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In re Welch

Aug
04
2006
Ruling
Income of non-filing spouse was relevant to substantial abuse detemination but did not ultimately provide grounds for dismissal.
Procedural posture

After the debtor filed a chapter 7 bankruptcy petition, the United States Trustee filed a motion to dismiss the chapter 7 proceeding under former 11 U.S.C. § 707(b) (amended 2005). The chapter 7 trustee also sued defendant creditor, seeking to avoid a security interest in a vehicle pursuant to 11 U.S.C. § 544(a). The creditor moved for summary judgment.

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opinion summary, case decided on August 04, 2006 , LexisNexis #0906-065
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In re St. Joseph Cleaners

Jul
12
2006
Ruling
Chapter 7 trustee's motion for disgorgement of portion of chapter 11 counsel's retainer paid prior to conversion was denied since confirmed plan payments were final.
Procedural posture

A bankruptcy debtor's chapter 11 case was converted to chapter 7 and the chapter 11 counsel for the debtor received an award of fees which included the balance of the prepetition retainer paid by the debtor. The chapter 7 trustee subsequently discovered that the debtor's estate had insufficient funds to pay the chapter 11 administrative claims, and the trustee moved for disgorgement of a portion of counsel's retainer.

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opinion summary, case decided on July 12, 2006 , LexisNexis #0806-064
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In re Wallace

Apr
09
2006
Ruling
Congress did not authorize states to create separate bankruptcy specific exemption schemes.
Procedural posture

Debtor filed a chapter 7 bankruptcy petition, claiming that her interest in a particular property was exempt under Mich. Comp. Laws § 600.5451(1)(n). The chapter 7 trustee filed a timely objection to the claimed exemption, contending that Mich. Comp. Laws § 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 April 09, 2006 , LexisNexis #0906-057
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In re Mars

Mar
28
2006
Ruling
Dismissal of debtor's case was denied since debtor did not have to choose chapter 13 over chapter 7 solely because a payment plan was feasible.
Procedural posture

The trustee filed a motion to dismiss debtors' chapter 7 bankruptcy proceeding, pursuant to former 11 U.S.C. § 707(b), on the basis that debtors were capable of funding a chapter 13 plan that would pay a significant amount to their unsecured priority creditors.

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opinion summary, case decided on March 28, 2006 , LexisNexis #0406-132
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In re Lucre Inc.

Mar
20
2006
Ruling
Automatic stay was modified so that a creditor could move forward with efforts to relieve itself from two injunctions but not with regard to other issues including setoff rights.
Procedural posture

In a chapter 11 matter, an alleged creditor that furnished the use of its network moved for relief from an automatic stay with respect to its interconnection agreement with debtor telecommunications company. The creditor requested that the automatic stay be modified so that it could attempt to dissolve state court injunctions that were preventing it from discontinuing services to debtor notwithstanding debtor's alleged breach of the agreement.

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opinion summary, case decided on March 20, 2006 , LexisNexis #0406-002
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In re Albion Health Servs.

Mar
16
2006
Ruling
Court ruled that a state's claim for reimbursement of unemployment benefits to the debtor's former employees was not an excise tax entitled to priority.
Procedural posture

A bankruptcy debtor, a not-for-profit corporation that owned a hospital, ceased operation before filing its bankruptcy petition and its former employees received unemployment compensation from the state of Michigan. The state asserted a claim for reimbursement of the unemployment benefits which it paid, and the trustee objected to the allowance of the claim as a tax priority under 11 U.S.C. § 507(a)(8). The trustee moved for summary judgment.

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opinion summary, case decided on March 16, 2006 , LexisNexis #0406-017
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