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Southhall v. Check Depot Inc. (In re Southhall)

Plaintiff debtor filed for chapter 13 relief. Defendant creditor filed an unsecured proof of claim, which included the debtor's full social security number. The debtor filed an adversary proceeding against the creditor, alleging violation of the Bankruptcy Code and contempt, invasion of privacy, and violation of the Gramm-Leach-Bliley Act (GLBA). The creditor moved to dismiss.
Ruling: 
Adversary proceeding based on creditor's inclusion of debtor's full social security number in its proof of claim dismissed as it did not violate bankruptcy code or rules in effect at the time of filing.
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Consumer case opionion summary, case decided on December 19,2008, LexisNexis #0209-037

Barsness v. Wishire Credit Corp. (In re Barsness)

Defendant lender foreclosed upon its mortgage several months before plaintiff debtor, acting pro se, filed a chapter 7 petition. Debtor filed a document seeking injunctive relief to stop the foreclosure action. The document was treated as a complaint to commence an adversary proceeding. The bankruptcy trustee filed a no-asset case notice. Debtor received a discharge. The case was closed. Debtor sought to dismiss the adversary proceeding.
Ruling: 
Adversary proceeding to stop foreclosure dismissed upon closing of debtor's no-asset case.
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Consumer case opionion summary, case decided on December 19,2008, LexisNexis #0209-061

Manchester Inc. v. Lyle (In re Manchester Inc.)

Plaintiff debtor filed for relief under chapter 11 of the Bankruptcy Code. Before the bankruptcy proceeding was filed the debtor had been involved in litigation with defendant sellers. The sellers filed a claim in the bankruptcy proceeding for $ 9 million, which was later amended to seek a total recover of $33.4 million. The sellers filed a motion to withdraw their proofs of claim under Fed. R. Bankr. P. 3006.
Ruling: 
Motion to withdraw proofs of claim granted.
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Commercial case opionion summary, case decided on December 19,2008, LexisNexis #0109-096

In re McCully

The trustee opposed the motion of the debtors to modify their previously confirmed chapter 13 plan, pursuant to 11 U.S.C.S. §§ 1325(b)(4) and 1329(a)(2), so that they could decrease the number of their monthly plan payments.
Ruling: 
Co-debtors who fell below median income when one became unemployed were not bound by original above-median commitment period when seeking modification.
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Consumer case opionion summary, case decided on December 19,2008, LexisNexis #0209-058

Hersh v. United States

The district court for the Northern District of Texas held that 11 U.S.C.S. § 526(a)(4) was facially unconstitutional. Defendant, the United States, appealed this ruling. The district court also held that attorneys qualified a debt relief agencies under 11 U.S.C.S. § 101(12A), and that 11 U.S.C.S. § 527(b) did not violate the First Amendment. Plaintiff, a bankruptcy attorney, cross-appealed these rulings.
Ruling: 
Section 526(a)(4) prohibits only counseling that would lead to abuse of bankruptcy system and is not facially unconstitutional.
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Consumer case opionion summary, case decided on December 18,2008, LexisNexis #0209-011

In re Majors

A mortgage creditor filed a motion for relief from the automatic stay in order to proceed with the eviction/ejectment of the chapter 13 debtor from a residential property in a state court proceeding, under 11 U.S.C.S. § 362(d). The debtor argued that cause did not exist to modify the stay, and that he had sufficient equity in the property to warrant continued protection under the stay.
Ruling: 
Relief from stay to proceed with eviction denied where creditor was protected by equity cushion in property.
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Consumer case opionion summary, case decided on December 18,2008, LexisNexis #0209-040

In re Elizabethtown Family Care Clinic LLC

Movant creditor, a landlord, sought payment of an administrative expense claim per 11 U.S.C.S. § 503(b)(1)(A) in connection with the estate's post-petition occupation of a medical office leased by debtor tenant from the creditor. The trustee filed an objection to the proof of claim contesting the proper amount thereof. At issue was the date upon which the trustee's obligation under 11 U.S.C.S. § 365(d)(3) began to run.
Ruling: 
Landlord allowed administrative expsense claim for rent incurred after petition date.
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Commercial case opionion summary, case decided on December 18,2008, LexisNexis #0109-077

ColeMichael Invs. LLC v. Burke (In re Burke)

Plaintiff creditor filed an adversary action with respect to a chapter 7 bankruptcy involving defendant debtor, seeking a finding that a debt reflected by a default judgment entered by the District Court of Dallas County, Texas, was not dischargeable under 11 U.S.C.S. § 523(a)(2)(A), (a)(4), and (a)(6). The creditor filed a motion for judgment on the pleadings.
Ruling: 
Dischargeability of state court judgment could be countered by debtor where necessary factual issues were not definitively adjudicated.
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Consumer case opionion summary, case decided on December 18,2008, LexisNexis #0209-047

In re Central Ill. Energy LLC

Three joint movants, the chapter 7 trustee, the primary general contractor for the debtor's ethanol plan construction project, and the purchaser of substantially all of the debtor's assets, moved to approve a compromise pursuant to Bankruptcy Rule 9019. The proposed compromise was embodied in a contract entitled "Stipulation and Mutual Release of Claims". An objection to the motion for approval was filed by a company.
Ruling: 
Repudiation by trustee necessitated denial of motion to approve settlement.
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Commercial case opionion summary, case decided on December 18,2008, LexisNexis #0209-063

In re Pick

The debtors filed for relief under chapter 13 of the Bankruptcy Code. The debtors filed a motion to approve the sale of real and personal property, pursuant to 11 U.S.C.S. § 363(f), and a creditor objected to the sale motions. A bank approved the proposed sale. The bank and the creditor both filed separate motions for relief from the stay and the debtors objected to the motions for relief from the stay.
Ruling: 
Approval of sale of property to debtor's son denied due to insufficient recovery for creditors.
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Consumer case opionion summary, case decided on December 18,2008, LexisNexis #0209-110

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