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northern district of iowa

In re Worrel

Ruling
Expensive vehicle leases of cars used to transport show dogs for debtor husband's low paying job would prevent payment to unsecured creditors and resulted in bad faith dismissal.
Procedural posture

The United States Trustee ("UST") moved to dismiss the debtors' chapter 7 case pursuant to 11 U.S.C. § 707(b)(1) and (3) on the grounds that the filing constituted a substantial abuse of the provisions of chapter 7.

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Consumer opinion summary, case decided on November 09, 2007 , LexisNexis #1207-014

In re Vantiger-Witte

Ruling
Chapter 12 debtor could convert case to chapter 13.
Procedural posture

Though debtor filed a chapter 12 proceeding, no chapter 12 plan was confirmed. After selling the real estate to pay off secured creditors, debtor moved to convert to chapter 13. The trustee appeared and argued that there was no statutory authority for such a conversion. At issue was whether a chapter 12 debtor may convert to a chapter other than chapter 7.

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Consumer opinion summary, case decided on November 06, 2007 , LexisNexis #1207-070

In re Binninger

Ruling
Presumption of abuse applied where extra income due to debtor's overtime occurred regularly and possible upcoming retirement was not mandatory.
Procedural posture

The United States Trustee ("UST") moved to dismiss the debtors'chapter 7 case for abuse under 11 U.S.C. § 707(b)(1). Alternatively, the UST argued that the petition be dismissed under 11 U.S.C. § 707(b)(3)(B), the totality of the circumstances test.

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Consumer opinion summary, case decided on October 19, 2007 , LexisNexis #1107-118

In re Vaupel

Ruling
Bankruptcy court declined to approve stipulation based on reaffirmation agreement that would not have been approved.
Procedural posture

The debtors filed for relief under chapter 13, and the matter was converted to a case under chapter 7. The creditor held a security interest in an automobile. The debtor and the creditor filed a reaffirmation agreement reaffirming the debt to the credit union in the amount of $3,397. The parties filed an agreed joint stipulation and order between the debtor and the creditor.

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opinion summary, case decided on August 28, 2007 , LexisNexis #1007-006

In re Miller

Ruling
Reaffirmation of loan secured by motorcycle denied as not in debtor's best interest.
Procedural posture

A debtor filed a reaffirmation agreement with a creditor in order to retain a motorcycle, and the court held a hearing in order to evaluate the reasonableness of the reaffirmation.

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opinion summary, case decided on August 20, 2007 , LexisNexis #0907-085

United States Trustee v. Klages (In re Klages)

Ruling
Discharge revoked due to debtor's spending of tax refunds contrary to court orders.
Procedural posture

Plaintiff U.S. trustee filed a proceeding to revoke the discharge of defendant debtor after the debtor failed to deliver the non-exempt portion of certain tax refunds under 11 U.S.C. § 727(d)(2). Pursuant to 11 U.S.C. § 727(d)(3) and (a)(6)(A), the U.S. Trustee also asserted that the debtor willfully disobeyed court orders to attend debtor's examinations.

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opinion summary, case decided on August 02, 2007 , LexisNexis #0907-103

Loftus v. Sallie Mae Servicing (In re Loftus)

Ruling
Debtor wife's student loan debt was dischargeable but debtor husband's was not.
Procedural posture

Plaintiff bankruptcy debtors, former husband and wife, brought an adversary proceeding against defendant creditors, seeking a determination that their student loan debt to the creditors was dischargeable based on undue hardship under 11 U.S.C. § 523(a)(8). The bankruptcy court conducted a trial.

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opinion summary, case decided on June 29, 2007 , LexisNexis #0807-101

Fokkena v. Smith (In re Smith)

Ruling
Discharge denied due to debtor's concealment of interests in real estate contract and joint bank account.
Procedural posture

Plaintiff, the U.S. Trustee, sought an order denying a discharge to debtor pursuant to 11 U.S.C. § 727(a)(2) and (a)(4)(A) on claims that debtor concealed property from the estate by omitting assets from his petition and knowingly made a false oath or account when he testified to the accuracy of his petition.

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opinion summary, case decided on June 12, 2007 , LexisNexis #0907-137

In re Timmerman

Ruling
Chapter 7 trustee could not serve as attorney for debtor.
Procedural posture

The chapter 7 trustee filed an application to employ himself as attorney for the trustee.

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opinion summary, case decided on April 25, 2007 , LexisNexis #0607-071

In re Solma

Ruling
Debtor's benefits under late mother's 401(k) plan and life insurance policies were property of the estate.
Procedural posture

The trustee filed a motion for turnover of money that the debtor received from his late mother's 401(k) plan. The debtor objected that the money was not property of the bankruptcy estate, pursuant to 11 U.S.C. § 541(a)(5).

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opinion summary, case decided on April 24, 2007 , LexisNexis #0607-093