- 11 U.S.C.
AttorneysTitle Ins. Fund Inc. v. Zecevic (In re Zecevic)
Apr
12
2006
Ruling
Debtor fraud was not shown and motion for default judgment was denied since bank opted not to cancel credit line even after it knew of property sale.
Procedural posture
Plaintiff title insurance company filed an adversary proceeding against defendant debtor seeking a determination that its debt was nondischargeable pursuant to 11 U.S.C. § 523(a)(2)(A). An order of default was entered in favor of the creditor. The creditor sought to prove up its case by affidavit and proposed findings of fact and conclusions of law seeking a judgment by default that its debt was nondischargeable.
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Court
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- 11 U.S.C.
Leibowitz v. Tanglis (In re Tanglis)
Apr
12
2006
Ruling
Debtors were denied discharge since they failed to keep books and records for which their financial condition could be ascertained.
Procedural posture
Plaintiff chapter 7 trustee filed an adversary complaint objecting to defendant debtors discharge under 11 U.S.C. § 727(a)(3), which provided that a debtor shall be granted a discharge unless the debtor failed to keep or preserve books and records from which the debtor's financial condition could be ascertained. The matter was before the court for findings of fact and conclusions of law.
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Court
:
- 11 U.S.C.
Clark v. United States Dept of Educ. (In re Clark)
Apr
11
2006
Ruling
Student loan debt was deemed nondischargeable since debtor's living expenses were excessive and debtor failed to show good faith efforts to repay.
Procedural posture
Plaintiff bankruptcy debtor brought an adversary proceeding against defendant U.S. Department of Education seeking a discharge of the debtor's student loan debt to the government based on undue hardship under 11 U.S.C. § 523(a)(8). The bankruptcy court conducted a trial.
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Court
:
- 11 U.S.C.
In re Kmart Corp.
Apr
11
2006
Ruling
Court ruled that debtor payments made to critical vendors pursuant to court order, which was later reversed, were not exempted from payment recovery action.
Procedural posture
The court had previously approved plaintiff debtors'motion under 11 U.S.C. § 105(a) for authorization to pay prepetition claims of critical trade vendors (critical vendor order). The Court of Appeals for the Seventh Circuit reversed the critical vendor order. The debtors then filed adversary proceedings against defendants, critical vendors, to recover payments made pursuant to the order. The critical vendors moved to dismiss.
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Patel v. Patel (In re Patel)
Apr
06
2006
Ruling
Creditor was denied summary judgment since collateral estoppel did not apply and state court judgment did not establish fraud within meaning of section 523(a).
Procedural posture
Plaintiff creditor filed an adversary proceeding against defendant debtor seeking a determination that the debt owed to him was nondischargeable pursuant to 11 U.S.C. § 523(a)(2)(A) and (a)(6). The creditor moved for summary judgment, contending that because the underlying grounds for finding nondischargeability were decided in a state court proceeding, the debtor should be collaterally estopped from relitigating the issues.
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In re Miotto
Mar
29
2006
Ruling
Debtor was denied a motion to waive the prefiling credit counseling requirement since the debtor failed to file a counseling certification and describe the circumstances of any potential exigent circumstances.
Procedural posture
The matter was before the court on the motion to dismiss the chapter 13 petition brought by the chapter 13 trustee for debtor's failure to comply with 11 U.S.C. § 109(h)(1). In response, debtor filed a motion to waive the counseling requirement.
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NSC Creditor Trust v. BSI Alloys Inc. (In re Natl Steel Co.)
Mar
28
2006
Ruling
Avoidance of prepetition payments was denied since the transfers were deemed made in the ordinary course of business.
Procedural posture
Plaintiff trust brought an adversary proceeding against defendant contractor, seeking to avoid, as preferences, prepetition payments made by the chapter 11 debtor. The contractor asserted a new value defense under 11 U.S.C. § 547(c)(4) and an ordinary court defense under 11 U.S.C. § 547(c)(2). The trust moved for summary judgment as to three transfers. The contractor also moved for summary judgment.
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Court
:
- 11 U.S.C.
Pearson v. Howard (In re Howard)
Mar
22
2006
Ruling
Attorney debtor's judgment debt was deemed nondischargeable since attorney debtor's conduct constituted a fidudiary defalcation.
Procedural posture
Plaintiff creditor brought an adversary proceeding against defendant bankruptcy debtor, an attorney, seeking a declaration that the attorney's judgment debt to the creditor for legal malpractice was not dischargeable under 11 U.S.C. § 523 based on fraud, false representation, fiduciary defalcation, and willful and malicious conduct. The bankruptcy court conducted a trial.
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In re Rybka
Mar
20
2006
Ruling
Court allowed the trustee's fees though not in the full amount due to the trustee's imprecise figures.
Procedural posture
A chapter 7 case was before the court on the final report and account of the chapter 7 trustee, the trustee's application for compensation for her services as trustee under 11 U.S.C. §§ 326 and 330, and the application for compensation of her attorneys under 11 U.S.C. § 330. The Trustee sought fees totaling $8,848. Debtor objected to the amount of fees for the trustee, and to the fees and expenses of the trustee's attorneys.
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Court
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Fetlas Trading Post Inc. v. Granet (In re Fetlas Trading Post Inc.)
Mar
02
2006
Ruling
Court granted debtors partial summary judgment against all but one defendant in an adversary proceeding by finding transfers to these defendants to be avoidable preferential transfers.
Procedural posture
Plaintiffs, chapter 11 debtors, filed an adversary proceeding against six defendants, three financial companies and three individuals, alleging inter alia, (Count I) preferential payments pursuant to 11 U.S.C. § 547(b), (Count II) fraudulent transfers under 11 U.S.C. § 548. The matters were before the court on one of the individual defendant's motion to withdraw admissions, and on debtors'motion for partial summary judgment on Counts I and II.
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Court
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