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Wayne Indus. Holdings v. Goro (In re Wayne Engg Corp.)

Ruling
Bankruptcy court had jurisdiction over action by buyer of debtor's asets against debtor's owners and their LLC for conversion of estate assets.
Procedural posture

Plaintiff buyer filed an action against defendants, several businesses and various members of the same family, alleging conversion and intentional interference with its interest in assets it purchased from a chapter 7 corporate debtor. Defendants filed a motion to dismiss the action, claiming that the court lacked jurisdiction to hear the buyer's claims.

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Commercial opinion summary, case decided on April 17, 2008 , LexisNexis #0508-140

Wayne Indus. Holdings v. Goro (In re Wayne Engg Corp.)

Ruling
Action by buyer of debtor's assets for conversion and interference was a core proceeding related to debtor's bankruptcy.
Procedural posture

Plaintiff buyer filed an action against defendants, several businesses and various members of the same family, alleging conversion and intentional interference with its interest in assets it purchased from a chapter 7 corporate debtor. Defendants filed a motion to dismiss the action, claiming that the court lacked jurisdiction to hear the buyer's claims.

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Commercial opinion summary, case decided on April 17, 2008 , LexisNexis #0508-035

Lee v. Spellings (In re Lee)

Ruling
Debtor with income who had failed to make payments under prior agreement with Department of Education denied undue hardship discharge of student loan debt.
Procedural posture

Plaintiff debtor filed for relief under chapter 7 of the Bankruptcy Code. The debtor filed an action against defendant, the United States Department of Education (DOE), to obtain an undue hardship discharge under 11 U.S.C.S. § 523(a)(8). After a trial, the court issued findings of fact and conclusions of law.

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Consumer opinion summary, case decided on April 16, 2008 , LexisNexis #0908-137

Chao v. Gott (In re Gott)

Ruling
Debt owed by debtor as fiduciary of employee benefit plan was nondischargeable.
Procedural posture

Plaintiff Secretary of Labor filed an adversary complaint for a determination that defendant debtor's obligation to repay unpaid employee participant withholdings to the participants of his company's individual retirement account (IRA) plan was nondischargeable under 11 U.S.C.S. § 523(a)(4).

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Consumer opinion summary, case decided on April 14, 2008 , LexisNexis #0508-117

In re Blanchard

Ruling
Debtors' attorney held in contempt and barred from practice before the bankruptcy court due to failure to comply with court orders.
Procedural posture

After an attorney who had been representing a chapter 7 debtor failed to comply with a court order directing her to file an itemized statement of fees and expenses as well as time records relating to debtor's case and after she failed to appear at a subsequent hearing on the same issue, the court notified all parties that it would consider the imposition of sanctions at a new hearing, for which notice was given.

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Consumer opinion summary, case decided on April 14, 2008 , LexisNexis #0508-071

Fokkena v. Blackburn (In re Blackburn)

Ruling
Failure to disclose existence of two trusts and associated assets resulted in denial of discharge.
Procedural posture

The debtors filed for relief under chapter 7. A United States trustee filed a complaint for a denial of a discharge pursuant to 11 U.S.C.S. § 727(a)(2), (3) and (4)(A). The court held a hearing and issued findings of fact and conclusions of law.

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Consumer opinion summary, case decided on April 03, 2008 , LexisNexis #0508-137

Schnittjer v. Houston (In re Houston)

Ruling
Debtor's transfer of property to mother for less than full value within one year of filing was fraudulent.
Procedural posture

Defendant debtor filed for relief under chapter 7 of the Bankruptcy Code. Plaintiff trustee filed an adversary proceeding alleging that a transfer of real estate and certain CRP payments to defendant, debtor's mother, constituted fraudulent transfers. The trustee filed a motion for summary judgment.

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Consumer opinion summary, case decided on April 02, 2008 , LexisNexis #0408-116

Flynn v. Zeitler (In re Zeitler)

Ruling
Counsel's inadvertent calendering of appeal deadline for wrong date was not excusable neglect that would justify an extension.
Procedural posture

Defendant debtor filed a motion for an extension of time to file an appeal of an order, which granted plaintiff trustee summary judgment on a claim that the debtor's interest in a family trust was included in the bankruptcy estate and that the trustee had authority to liquidate that interest.

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Consumer opinion summary, case decided on April 01, 2008 , LexisNexis #0508-128

Johnston v. Fifth Third Bancorp (In re Johnston)

Ruling
Debtor with schizoaffective disorder who failed to complete graduate degree granted undue hardship discharge of student loan debt.
Procedural posture

Plaintiff debtor filed for relief under chapter 7 of the United States Bankruptcy Code. The debtor filed an action against defendant creditor, and intervenor creditor joined the proceedings, to determine the dischargeability of the debtor's student loan obligations pursuant to 11 U.S.C.S. § 523(a)(8). The court held a trial and issued findings of fact and conclusions of law.

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Consumer opinion summary, case decided on March 11, 2008 , LexisNexis #0408-030

Flynn v. Zeitler (In re Zeitler)

Ruling
Trust that did not qualify as spendthrift trust under state law was not excluded from the estate.
Procedural posture

Plaintiff trustee filed an action against defendants, a capter 7 debtor, debtor's family members, interested parties in a trust, a limited liability partnership, and a limited liability company, seeking a ruling that the trust was invalid as a spendthrift trust. The trustee filed a motion for summary judgment.

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Consumer opinion summary, case decided on February 29, 2008 , LexisNexis #0408-047