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southern district of illinois

Meyer v. Walters (In re Walters)

Ruling
Debt was nondischargeable due to debtor's false representation as to use of insurance proceeds.
Issue(s)
Was debt to seller of real property, who was owed a balance, nondischargeable on grounds that debtors misrepresented that insurance proceeds would be used to repair hail damage?

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Consumer opinion summary, case decided on October 23, 2014 , LexisNexis #1114-089

In re Altmeyer

Ruling
Trustee's motion for sale of property free and clear denied as property had revested with debtor upon plan confirmation.
Issue(s)
Should trustee's postconfirmation motion for sale of estate property free and clear be granted?

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Consumer opinion summary, case decided on October 02, 2014 , LexisNexis #1014-115

In re Downer

Ruling
Claim for child support arrearage for medical expenses was a nondischargeable domestic support obligation that was entitled to first priority.
Issue(s)
Was claim for past medical expenses on debtor's and former spouse's child that the debtor was previously ordered to pay and for additional healthcare costs for the child not covered by health insurance a nondischargeable domestic support obligation and entitled to priority treatment?

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Consumer opinion summary, case decided on July 16, 2014 , LexisNexis #0814-048

Bruegge v. WBCMT 2007 C 33 Mid Am. Lodging LLC (In re HIE of Effingham LLC)

Ruling
Bankruptcy court erred in granting trustee's motion to modify stipulation and order for abandonment hotel that was proper as originally ordered.
Issue(s)
Did bankruptcy court err in finding that the absence of a maturity date and/or interest rate did not allow the bankruptcy trustee to avoid a mortgage under state law and finding that a hotel's abandonment was ineffective?

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Commercial opinion summary, case decided on March 28, 2014 , LexisNexis #0714-060

Buford v. U.S. Bank Natl Assn (In re Buford)

Ruling
Lien avoided where underlying claim was satisfied by refinancing.
Issue(s)
Could chapter 7 debtor avoid lien where underlying debt was satisfied by debtor's refinancing?

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Consumer opinion summary, case decided on February 12, 2014 , LexisNexis #0314-014

In re McBeth

Ruling
Bankruptcy petition preparer fined for violating consent judgment with improper actions taken on behalf of debtor.
Issue(s)
Should bankruptcy petition preparer be sanctioned for violating consent order permanently barring his operating in that capacity?

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Consumer opinion summary, case decided on January 31, 2014 , LexisNexis #0314-003

Hagan v. Angus Ink Bingman Publns LLC (In re Angus Topics Inc.)

Ruling
Fraudulent transfer proceeding dismissed absent evidence of transfers for less than reasonably equivalent value.
Issue(s)
Did debtor cattle magazine publisher fraudulently transfer assets to its principal.

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Commercial opinion summary, case decided on September 30, 2013 , LexisNexis #1013-092

Zimmerman v. SSA (In re Zimmerman)

Ruling
Social Security Administration's withholding of portion of disability benefits as offset of workers' compensation benefits held not to violate stay on reconsideration.
Procedural posture

Chapter 7 debtor filed a complaint against defendant Social Security Administration (SSA) alleging that the SSA violated the automatic stay and the discharge injunction by wrongfully withholding a portion of his social security disability benefits. The SSA moved for reconsideration of the court's order denying its motion to dismiss for failure to state a claim on which relief could be granted.

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Consumer opinion summary, case decided on July 08, 2013 , LexisNexis #0813-006

Contegra Constr. Co. LLC v. Sutpen (In re Advance Iron Works Inc.)

Ruling
Debtor could not utilize removal process to bring state court litigation before bankruptcy court.
Procedural posture

Creditor filed an adversary proceeding against the corporate debtor's officer and majority shareholder. The debtor removed the case to the court and filed a motion to transfer the case to the home court. Plaintiff filed a motion to remand.

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Commercial opinion summary, case decided on May 22, 2013 , LexisNexis #0613-069

Bruegge v. WBCMT 2007-C33 MID Am. Lodging (In re Estate of HIE of Effingham LLC)

Ruling
Improper abandonment order modified but mortgage on property could not be avoided.
Procedural posture

Bankruptcy trustee brought an adversary proceeding against mortgage creditor seeking to modify a stipulated order which provided for abandonment of a bankruptcy debtor's hotel property based on a settlement upon which the debtor defaulted, and seeking to avoid the creditor's mortgage lien as unenforceable. The trustee moved to modify the stipulated abandonment order and the creditor moved to dismiss the avoidance claim.

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Commercial opinion summary, case decided on March 29, 2013 , LexisNexis #0513-129