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eastern district of california

McGranahan v. Dillard (In re Dillard)

Ruling
Return of one-half interest in property to former spouse after temporary transfer to debtor for refinancing pursuant to divorce decree was not avoidable.
Procedural posture

Plaintiff chapter 7 trustee sought to avoid the transfer of a one-half joint tenancy interest in real property by the debtor to defendant transferee, the debtor's former spouse, pursuant to Cal. Civ. Code § 3439.05, 11 U.S.C. § 548(a)(1)(B), 11 U.S.C. § 547.

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Consumer opinion summary, case decided on October 30, 2007 , LexisNexis #1207-049

In re Hartley

Ruling
Reopening of no asset, no bar date case to include creditors with postpetion claims not necessary as such claims would not be discharged.
Procedural posture

The debtors filed an ex parte motion to reopen their chapter 7 case without payment of the filing fee to reopen.

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Consumer opinion summary, case decided on October 01, 2007 , LexisNexis #1107-034

In re Watson

Ruling
Inclusion of trade-in negative equity in car loan did not defeat creditor's purchase money security interest or allow 506(a) valuation.
Procedural posture

Debtor, an individual who filed a chapter 13, asked the court to value the collateral of claimant, a creditor who had financed a new car that had been purchased by debtor within 910 days prior to the date on which the chapter 13 was filed.

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Consumer opinion summary, case decided on September 27, 2007 , LexisNexis #1107-044

Sanders v. Quan Ky Hang (In re Hoa Ky Hang)

Ruling
Contstructive trust imposed on house purchased by debtor's son with proceeds of sale of house preferentially transferred to him by debtor.
Procedural posture

Plaintiff, the chapter 7 trustee, sought to avoid the transfer of the debtor's former residence and the proceeds from the refinancing and sale thereof, pursuant to 11 U.S.C. § 544(b), to impose liability upon the defendant transferee, the debtor's son, under 11 U.S.C. § 550. The son's defense was that he gave reasonably equivalent consideration in exchange for the transfer.

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opinion summary, case decided on August 16, 2007 , LexisNexis #0907-136

In re Da Silva

Ruling
Treble damages imposed on petition preparer who failed to make proper disclosures and provided improper advice.
Procedural posture

A U.S. Trustee sought an order imposing a fine pursuant to 11 U.S.C. § 110(l) against the preparer of a debtor's chapter 7 bankruptcy petition.

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opinion summary, case decided on July 27, 2007 , LexisNexis #0807-106

In re Running Horse LLC

Ruling
Firm that represented creditor in acquisition of debtor was not disinterested and could not represent debtor or real estate and transactional matters.
Procedural posture

Chapter 11 debtor filed an application to employ a law firm as special counsel pursuant to 11 U.S.C. § 327(e). The United States Trustee objected.

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opinion summary, case decided on July 10, 2007 , LexisNexis #0907-039

Kistler v. Meza (Inre Meza)

Ruling
Bankruptcy court properly found that credit counseling received more than 180 days prior to filing substantially complied with requirement.
Procedural posture

Appellant, the United States Trustee sought review of the bankruptcy court's denial of its motion to dismiss appellee debtor's chapter 7 bankruptcy petition pursuant to 11 U.S.C. § 109(h) for failure to obtain prepetition credit counseling and to properly file a certificate regarding the same as required by section 109(h).

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opinion summary, case decided on June 22, 2007 , LexisNexis #0807-036

In re Winston

Ruling
Case dismissed as debtor who mistakenly took personal financial mangement course instead of credit counseling course did not make reasonable efforts to fulfill the counseling requirement.
Procedural posture

The debtor initiated a chapter 13 case. The trustee in bankruptcy moved to dismiss the petition, asserting that the debtor was not eligible for bankruptcy relief because she failed to obtain prepetition credit counseling, as required by 11 U.S.C. § 109(h). The debtor did not affirmatively request that the court determine she was exempt from credit counseling, but asserted in her opposition to the motion to dismiss that she was disabled.

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opinion summary, case decided on June 06, 2007 , LexisNexis #0707-071

In re Agundez

Ruling
Automatic stay expired as to debtors in personam upon discharge, but relief from stay was necessary as to the estate in order to allow foreclosure to proceed.
Procedural posture

In debtors'chapter 7 case, movant bank, on April 23, 2007, filed a motion, notice, and declaration requesting that the court vacate the automatic stay to permit it to foreclose upon real property.

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opinion summary, case decided on June 01, 2007 , LexisNexis #0807-007

Flores v. DDJ Inc.

Ruling
Two year limitation on trustee's powers does not end the automatic stay.
Procedural posture

Plaintiff judgment creditors obtained a jury verdict for damages against defendant judgment debtors. After a judgment was entered, the creditors moved to add as judgment debtors various individuals and entities. The debtors filed petitions to commence chapter 7 bankruptcy. The court stayed the action pursuant to 11 U.S.C. § 362(a). One of the creditors moved for an order to calendar a hearing date certain on the motion to add judgment debtors.

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opinion summary, case decided on May 22, 2007 , LexisNexis #0707-021