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In re Ludwig

Debtors, a married couple, moved to modify their chapter 13 plan pursuant to 11 U.S.C.S. § 1329 to suspend payments based on the wife's loss of employment, such suspension to remain in place until the wife became employed once again. The chapter 13 trustee objected to the motion on the ground that it was too vague and that a specific period of suspension had to be identified.
Ruling: 
Modification calling for indefinite suspension of payments due to wife's unemployment denied.
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Consumer case opionion summary, case decided on November 20,2008, LexisNexis #0109-092

In re Royal

The chapter 13 trustee filed a written objection to the below-median-income debtor's claimed exemption in her anticipated earned income tax credit pursuant to 735 ILCS 5/12- 1001(g)(1). The trustee also raised an oral objection to confirmation of the debtor's plan on the grounds that by excluding future earned income tax credits the debtor was not committing all projected disposable income to her plan, as required by 11 U.S.C.S. § 1325(b)(1)(B).
Ruling: 
Confirmation denied due to below median debtor's failure to apply future earned income tax credits to payments.
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Consumer case opionion summary, case decided on November 19,2008, LexisNexis #0209-091

Morris v. Allen (In re Morris)

Plaintiff debtor filed for relief under chapter 7 of the Bankruptcy Code, and the matter was converted to a chapter 13 proceeding. The debtor filed an adversary proceeding alleging violations of the automatic stay and violations of a relief from stay order made by an attorney while she represented the debtor's husband in a state court divorce proceeding.
Ruling: 
Actions by debtor's former spouse and lawyer beyond scope of relief granted from stay entitled debtor to damages.
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Consumer case opionion summary, case decided on November 19,2008, LexisNexis #0109-005

In re Dowell

A secured creditor of a chapter 13 debtor sought pre and post-confirmation adequate protection under 11 U.S.C.S. § 363(e), based on the principal balance of its loan rather than the value of its collateral.
Ruling: 
Adequate protection payments on "910 vehicle" loan were properly based on value of vehicle, not outstanding balance.
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Consumer case opionion summary, case decided on November 19,2008, LexisNexis #0109-076

In re Patton

Chapter 13 debtors filed plans containing language objectionable to secured creditors, all of whom were home lenders. The plans' proposed language provided that the payments would be applied to the debtors' mortgage accounts as if the accounts were current and no prepetition defaults existed on the petition dates, and the creditors argued that those provisions impermissibly modified their secured liens in violation of 11 U.S.C.S. § 1322(b)(2).
Ruling: 
Plan could require mortgage creditors to apply payments as if prepetition default had not occurred.
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Consumer case opionion summary, case decided on November 19,2008, LexisNexis #0209-056

In re Graham

Debtor, an individual whose prior chapter 13 bankruptcy case (Case 1) had been pending within a year prior to the date on which the instant case (Case 2) was filed, moved to extend the 30-day automatic stay per 11 U.S.C.S. § 362(c) and also sought a turnover of property while two creditors filed motions for relief from stay.
Ruling: 
Stay extended in debtor's second chapter 13 case in one year due to demonstrated change in circumstances.
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Consumer case opionion summary, case decided on November 18,2008, LexisNexis #0109-006

In re Brenneman

The United States Trustee (UST) filed a motion to dismiss the debtors' chapter 7 bankruptcy case, pursuant to 11 U.S.C.S. § 707(b)(1) and (3), for abuse.
Ruling: 
Case ordered converted or dismissed for abuse where adjustments to debtors' budget would allow payments to unsecured creditors.
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Consumer case opionion summary, case decided on November 18,2008, LexisNexis #0109-052

Miller v. Homecomings Fin. Network Inc. (In re McMahon)

Plaintiff chapter 13 trustee filed a motion for a default judgment pursuant to Fed. R. Civ. P. 55(b), made applicable by Fed. R. Bank. P. 7055, against defendant creditor after the creditor failed to respond to the trustee's complaint, which sought to avoid the creditor's mortgage lien.
Ruling: 
Trustee's motion for default in avoidance proceeding denied due to improper service.
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Consumer case opionion summary, case decided on November 18,2008, LexisNexis #0309-059

In re Peppers

The debtor filed an objection to a proof of claim filed by the creditor which held a first mortgage on the debtor's home. The objection contested the creditor's arrearage claim. The debtor believed that a portion of the claim should be paid as an unsecured claim pursuant to 11 U.S.C.S. § 506(a).
Ruling: 
First mortgage on debtor's home was not subject to modification.
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Consumer case opionion summary, case decided on November 18,2008, LexisNexis #1208-113

In re Mitchell

A debtor filed for relief under chapter 13 of the Bankruptcy Code. A county agency filed an amended proof of claim asserting that its claim was a priority tax claim under 11 U.S.C.S. § 507(a)(8), and the debtor filed an objection to the amended proof of claim.
Ruling: 
County fee that was not designated as a tax was not entitled to priority treatment.
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Consumer case opionion summary, case decided on November 17,2008, LexisNexis #0109-010

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