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eastern district of arkansas

In re Whitehead

Ruling
Discharge denied due to unexplained loss of investment property.
Procedural posture

Creditor brought an adversary complaint against chapter 7 debtor objecting to discharge and/or the dischargeability of a debt, based on debtor's failure to satisfactorily explain the loss of an asset, pursuant to 11 U.S.C.S. § 727(a)(5). Creditor and debtor had a business venture that involved purchasing and fixing up houses, and debtor had transferred one such house to his parents.

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Consumer opinion summary, case decided on October 16, 2012 , LexisNexis #1112-026

In re Heath

Ruling
Confirmation denied due to modification of cross-collateralized debt.
Procedural posture

Debtors filed a petition under chapter 12 of the Bankruptcy Code and proposed a plan for paying their creditors that allowed them to sever agreements they entered with a creditor that cross-collateralized debts they owed the creditor. The creditor filed an objection to confirmation of the debtors' plan.

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Consumer opinion summary, case decided on July 03, 2012 , LexisNexis #1212-130

In re Hopper

Ruling
Confirmation denied and case converted to chapter 7 due to debtor's bad faith.
Procedural posture

Debtor declared chapter 13 bankruptcy and proposed a plan for repaying his creditors. The debtor's ex-wife filed an objection to confirmation of the debtor's plan and asked the court to convert the debtor's case to one under chapter 7, and a trustee who was appointed to administer the plan also filed an objection to confirmation. The court held a hearing on the objections and on an adversary proceeding the debtor filed against his ex-wife.

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Consumer opinion summary, case decided on June 27, 2012 , LexisNexis #0712-094

Dugan v. U.S. Bank (In re Dugan)

Ruling
Bank did not violate stay by seizing funds from business account of separate corporate entity owned 100 percent by debtor.
Procedural posture

Chapter 13 debtors filed a complaint defendant bank alleging violation of the automatic stay and seeking turn over of property of the estate. The bank filed a motion to dismiss pursuant to Fed. R. Civ. P. 12(b)(6) and Fed. R. Bankr. P. 7012.

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Consumer opinion summary, case decided on June 20, 2012 , LexisNexis #0812-137

In re Nicholas

Ruling
Confirmation denied due to plan that effectively required unsecured creditors to subsidize debtor's retention of home and excluded SSI income from projected disposable income.
Procedural posture

The chapter 13 trustee objected to confirmation of a plan proposed by debtor, an ex-wife, based in part on debtor's intention to continue to reside in and to pay mortgages secured by a 7000 square foot residence in which she lived alone. One issue was whether the court might properly take debtor's Social Security income (SSI) into account in determining her projected disposable income (PDI) that was required to be committed to the plan.

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Consumer opinion summary, case decided on October 26, 2011 , LexisNexis #1211-060

Luker v. Heartland Cmty. Bank (In re Frankum)

Ruling
Payments to bank less than 90 days prior to petition date were preferential and avoidable.
Procedural posture

Chapter 7 trustee filed an adversary proceeding against defendants, two banks and a funeral home, claiming, inter alia, that a $500,000 payment that was made to one of the banks was a preferential transfer that could be avoided under 11 U.S.C.S. § 547. The trustee filed a motion for summary judgment.

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Consumer opinion summary, case decided on July 18, 2011 , LexisNexis #0911-139

In re Burnett

Ruling
Debtor's counsel held in contempt and sanctioned for violating prior suspension order.
Procedural posture

The court ordered defendant, counsel for various debtors, to show cause why he should not be held in contempt of the court's prior suspension order, issued in connection with the court's finding in a different case that defendant would not be permitted to practice before the court until a state supreme court committee on professional conduct had reviewed the court's findings as to defendant's alleged misconduct.

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Consumer opinion summary, case decided on June 13, 2011 , LexisNexis #1011-034

In re Bacon

Ruling
Debtor could not modify plan to accommodate new monthly car payments and increased insurance on Cadillac.
Procedural posture

Approximately five months after confirmation of her plan of reorganization, a debtor sought to modify the plan pursuant to 11 U.S.C.S. § 1329. The bankruptcy trustee filed an objection.

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Consumer opinion summary, case decided on May 26, 2011 , LexisNexis #0611-102

In re Cameron

Ruling
Claim under oral agreement disallowed as paid in full.
Procedural posture

The Chapter 13 debtors objected to a creditor's claim pursuant to 11 U.S.C.S. § 502(b)(1) on the grounds that it was based on an unenforceable agreement. The court examined Arkansas law to determine if there was an enforceable contract between the debtors and the creditor. Both parties sought attorneys' fees.

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Consumer opinion summary, case decided on May 17, 2011 , LexisNexis #0611-047

In re White

Ruling
Lien which affixed to entireties property before divorce and conversion to tenancy-in-common could not be avoided.
Procedural posture

Debtors filed separate chapter 7 bankruptcy cases. In each case, the creditor filed its Objection to Debtor's Claimed Exemption/Motion for Relief from Stay (individually, "Objection" and "Motion for Relief"). Thereafter, each debtor filed a Motion to Avoid Lien with respect to the judgment lien asserted by the creditor. The creditor filed a Motion for Summary Judgment and debtors filed a Counter Motion for Summary Judgment.

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Consumer opinion summary, case decided on April 29, 2011 , LexisNexis #0511-114