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western district of arkansas

In re Rodriguez

Ruling
Finding that creditor's assessment of higher postpetition escrow payments did not violate stay reversed and remanded for determination of willfulness.
Procedural posture

Appellant Chapter 13 debtors filed a motion in bankruptcy court to enforce the automatic stay under 11 U.S.C.S. § 362(a) against appellee creditor. The bankruptcy court denied the motion, finding that the creditor did not violate the stay, and the United States District Court for the District of New Jersey affirmed. The debtors appealed.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on December 23, 2010 , LexisNexis #0111-074

In re Kane

Ruling
Equitable distribution claim that was abandoned by trustee could be pursued in spouse's bankruptcy.
Procedural posture

Debtor filed a motion in his chapter 13 bankruptcy proceeding to expunge appellee wife's claim with prejudice. The bankruptcy court expunged the claim without prejudice to refiling an equitable distribution claim. The United States District Court for the District of New Jersey affirmed. The debtor appealed.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on December 21, 2010 , LexisNexis #0111-055

In re Double G Trucking of the Arlatex Inc.

Ruling
Lessor allowed administrative expense claims for tractor lease payments owed through date of rejection.
Procedural posture

A lessor filed an amended application for an administrative expense claim under 11 U.S.C.S. § 503(b)(1)(A) for rental obligations that accrued in the first 59 days after a chapter 11 debtor's petition was filed. The lessor also sought automatic administrative expense treatment under 11 U.S.C.S. § 365(d)(5) for obligations that accrued from the 60th day after the petition was filed until the date the equipment was surrendered.

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Commercial opinion summary, case decided on December 20, 2010 , LexisNexis #0211-016

Lewis v. Spivey (In re Spivey)

Ruling
Debtor's use of management fees without assent of other LLC members while making false assurances resulted in nondischargeable debt.
Procedural posture

Creditors filed a complaint against chapter 7 debtors individually and as members of a limited liability company (LLC) to determine the dischargeability of debts under 11 U.S.C.S. § 523(a)(2)(A) and (a)(4). The debtors moved to dismiss the 11 U.S.C.S. § 523(a)(4) cause of action for lack of standing.

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Consumer opinion summary, case decided on November 22, 2010 , LexisNexis #1210-117

In re Andrews

Ruling
Fee awarded to attorney for debtor's former spouse in divorce was a nondischargeable domestic support obligation.
Procedural posture

Debtor filed a petition under chapter 13, and an attorney who represented the debtor's ex-wife in a divorce action filed a claim against the debtor's bankruptcy estate. The debtor filed an objection to the attorney's claim, and the attorney filed an objection to confirmation of the debtor's chapter 13 plan and moved for judgment on the pleadings.

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Consumer opinion summary, case decided on July 12, 2010 , LexisNexis #1010-002

In re Green

Ruling
Objection to claimed exemption in child support judgment overruled due to lack of evidence.
Procedural posture

In a chapter 7 case, the trustee filed an objection to the debtor's claimed exemptions under 11 U.S.C.S. § 522(d)(10)(D). The trustee also filed a motion for turnover of payments on account of past due child support.

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Consumer opinion summary, case decided on February 19, 2010 , LexisNexis #0410-116

In re Jenkins

Ruling
Debtor's plan could cure mortgage default where foreclosure sale was complete but deed had not been delivered or recorded.
Procedural posture

A bankruptcy debtor proposed a plan which provided for cure of the debtor's mortgage arrearage under 11 U.S.C.S. § 1322(c)(1) since a foreclosure sale of the debtor's residence was not finalized prior to the debtor's bankruptcy. The debtor's mortgage creditor objected to confirmation of the debtor's plan on the ground that Ark. Code Ann. § 18-50-101(8) (2003) deemed the property sold when the highest bid was accepted which was pre-bankruptcy.

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Consumer opinion summary, case decided on January 12, 2010 , LexisNexis #0210-027

Williams v. JPMorgan Chase Bank (In re Stewart)

Ruling
Mortgage lien that was defective and unperfected under state law could be avoided.
Procedural posture

Plaintiff trustee filed an adversary proceeding against defendant creditor to avoid a mortgage lien and for turnover under 11 U.S.C.S. §§ 544(a) and 550(a). The trustee also sought reasonable attorney fees pursuant to Ark. Code Ann. § 16-22-308.

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Consumer opinion summary, case decided on December 21, 2009 , LexisNexis #0210-016

In re Weathers

Ruling
Debtor's homestead exemption allowed provided debtor paid trustee for nonexempt portion of debt.
Procedural posture

Bankruptcy debtors claimed as exempt a portion of their homestead property, which was subject to a restrictive covenant against division of the property, and the debtors offered to purchase the nonexempt portion of the property. Creditors objected to the claimed exemption.

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Consumer opinion summary, case decided on December 04, 2009 , LexisNexis #0110-014

DeQueen Gen. Hosp. Inc. v. JCE Healthcare Group LLC (In re DeQueen Gen. Hosp. Streetman & Meeks)

Ruling
Distribution agent created by chapter 11 plan was entitled to award of mistakenly diverted funds and attorneys' fees due to delay in closing sale of assets.
Procedural posture

Plaintiff, distribution agent on behalf of the debtor, filed an adversary proceeding against defendants, the debtor hospital and its purchaser, alleging violations of multiple agreements and agency and fiduciary duties, and seeking a variety of relief arising out of the sale of assets from the debtor to the purchaser. The amount paid to the distribution agent was substantially less than was estimated by the plan and the disclosure statement.

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Commercial opinion summary, case decided on October 20, 2009 , LexisNexis #1109-105