In re Henry
Jun
01
2006
Ruling
Motion to dismiss was denied since court allowed plan payments to extend beyond maximum period generally allowed.
Procedural posture
The chapter 13 trustee moved to dismiss the debtor's bankruptcy case. The trustee argued that the case should be dismissed because it would take over 60 months to complete, and because the plan was in material default since it will not complete in compliance with the confirmed terms.
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Court
:
- 28 U.S.C.
Federalpha Steel LLC Creditors Trust v. Fed. Pipe & Steel Corp. (In re Federalpha Steel LLC)
May
31
2006
Ruling
Court ruled it lacked jurisdiction over state law claims that were not related to debtor's case and abstained on fraudulent transfer claim since such claim duplicated state court issue.
Procedural posture
Plaintiff, an unsecured creditors'trust created by a confirmed plan of a bankruptcy debtor which was a limited liability company, brought an adversary proceeding against defendants, a former member of the debtor and related entities and individuals, asserting fraudulent and preferential transfer claims and claims under state law. Defendants moved to dismiss and for abstention.
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Court
:
- 11 U.S.C.
Lefelstein v. Donlevy (In re Donlevy)
May
25
2006
Ruling
Amount of mechanic's lien placed on creditor's property due to debtor's defalcation while acting in a fiduciary capacity was deemed nondischargeable.
Procedural posture
Plaintiffs, creditors, filed a complaint against defendant debtor to have a debt held nondischargeable pursuant to 11 U.S.C. § 523(a)(2)(A), (a)(4) and (a)(6). The creditors had contracted with the debtor for remodeling services. They alleged that they gave the debtor a deposit to purchase materials, but that the debtor never paid the supplier for such materials. The supplier subsequently placed a mechanic's lien on the creditors'property.
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Court
:
- 11 U.S.C.
Mangum v. Marshall ( In re Mangum)
May
18
2006
Ruling
Discharge was granted since creditors and trustee could not require debtor to pay more than debtor's plan required.
Procedural posture
Chapter 13 debtor filed an adversary proceeding against the standing trustee, seeking a discharge in her case and a refund of funds the trustee was holding from the sale of her residence. Debtor asserted that she had made all required plan payments and that she was thus entitled to a discharge and the return of the excess sale proceeds. The parties moved for judgment on stipulated facts.
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Court
:
- 11 U.S.C.
Schechter v. 5841 Bldg. Corp. (In re Hansen)
May
12
2006
Ruling
President of a corporate transferee of debtor payments was granted summary judgment on fraudulent transfer claim since the president was not the "initial transferee" and did not benefit from the transfer.
Procedural posture
Plaintiff, the chapter 7 trustee, filed an adversary proceeding under 11 U.S.C. § 548 against defendants, a corporation that was the transferee of debtor's payments, the subsequent recipient of the payments, and the president of both of those entities, to recover debtor's payments as fraudulent transfers. Following the close of discovery, the entities' president moved for summary judgment.
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Court
:
In re S. Beach Secs.
May
05
2006
Ruling
Court reversed dismissal based on bad faith finding and remanded to revisit bad faith filing issue.
Procedural posture
Debtor filed a petition for bankruptcy pursuant to chapter 11. The bankruptcy court dismissed the petition, finding that it had been filed in bad faith under 11 U.S.C. § 1112(b). Debtor appealed the decision.
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Court
:
- 11 U.S.C.
John Hancock Life Ins. Co. v. Litas (In re Litas)
Apr
24
2006
Ruling
Motion to dismiss nondischargeability claim was denied despite the complaint having weak allegations of misrepresentations.
Procedural posture
Plaintiff insurance company sued defendant debtor, alleging that a debt resulting from the debtor's misrepresentations was nondischargeable under 11 U.S.C. § 523(a)(2)(A) or (B). The debtor moved to dismiss the complaint for failure to state a claim.
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Court
:
- 11 U.S.C.
In re Del Monico
Apr
19
2006
Ruling
The disallowance of fees as an administrative claim under section 330 for services rendered after a chapter 11 trustee was appointed precluded debtor's counsel from having any further claim for those services.
Procedural posture
With leave of the bankruptcy court, bankruptcy debtors retained counsel to represent them in their chapter 11 case, and counsel's subsequent application for compensation was denied in part for services rendered after a chapter 11 trustee was appointed. Counsel filed an unsecured proof of claim for its denied fees, and the trustee objected to the claim.
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Court
:
Szilagyi v. JPMorgan Chase Bank N.A. (In re Johnson)
Apr
18
2006
Ruling
Trustee was allowed to avoid bank liens due to recorded release and since bona fide purchaser would not have been on notice of the bank's equitable property interest.
Procedural posture
Plaintiff chapter 7 trustee brought an adversary proceeding against defendant banks, seeking avoidance of a recorded mortgage. The banks filed a counterclaim seeking a declaration that one bank's lien was valid and that it had a valid mortgage lien and security interest in a portion of the proceeds generated by a court-authorized sale of real property. The court held a trial on stipulated facts.
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Court
:
- 11 U.S.C.
OHare Midway Limousine Serv. V. Conroy (In re Conroy)
Apr
17
2006
Ruling
Debtor lacked standing to assert counterclaim since debtor's breach of contract claim accrued prefilng and, thus, was estate property.
Procedural posture
Plaintiffs, creditors and defendant debtor's former employers, objected to the debtor's discharge under 11 U.S.C. § 727(a)(3) and alleged that the debt was nondischargeable under 11 U.S.C. § 523(a)(4) and (6). The debtor filed a counterclaim for an alleged breach of an agreement. The creditors moved to dismiss the counterclaim and to strike a portion of the counterclaim which was construed as a motion to strike a paragraph in the answer.
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Court
: