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In re Engman

Ruling
Trustee could not settle with lienholders over objections of debtor and unsecured creditors.
Procedural posture

A chapter 7 trustee sought approval pursuant to Fed. R. Bankr. P. 9019(a) of settlements reached by him with various lienholders and the co-owners of property in which the bankruptcy estate also held an interest, and the authority to make distributions on account of those liens and co-interests. The debtor and an unsecured creditor objected. The court issued a scheduling order setting out the standard to be used in considering the request.

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Consumer opinion summary, case decided on October 08, 2008 , LexisNexis #0109-104

Olson v. Aegis Mortg. Corp. (In re Bloxxsom)

Ruling
Lot encumbered by mortgage but mistakenly not administered was abandoned upon closure of case.
Procedural posture

Bankruptcy debtors owned two adjacent lots of real property, and plaintiff bankruptcy trustee discovered after the debtors' case was closed that a mortgage intended to provide security based on both lots mistakenly did not include one lot. The trustee reopened the case and brought an adversary proceeding against defendant mortgage creditors to avoid their lien on the omitted lot, and the creditors moved to dismiss the complaint.

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Consumer opinion summary, case decided on May 30, 2008 , LexisNexis #0708-104

In re Shead

Ruling
Case properly dismissed as filed in bad faith as part of a two-party dispute.
Procedural posture

A debtor filed for relief under chapter 13 of the Bankruptcy Code. The court withdrew the reference and issued an opinion concerning whether or not the debtor's petition should be dismissed for the debtor's bad faith.

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Consumer opinion summary, case decided on May 06, 2008 , LexisNexis #0608-021

National Sign & Signal v. Livingston (In re Livingston)

Ruling
Deceit that did not cause harm to creditor did not result in nondischargeability.
Procedural posture

Plaintiff, a judgment creditor and the former employer of the debtor, objected to the dischargeability of its claim against the debtor, based upon the grounds enumerated in 11 U.S.C. § 523(a)(2)(A), (a)(4) and (a)(6).

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Consumer opinion summary, case decided on December 18, 2007 , LexisNexis #0108-095

Moyer v. ABN AMRO Mortg. Group Inc. (In re Feringa)

Ruling
Trustee's ability to avoid mortgage was not subject to abandonment.
Procedural posture

Plaintiff, the chapter 7 trustee, commenced an adversary proceeding against defendant creditor, seeking to avoid a mortgage the creditor claimed against the debtors'residence, as a preference pursuant to 11 U.S.C. §§ 547 and 550. The creditor asserted the trustee lacked standing due to the running of the limitations period imposed by 11 U.S.C. § 546(a), that the claim had been abandoned when the trustee caused the case to be dismissed.

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Consumer opinion summary, case decided on October 03, 2007 , LexisNexis #1107-012

In re Brown

Ruling
Trustee's objection to homestead exemption was moot where house had been removed from estate by confirmation process.
Procedural posture

A chapter 7 trustee objected to the debtor's claimed exemption in the debtor's home.

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opinion summary, case decided on September 05, 2007 , LexisNexis #1007-033

In re McGillis

Ruling
Confirmation denied due to improper calculation of disposable income.
Procedural posture

Debtors moved to confirm their chapter 13 plan over the chapter 13 trustee's objection. The chapter 13 trustee objected because the debtors allegedly were not committing to their unsecured creditors all of their disposable income as required by 11 U.S.C. § 1325(b). The chapter 13 trustee also asserts that the debtors'plan was not proposed in good faith.

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opinion summary, case decided on May 18, 2007 , LexisNexis #0607-117

In re Sanchez

Ruling
Workers' compensation settlement proceeds were exempt only to the extent necessary for the support of debtor and dependents.
Procedural posture

The debtor filed for relief under chapter 7 and claimed that two bank accounts were exempt. The trustee objected to the claimed exemptions and filed a motion for summary judgment on the objections.

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opinion summary, case decided on January 31, 2007 , LexisNexis #0407-018

In re Van Stelle

Ruling
Insurance proceeds from totalled vehicle were not property of the estate and could not be used to purchase replacement vehicle without creditor's consent.
Procedural posture

Before bankruptcy debtors'chapter 13 plan was confirmed, the debtors'vehicle which was subject to a security interest was in an accident and declared a total loss. After the plan was confirmed, the bankruptcy trustee received an insurance settlement check, payable to both the debtors and the secured creditor, and the debtors moved for leave to use the insurance proceeds to purchase a replacement vehicle.

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opinion summary, case decided on October 04, 2006 , LexisNexis #1106-082

In re Wallace In re Wallace

Ruling
State could not create a customized set of bankruptcy exemptions for residents.
Procedural posture

Chapter 7 trustee filed an objection to debtor's claimed exemption in her undivided one-half interest in real property pursuant to Mich. Comp. Laws § 600.5451(1)(n), contending that section 600.5451(1)(n) was unconstitutional because it violated the Supremacy Clause, U.S. Const. art. VI, cl. 2.

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opinion summary, case decided on August 09, 2006 , LexisNexis #1006-012