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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

Smith v. Oak Grove Util. Co. LLC (In re Smith)

Plaintiff chapter 13 debtor sued defendant creditor, alleging that the acceleration of the debtor's postpetition obligations for the remaining term of a declaration for deferred water and sewer charges was a gross violation of the 11 U.S.C.S. § 362(a) automatic stay, and that the creditor's proof of claim was false, fraudulent, and not a valid debt. The creditor moved to compel discovery and for discovery sanctions.
Ruling: 
Debtor sanctioned for failure to respond to interrogatories related to claim it had alleged was false.
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Consumer case opionion summary, case decided on January 16,2009, LexisNexis #0309-029