Aug
06
2010
In re Tiger Aircraft LLC
A Chapter 7 trustee filed an objection to a creditor's classification of its proof of claim as unsecured on the grounds that the creditor's claim was on account of its equity interest in the debtor and thus, pursuant to 11 U.S.C.S. § 726, it could only be paid if all unsecured claims received full payment. The court treated the parties' briefs as cross-motions for summary judgment.
Ruling:
Creditor's claim based on equity interest in debtor could not be classified as unsecured.
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Commercial case opionion summary, case decided on August 06,2010, LexisNexis #1010-123
Aug
06
2010
In re Bethany Homes Inc.
Judgment creditors of a bankruptcy debtor sought to hold the debtor in contempt in state court for failing to cooperate in discovery in the creditors' efforts to collect the judgment, but the motion was stayed after the debtor filed its bankruptcy petition. The creditors moved for sanctions pursuant to Fed. R. Bankr. P. 9011 against the debtor, its principal, and its attorney, asserting that the bankruptcy petition was filed in bad faith.
Ruling:
Frivolous filing to prevent foreclosure was grounds for sanctions against debtor's principal and attorney.
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Commercial case opionion summary, case decided on August 06,2010, LexisNexis #0910-138
Aug
03
2010
Petrovic v. Vetal (In re Vetal)
Former employee filed an adversary proceeding against chapter 7 debtor, a person who had owned a company that was engaged in the business of servicing swimming pools, seeking a determination that the debtor owed a debt that was nondischargeable under 11 U.S.C.S. § 523(a)(2)(A). The debtor filed a motion for summary judgment.
Ruling:
Checks dishonored due to freeze on debtor's line of credit did not give rise to nondischargeable debt.
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Consumer case opionion summary, case decided on August 03,2010, LexisNexis #0910-080
Aug
03
2010
In re Clifton
Debtor filed a motion to show cause why the automatic stay provision of 11 U.S.C.S. § 362(a) had not been violated by the Secretary of Labor due to a complaint filed by the Secretary against the debtor in federal court. Debtor also filed a motion seeking an injunction and sanctions against the Secretary.
Ruling:
Secretary of Labor's complaint regarding debtor's ERISA violations was within police and regulatory powers exception to stay.
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Consumer case opionion summary, case decided on August 03,2010, LexisNexis #0910-107
Jul
28
2010
In re Evans
A hearing was held regarding confirmation of a debtor's proposed chapter 13 plan of reorganization. The debtor proposed to pay his unsecured creditors 100 percent of their allowed claims in monthly payments spread over a period of 36 consecutive months. The unresolved issue was the interest rate that had to be provided for the unsecured creditors in order for the plan to comply with the best-interest-of-creditors test in 11 U.S.C.S. § 1325(a)(4).
Ruling:
Till rate if interest was appropriate for debtors to unsecured creditors in chapter 13 plan.
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Consumer case opionion summary, case decided on July 28,2010, LexisNexis #0910-101
Jul
27
2010
In re Beeson
Creditor husband brought a motion for abstention under 11 U.S.C.S. § 305(a)(1), seeking the dismissal of the instant voluntarily filed chapter 11 case filed by debtor wife, asserting that their pending divorce and property action in family court was the proper forum for disposition of property in which the debtor wife had an interest.
Ruling:
Bankruptcy court abstained from and dismissed individual debtor's chapter 11 case where parties and debtors would be settled more properly in divorce proceedings.
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Consumer case opionion summary, case decided on July 27,2010, LexisNexis #1010-071
Jul
23
2010
Mercer v. Bank of Currituck (In re Mercer)
This adversary proceeding was filed by plaintiff debtor to determine the validity of the lien asserted by defendant bank on real property owned by debtor. The matter before the court was debtor's motion for partial summary judgment, seeking to avoid the bank's lien under 11 U.S.C.S. §§ 544(a)(1), 1107(a) as unenforceable against the debtor-in-possession because the lien was not properly perfected at the time of debtor's bankruptcy filing.
Ruling:
Lien that was improperly perfected on petition date could be avoided by debtor in possession.
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Consumer case opionion summary, case decided on July 23,2010, LexisNexis #0910-021
Jul
13
2010
In re Cloverleaf Enters.
Both general and special counsel to the debtor presented first interim applications for compensation in the form of attorneys' fees, pursuant to 11 U.S.C.S. §§ 330 and 331. The United States trustee filed objections to the application.
Ruling:
Interim compensation awarded to debtor's attorneys for services reasonably likely to benefit estate.
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Commercial case opionion summary, case decided on July 13,2010, LexisNexis #1010-039
Jul
07
2010
In re Adams
The Chapter 13 debtors filed a motion for a creditor to show cause why it should not be held in contempt for violating the terms of an order declaring that all mortgage payments due from the debtors to the creditor were current as of that date and enjoining any action to collect sums discharged.
Ruling:
Creditor mortgagee held in contempt for continuing to assess principal, fees and costs over a prolonged period in knowing violation of stay.
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Consumer case opionion summary, case decided on July 07,2010, LexisNexis #1010-069
Jul
06
2010
In re Nuts & Boltzs LLC
A bankruptcy debtor in possession continued to operate its hardware business by buying inventory at wholesale prices and selling at retail prices. The debtor moved pursuant to 11 U.S.C.S. § 506 to establish the value of the debtor's inventory for purposes of determining the secured status of a creditor in a third lien position which provided inventory to the debtor.
Ruling:
Debtor hardware store's inventory valued at wholesale replacement cost.
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Commercial case opionion summary, case decided on July 06,2010, LexisNexis #0910-045