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Educ. Credit Mgmt. Corp. v. Frushour (In re Frushour)

Appellant student loan management company appealed from the order of the district court, which held that appellee debtor satisfied the undue hardship requirement in 11 U.S.C. § 523(a)(8) and was entitled to discharge her student loans.
Ruling: 
Discharge of debtor's student loans due was overturned since the debtor had failed to show undue hardship
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In re Armstrong World Indus.

Appellant debtor corporation and two of its subsidiaries filed a chapter 11 petition for bankruptcy. An unsecured creditors committee filed objections to the bankruptcy court's proposed findings and conclusions with the district court. The district court denied confirmation of the bankruptcy reorganization plan. The debtor corporation appealed.
Ruling: 
Debtor corporation was denied confirmation of its chapter 11 reorganization plan because the plan's distribution of warrants to equity interest holders over the objection of a class of unsecured creditors violated the absolute priority rule.
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Sallie Mae Servicing Corp. v. Ransom (In re Ransom)

Appellant, a student loan lender, sought review of a decision of the bankruptcy court, which determined that appellee debtor was not obligated under the confirmed chapter 13 plan to pay accrued interest charged by the lender as part of her student loan obligation.
Ruling: 
Panel rejected that a confirmed plan could preclude a student loan lender from recovering postpetition interest on a student loan debt and thus discharge the interest obligation without conducting an undue hardship hearing.
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Abboud v. Ground Round Inc. (Ground Round Inc.)

Appellee landlord commenced an adversary proceeding to determine appellant chapter 11 debtor's interest in a liquor license previously used in its operation of a restaurant at a leased premises. The bankruptcy court granted the landlord summary judgment, holding that the landlord was entitled to enforce a retransfer provision under the lease. The debtor appealed.
Ruling: 
Landlord was entitled to enforce a lease's retransfer of a liquor license provision, and the debtor's argument that the landlord had an alternative right of payment remedy available that constituted a dischargeable claim was rejected.
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Campbell v. Verizon Wireless S-CA (In re Campbell)

Appellant chapter 13 debtors objected to four proofs of claim. The bankruptcy court sua sponte held prove-up hearings and overruled the objections made under 11 U.S.C. § 502(b)(1) that the proofs of claim lacked required documentation. The debtors appealed.
Ruling: 
Debtors'objections to four proofs of claim were rejected since debtors did not contest their liability and since lack of documentation was not sufficient grounds for disallowing the proofs of claim.
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In re Payne

Appellee debtor obtained a discharge in bankruptcy court from a federal income tax debt. The U.S. District Court affirmed the discharge. Appellant United States sought review.
Ruling: 
Court reversed debtor's discharge of federal tax liability since the debtor's six-years-late-filed return did not evidence effort to comply with the law.
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Griffey v. U.S. Bank (In re Griffey)

Plaintiffs, debtors, appealed an order of the bankruptcy court that denied their motion for reconsideration and entry of default. The debtors had brought a complaint against defendant creditor to "strip off" the creditor's second mortgage on their primary residence. Although the creditor did not respond, the bankruptcy court dismissed the complaint based on its interpretation of 11 U.S.C. § 1322(b)(2).
Ruling: 
Court reversed an order dismissing the debtor's lawsuit against a creditor because the lien holder's unsecured claim could be modified by the debtor's chapter 13 plan.
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In re Res. Tech. Corp.

Appellant lenders challenged an order of the U.S. District Court, affirming a settlement between appellee debtor, a corporation that collected methane from landfills, and its promisee, a landfill. The debtor gave the landfill a promissory note as part of a settlement after the debtor failed to build a gas-collection system for the landfill.
Ruling: 
Lenders'effort to assume debtor's rights in an executory contract by proposing the trustee abandon the contract were rejected since rights in an executory contract could be performed or breached not abandoned and then transferred.
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Hollingsworth v. Kaler (In re Hollingsworth)

Pro se appellant bankruptcy debtor asserted that appellee trustee improperly paid the claims of a creditor which were not timely filed. The debtor appealed the order of the bankruptcy court that approved the trustee's final report which provided for payment of the late claims.
Ruling: 
Creditor who filed proof of claim eight months late was entitled to payment since debtor did not timely object and sufficient funds remained to make payment.
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Martens v. Countrywide Home Loans (In re Martens)

Husband and wife debtors filed for relief under chapter 7. The bankruptcy court granted appellant creditor's motion for relief from the automatic stay with respect to the debtors'real property. Appellant wife (debtor) filed a pro se appeal of that decision; the husband did not join the appeal.
Ruling: 
Order granting relief from automatic stay was affirmed where the debtor admitted to making no mortgage payments for several months and to having no equity in the property.
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