed for relief under chapter 13 of the Bankruptcy Code. The debtors filed a motion to avoid a lien asserted on property by the debtor's former wife. Further the debtors objected to a claim asserted by the former wife in the proceedings.

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Consumer opinion summary, case decided on June 10, 2009 , LexisNexis #0709-087

Miller v. A&M Oil Co. (In re Smith Mining & Material LLC)

Ruling
Pre- and postpetition transfers by debtor to creditor fuel supplier avoided to extent not covered by new value defense.
Procedural posture

A debtor filed for relief under chapter 11 of the Bankruptcy Code. Plaintiff, a chapter 11 trustee, filed an action against defendant company, alleging that transfers made to the company were preferential and could be avoided and recovered under 11 U.S.C.S. §§§ 544, 547, 549, and 550. The court issued findings of fact and conclusions of law.

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Commercial opinion summary, case decided on May 19, 2009 , LexisNexis #0709-091

In re McFadden

Ruling
Bankruptcy petition preparer fined, but not enjoined from filing further petitions, for doing more than simply filling out petitions.
Procedural posture

A debtor filed for relief under chapter 7 of the Bankruptcy Code, and a petition was prepared on his behalf by a preparer. The court issued a sua sponte order directing the preparer to appear and show cause why she should not be enjoined from filing further petitions or other papers with the court for engaging in the unauthorized practice of law and violating 11 U.S.C.S. § 110, why $400 paid to her should not be refunded.

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Consumer opinion summary, case decided on May 14, 2009 , LexisNexis #0709-075

Faruqi v. Anjum (In re Anjum)

Ruling
Debt arising from debtor's failure to appear at civil trial was dischargeable absent proof of willful or malicious conduct.
Procedural posture

The debtor's former spouse filed a complaint to determine the nondischargeability of a debt pursuant to 11 U.S.C.S. § 523(a)(6). At issue was whether the conduct underlying a determination that debtor was liable to spouse for certain attorneys fees in a state court proceeding was of the type properly sanctioned under § 523(a)(6).

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Consumer opinion summary, case decided on March 12, 2009 , LexisNexis #0409-050