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western district of arkansas

Morgan v. Goldman (In re Morgan)

Ruling
Debtors and trustee ordered to repay sum improperly released by trustee for roof repairs and used by debtors'for gambling junkets.
Procedural posture

After a chapter 13 trustee disbursed $10,000 to debtors allegedly to fund a roof repair on their home, the court issued an order to both the trustee and debtors to show cause why they should not be required to reimburse the estate for the entire sum. Debtors were also ordered to file an accounting showing how the funds were actually used.

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opinion summary, case decided on October 03, 2006 , LexisNexis #1106-103

Clark v. Flippin

Ruling
Bankruptcy court properly held that nontransferrable dower interest was not subject to turnover.
Procedural posture

Appellant bankruptcy trustee challenged the decision of the bankruptcy court, which denied his motion for turnover of the non-exempt equity in the debtor's dower interest in certain real property.

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opinion summary, case decided on September 29, 2006 , LexisNexis #1006-135

In re Beene

Ruling
Objection to amended chapter 13 plan in converted case sustained due to potential windfall to unsecured creditors if mortgagee's claim were avoided.
Procedural posture

The chapter 13 trustee raised objections to confirmation of the debtors'amended plan, asserting that the plan violated the 11 U.S.C. § 1325(a)(4) best interest of creditors test because unsecured creditors would receive a greater distribution in a chapter 7 liquidation, where debtors'defective mortgage could be avoided.

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opinion summary, case decided on August 27, 2006 , LexisNexis #0906-075

In re Beene

Ruling
Confirmation denied where unsecured creditors would receive greater distribution in chapter 7.
Procedural posture

Chapter 13 trustee objected to the confirmation of debtors' plan on the grounds that the plan did not comply with 11 U.S.C. § 1325(a).

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opinion summary, case decided on August 18, 2006 , LexisNexis #0906-134

Daniel v. Boyd (Boyd)

Ruling
Debtor was denied discharge due to debtor's concealment of property interests and inaccurate income data.
Procedural posture

Plaintiffs, creditors, filed a complaint to determine dischargeability and an objection to discharge. The issues were whether: (1) the debtor's discharge should be denied under 11 U.S.C. § 727(a)(2)(A); (2) the debtor's discharge should be denied under 11 U.S.C. § 727(a)(4)(A); and (3) the debt to the creditors was nondischargeable pursuant to 11 U.S.C. § 532 (a)(2)(A).

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opinion summary, case decided on August 08, 2006 , LexisNexis #0806-136

Lee v. Regions Bank & Student Loan Guar. Found. (In re Lee)

Ruling
Debtor's student loans were deemed dischargeable due to undue hardship since debtor's reasonable expenses greatly exceeded her income.
Procedural posture

Before the court was a complaint to determine the dischargeability of a student loan debt that plaintiff debtor owed to defendant creditor.

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opinion summary, case decided on July 06, 2006 , LexisNexis #0806-129

In re Scruggs

Ruling
Objection to confirmation was sustained since plan failed to propose to pay interest on creditor's secured claim at rate prescribed by Till case.
Procedural posture

Debtors filed a voluntary petition for relief under the provisions of chapter 13. Debtors'plan proposed to pay the sum of $854 per month to the trustee for a period of 60 months. A creditor filed a timely objection to confirmation of the plan, asserting that the plan failed to propose to pay it the present value of its claim over the life of the plan as required by 11 U.S.C. § 1325(a)(5)(B)(ii).

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opinion summary, case decided on May 31, 2006 , LexisNexis #0606-112

In re Cobb

Ruling
Case was dismissed since debtors' typed statement of exigent circumstances was not a certification sworn to under oath.
Procedural posture

Respondent U.S. trustee objected to petitioner debtors'request for a waiver of the requirement in 11 U.S.C. § 109(h)(1) that they obtain credit counseling before filing their chapter 13 bankruptcy petition.

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opinion summary, case decided on May 22, 2006 , LexisNexis #0606-038

In re May

Ruling
Lien on debtors'homestead was deemed avoidable since the extent of impairment of debtors'homestead exemption was greater than lien amount.
Procedural posture

Before the court was debtors'motion to avoid judicial lien, pursuant to 11 U.S.C. § 522(f), opposed by the creditor.

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opinion summary, case decided on April 03, 2006 , LexisNexis #0606-018

In re Warren

Ruling
Dismissal was not warranted since the debtor completed the required credit counseling on the filing day before filing but needed an extension of time to file the certificate of counseling.
Procedural posture

A bankruptcy debtor obtained credit counseling as required by 11 U.S.C. § 109(h)(1) on the same day, but prior to the time, that the debtor filed his bankruptcy petition, but the debtor was unable to obtain a certificate of credit counseling until several weeks later. The debtor moved to enlarge the time for filing the certificate, and the trustee moved to dismiss the petition.

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opinion summary, case decided on March 21, 2006 , LexisNexis #0406-001