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Showalter v. Stephens (In re Stephens)

Plaintiff creditor objected to defendant debtor's discharge under 11 U.S.C.S. § 727(a)(2) and (4).
Ruling: 
Discharge denied due to debtor's attempts to evade collection and omissions from schedules.
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Consumer case opionion summary, case decided on November 30,2010, LexisNexis #0111-026

McDermott v. DB McCully Bail Bonds Inc. (In re McDermott)

A Chapter 7 debtor sought to avoid both pre- and post-petition garnishments of his wages pursuant to 11 U.S.C.S. § 547(b) and 11 U.S.C.S. § 549 by defendant judgment creditor.
Ruling: 
Preference period and postpetition garnishments were avoidable.
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Consumer case opionion summary, case decided on November 22,2010, LexisNexis #1210-125

Logan v. Citi Mortg. Inc. (In re Schubert)

After plaintiff, the chapter 7 trustee, filed an adversary complaint against defendants, Lenders 1 and 2, to avoid Lender 1's interest as a preference under 11 U.S.C.S. § 547 and to determine the value of Lender 2's secured interest, which arose from its grant of an equity line of credit (LOC) to debtors, the court determined that Lender 1's interest was an avoidable preference but left open the issue of whether equitable subrogation applied.
Ruling: 
Equitable subrogation applied to prevent avoidance of refinanced first mortgage in favor of successor to original lender.
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Consumer case opionion summary, case decided on October 12,2010, LexisNexis #1110-094

Newcomer v. Litton Loan Servicing LP (In re Newcomer)

Plaintiff bankruptcy debtor brought an adversary proceeding against defendant servicer of a mortgage loan of the non-debtor spouse of the debtor alleging that the servicer violated the automatic bankruptcy stay under 11 U.S.C.S. § 362, the debtor's confirmed plan under 11 U.S.C.S. § 1327, and the discharge injunction under 11 U.S.C.S. § 1328.
Ruling: 
Loan servicer did not violate stay by sending letter regarding loan on which non-debtor spouse was obligor, secured by property in which debtor had acquired an interest.
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Consumer case opionion summary, case decided on September 30,2010, LexisNexis #1110-067

In re White

A Chapter 7 trustee filed an objection to a debtor's claim of exemption in a spendthrift trust, asserting that he could attach her interest, not generally, but to satisfy her student loan creditors and certain other creditors. The trustee argued that under 11 U.S.C.S. § 544(a)(1), he was entitled to step into the shoes of a creditor for the purposes of invading the trust. The debtor and a trustee under the spendthrift trust opposed the objection.
Ruling: 
Trustee could not use strong-arm powers to step into the shoes of a preferred class of creditors in order to seize the assets of a spendthrift trust.
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Consumer case opionion summary, case decided on September 30,2010, LexisNexis #1110-054

Bedford Town Condo. v. Washington Gas Light Co. (In re Bedford Town Condo.)

Before the court was movant debtor's expedited motion to sanction a creditor for violation of automatic stay pursuant to 11 U.S.C.S. § 362(a)(1), (3), (6) for violation of 11 U.S.C.S. § 366(c) (the Sanctions Motion). Respondent creditor, a utility company, did not file a response to the Sanctions Motion, but appeared at the hearing held on the matter and argued against sanctions being imposed.
Ruling: 
Utility termination notice violated stay and gave rise to sanctions.
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Commercial case opionion summary, case decided on September 20,2010, LexisNexis #1110-005

Countrywide Bank v. Beachley (In re Beachley)

Plaintiff bank filed a complaint against defendant debtors and a chapter 13 trustee seeking an equitable lien on the debtors' property. Alternatively, the bank sought a determination that it was equitably subrogated to another lender's deed of trust. The debtors and the trustee contended that neither an equitable lien nor subrogation was available under 11 U.S.C.S. § 544(a)(3). Both sides moved for summary judgment.
Ruling: 
Transfer to bank via unrecorded deed of trust was avoidable without survival of equitable lien or subrogation rights.
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Consumer case opionion summary, case decided on September 16,2010, LexisNexis #1110-023

In re Hall

A townhouse association filed an application for the allowance of administrative expenses under 11 U.S.C.S. § 503(b)(1) on account of unpaid homeowners association dues in the sum of $3,901.25 for the period from February 4, 2004, the day before the filing of the case originally as a case under chapter 7, to May 31, 2010.
Ruling: 
Townhouse association not entitled to administrative expense for unpaid dues.
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Consumer case opionion summary, case decided on August 25,2010, LexisNexis #1010-032

Hale Trailer Brake & Wheel Inc. v. Cramblitt (In re Cramblitt)

Creditor filed an adversary proceeding seeking a determination that a chapter 7 debtor's guaranty obligation was not dischargeable pursuant to 11 U.S.C.S. § 523(a)(2)(A).
Ruling: 
Guaranty obligation of debtor who misrepresented his status as CEO of company receiving credit was nondischargeable.
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Consumer case opionion summary, case decided on August 17,2010, LexisNexis #1010-016

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

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