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eastern district of arkansas

In re Living Hope Southeast LLC

Ruling
Relief from stay to pursue litigation against debtor denied given low likelihood of success and possible negative impact on other creditors and value of estate.
Issue(s)
Should relief from stay be granted to allow doctor to pursue case arising out of breach of lease and damage to property against debtor provider of outpatient psychiatric services?

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Commercial opinion summary, case decided on January 29, 2014 , LexisNexis #0314-045

Shaffer v. Bird (In re Bird)

Ruling
Debt was nondischargeable due to debtor attorney's duplicate billings when acting as chapter 11 trustee that breached fiduciary duty to creditor's bankruptcy estate.
Issue(s)
Was debt owed by debtor for fraud, due to excessive and duplicate fees charged when acting as chapter 11 trustee, nondischargeable due to breach of fiduciary duty.

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Consumer opinion summary, case decided on January 07, 2014 , LexisNexis #0114-123

Farmers Bank & Trust Co. v. Chickshaw Props. LLC (In re Burrow)

Ruling
Bankruptcy court abstained from and remanded proceeding for determination of priority of mortgages on property owned by debtor's LLC.
Issue(s)
Should bankruptcy court abstain from hearing proceeding for determination of priority of mortgages on property owned by debtor's LLC?

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Consumer opinion summary, case decided on December 07, 2013 , LexisNexis #0314-136

In re Ballinger

Ruling
Judgment lien in favor of debtor's deceased spouse's former spouse impaired debtor's homestead exemption and could be avoided.
Issue(s)
Was lien securing probate court judgment in favor of debtor's deceased spouse's former spouse avoidable as impairing debtor's homestead exemption.

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Consumer opinion summary, case decided on November 25, 2013 , LexisNexis #0114-119

In re Doug Wilson Ins. Agency Inc.

Ruling
Relief from stay granted due to substantial unpaid prepetition arrearages and unsubstantiated, insufficient, future income.
Procedural posture

Debtor filed a voluntary petition for relief under the provisions of chapter 11 of the United States Bankruptcy Code. Creditor bank filed a motion for relief from the automatic stay concerning two tracts of real property, a rent house and the strip mall.

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Commercial opinion summary, case decided on July 16, 2013 , LexisNexis #0813-046

Calderon v. Bank of Am. Corp. (In re Calderon)

Ruling
Bank not entitled to jury trial on alleged stay violation.
Issue(s)
Whether a bank was entitled to a jury trial on a debtor's 11 U.S.C.S. § 362(k)(1) action under U.S. Const. amend. VII. [1]-Applying the U.S. Supreme Court's Granfinanciera analysis, the court found that an action for violation of the automatic stay did not have an analogue in 18th century England; [2]-It was not necessary for the court to decide whether an 11 U.S.C.S. § 362(k)(1) action sought legal rather than equitable relief because the court concluded that a stay violation action asserted a public right; [3]-The court joined other courts that held that the rights created and vindicated by § 362(k)(1) were so fundamental to the bankruptcy system that they should be viewed as public rights; [4]-The fact that the bank did not file a proof of claim was irrelevant in light of the fact that a § 362(k)(1) action asserted a public right.

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Consumer opinion summary, case decided on July 01, 2013 , LexisNexis #0913-037

McCarty v. Toyota Motor Credit Corp. (In re Christopher)

Ruling
Valid pre-petition purchase money unperfected security interest in the debtors' vehicle was not avoidable.
Procedural posture

Debtors filed a voluntary petition for relief under the provisions of chapter 13. Plaintiff trustee filed an adversary proceeding seeking to determine the validity of defendant creditor's lien, to avoid the creditor's lien, and to object to the creditor's claim.

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Consumer opinion summary, case decided on June 25, 2013 , LexisNexis #0713-091

Sims v. Roggasch (In re Roggasch)

Ruling
Debtor's transfer of 90 percent of stock in a corporation within one year of petition date was made with the intent to defraud and was grounds for denial of discharge.
Procedural posture

Plaintiff creditors filed a complaint against defendant chapter 7 debtor seeking to have a debt declared nondischargeable pursuant to 11 U.S.C.S. § 523(a)(2)(A) and objecting to the debtor's discharge pursuant to 11 U.S.C.S. § 727(a)(2) and (a)(6). At the conclusion of the creditors' case in chief, the court granted the debtor's motion for judgment as a matter of law as to the § 727(a)(6) allegation.

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Consumer opinion summary, case decided on June 12, 2013 , LexisNexis #0713-026

Arkansas Dev. Fin. Auth. v. Rice (In re Yarnells Ice Cream Co.)

Ruling
Trustee with constructive notice of deed could not avoid mortgage.
Procedural posture

The Arkansas Development Finance Authority (ADFA), an agency of the State of Arkansas, filed this adversary proceeding against the chapter 7 trustee, seeking turnover of property pursuant to 11 U.S.C.S. § 542. The Trustee filed an answer to the complaint and also filed a counterclaim against ADFA. Before the court was the ADFA's motion for summary judgment. Also before the court was the Trustee's motion for summary judgment.

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Commercial opinion summary, case decided on February 05, 2013 , LexisNexis #0213-121

Price v. Ables (In re Price)

Ruling
Objection to garnishment against trustee in dismissed chapter 13 case overruled.
Procedural posture

After a debtor's chapter 13 case was dismissed, plaintiff, the trustee for the debtor's estate, filed an adversary proceeding pursuant to 11 U.S.C.S. § 1326 for the turnover of property made to chapter 13 trustee by defendants while the case was still pending.

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Consumer opinion summary, case decided on January 09, 2013 , LexisNexis #0213-063