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northern district of illinois

Ostlund v. Isfan (In re Isfan)

Ruling
Debt was deemed nondischargeable due to the debtor's intent to defraud.
Procedural posture

Plaintiff, the victim of defendant debtor's misrepresentations, brought an adversary complaint against debtor, the president of a construction company, pursuant to 11 U.S.C. § 523(a)(2)(A). The matter was before the court for decision.

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opinion summary, case decided on February 22, 2006 , LexisNexis #0306-052

Merritt v. Rizzo (In re Rizzo)

Ruling
Court held that a defamation judgment against the debtor was dischargeable since the debtor believed the debtor's statement was true and thus did not inflict a willful and malicious injury.
Procedural posture

In defendant debtor's chapter 11 proceeding, plaintiff creditor filed an adversary complaint against the debtor alleging that the state court defamation judgment the creditor had obtained against the debtor was non-dischargeable under 11 U.S.C. § 523(a)(6). The matter was tried before the court.

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opinion summary, case decided on January 27, 2006 , LexisNexis #0206-037

In re Slocum Lake Drainage Dist.

Ruling
Debtor's case was dismissed since the debtor was not authorized under Illinois law to file a petition under chapter 9.
Procedural posture

The debtor, a county drainage district located in the State of Illinois petitioned for bankruptcy relief pursuant to chapter 9. The movant creditor sought dismissal of the petition pursuant to 11 U.S.C. § 921(c), because it contended that the debtor was not authorized under Illinois law to file a petition under chapter 9, as required by 11 U.S.C. § 109(c)(2).

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opinion summary, case decided on January 19, 2006 , LexisNexis #0206-086

In re Habash

Ruling
Proceeding for revocation of discharge properly dismissed as untimely where creditor should have been capable of filing within time limits.
Procedural posture

Appellant creditor filed an adversary complaint to revoke appellee debtor's chapter 7 discharge in the bankruptcy court. The bankruptcy court dismissed the complaint with prejudice and the creditor appealed.

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opinion summary, case decided on January 09, 2006 , LexisNexis #0207-102

In re Issaac

Ruling
Debtor's proposed chapter 13 plan was denied confirmation since the partial liquidation plan was too speculative to be feasible.
Procedural posture

The debtor's chapter 13 plan proposed to satisfy a balloon payment on her mortgage in full, on or before the payment's due date, by way of a refinance or sale of her home. The plan further provided that if the balloon payment was not satisfied on or before its due date, the stay would automatically modify and the creditor would be allowed to pursue its remedies. The debtor moved for confirmation of her plan and the creditor objected.

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opinion summary, case decided on November 16, 2005 , LexisNexis #0406-064

In re Kreisler

Ruling
Creditor's secured claim was deemed allowed but subject to equitable subordination due to creditor insider's inequitable conduct.
Procedural posture

The creditor filed a motion to have its secured claim deemed allowed. The trustee objected to the claim.

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opinion summary, case decided on October 04, 2005 , LexisNexis #0106-078

Conseco Inc. v. Schwartz (In re Conseco Inc.)

Ruling
Discharge and plan injunctions did not bar class action since the insurance contracts at issue in the action were executory contracts that debtor was obligated to perform after discharge.
Procedural posture

Plaintiff, a corporation newly formed to act as the chapter 11 reorganized debtor, filed a motion in its adversary proceeding against defendant litigants, seeking pursuant to 11 U.S.C. § 524 to enforce the discharge injunction and a related injunction contained in the debtor's confirmed plan of reorganization and the confirmation order.

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opinion summary, case decided on September 09, 2005 , LexisNexis #0206-009

Dircks v. Global Fin. Credit L.L.C. (In re Dircks)

Ruling
Court ruled it did not have jurisdiction over debtors'adversary action against a creditor since the trustee had abandoned the claims related to the action and thus had no effect on the estate.
Procedural posture

Plaintiff debtor and the debtor's wife filed a voluntary petition for bankruptcy protection under chapter 7 of the Code. The debtor and the debtor's wife filed an adversary action against defendant creditor to have the court declare as void a prepetition agreement between the parties.

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opinion summary, case decided on August 15, 2005 , LexisNexis #0106-126

In re Brown

Ruling
Code's good faith requirement warranted granting trustee's motion to amend debtor's confirmed chapter 13 plan due to increase in available income.
Procedural posture

Chapter 13 trustee filed a motion for a modification of debtor's confirmed plan to raise the monthly plan payments, on the grounds that his disposable income significantly increased following plan confirmation. Trustee also sought to require debtor to apply the proceeds of a post-confirmation refinancing of his residence as an additional lump sum plan payment.

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opinion summary, case decided on July 07, 2005 , LexisNexis #0106-103