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In re Rudnick

The debtor's former wife moved for a stay pending appeal of the court's order allowing the employment a real estate broker to sell certain real property which she and the debtor co-owned. The former wife made an initial offer to purchase the property. The broker then found a third- party who submitted a higher offer. The former wife wanted to match the offer, but did not want to pay the broker's commission if her offer were accepted.
Ruling: 
Court denied a stay of an order allowing for the hiring of a real estate broker to sell property co-owned by the debtor and the debtor's former wife since requiring the wife to pay a commission to purchase the debtor's interest in the property did not materially harm the wife.
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Gharavi v. U.S. Dept. of Educ. (In re Gharavi)

Plaintiff debtor filed an adversary proceeding seeking the discharge of her student loans pursuant to 11 U.S.C. § 523(a)(8). Defendant creditors defended the complaint by arguing that the debtor had resources to pay the obligation. The court held an evidentiary hearing.
Ruling: 
Court discharged most of the debtor's student loan debt due to undue hardship related to the debtor's multiple sclerosis.
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In re Amherst Techs. LLC

In a core proceeding of 11 jointly administered chapter 7 cases, movant, a newly elected chapter 7 trustee, brought a preliminary objection to resolve a disputed election pursuant to Fed. R. Bankr. P. 2003(d)(2). The U.S. trustee filed a report of the disputed chapter 7 election. The court held a preliminary status meeting and a final hearing to resolve the disputed election.
Ruling: 
Court ruled that the interim trustee had offered sufficient proof that the creditor had an interest materially adverse to the other unsecured creditors and thus was not qualified to request an election and vote for a permanent trustee.
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In re Plymouth Rubber Co.

The debtors, two companies that were being jointly administered in bankruptcy proceedings, filed a motion to allow one of the debtors to make payments pursuant to an employee retention plan so that the debtors could pay benefits owed to the employees once they are terminated during the wind-down of the debtor's manufacturing operations. The debtors claimed the expense was entitled to administrative expense priority under 11 U.S.C. § 503(b)(1).
Ruling: 
Court granted the debtors' motion for authority to make payments under the employee retention plan as an administrative claim so that the debtors could make severance payments when they became due.
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Grosser v. Lang (In re Northeastco Door & Millwork Co.)

Plaintiff seller of total interest in defendant corporate bankruptcy debtor brought an action in state court against the debtor and defendant principal of the debtor, alleging breach of the contract of sale. The bankruptcy trustee removed the action to the bankruptcy court after the debtor filed its bankruptcy petition, and the seller moved for abstention and to remand the action to state court.
Ruling: 
Court abstained from hearing the breach of contact action and remanded it back to the state court since the bankruptcy court could not conduct a jury trial without consent of both parties, which the court did not have.
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Stone v. Casiello (In re Casiello)

After the bankruptcy court entered judgment in favor of defendant debtor, the debtor then filed a motion for sanctions pursuant to 11 U.S.C. § 105(a), 28 U.S.C. § 1927, and Fed. R. Bankr. P. 9011. The bankruptcy court ruled that the motion was untimely. The U.S. District Court remanded the matter, holding that there were no time constraints under 28 U.S.C. § 1927.
Ruling: 
Court held that it had jurisdiction to impose sanctions for attorneys'unreasonable prolonging of proceedings.
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In re Penney

The chapter 7 trustee filed an application to employ counsel. Proposed counsel and his firm represented a secured creditor with a claim against the bankruptcy estate. The issue was whether an actual conflict of interest existed with respect to counsel's dual representation of the creditor and the estate.
Ruling: 
Court denied a trustee's application to employ counsel due to an actual conflict of interest in counsel representing a creditor and the estate.
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Tift County Hosp. Auth. v. Nies (In re Nies)

An adversary proceeding was before the court on a motion for summary judgment filed by plaintiff creditor through which it sought a judgment that a debt owed to it by defendant debtor was a nondischargeable consolidated student loan under 11 U.S.C. § 523(a)(8). Debtor opposed the motion.
Ruling: 
Court denied hospital creditor's motion to declare loan to doctor debtor in exchange for the doctor providing four years of service as nondischargeable since the loan was not an education loan.
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In re Dilley

Chapter 7 debtor filed a motion to dismiss the involuntary chapter 7 petition filed against the debtor pursuant to 11 U.S.C. § 303(b)(1) by petitioners, the estate of his deceased wife and the conservator for each of her two surviving children. The court treated the motion as one for summary judgment because matters outside the pleadings were offered for consideration. Debtor also filed a request for abstention.
Ruling: 
Debtor's not guilty plea in criminal homicide case raised liability dispute warranting dismissal of an involuntary chapter 7 case filed by the deceased's estate and children.
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In re Coastal Bus & Equip. Sales Inc.

Creditor IRS moved for relief from the automatic stay to setoff pre-petition tax overpayments of the debtor against its unpaid tax liabilities incurred during the pendency of its chapter 11 case, including withholding, Federal Insurance Contributions Act ("FICA"), and Federal Unemployment Tax Act taxes.
Ruling: 
IRS was granted right to apply prepetition tax liability refunds against unpaid postpetition tax liability incurred during the debtor's chapter 11 case under a right of recoupment.
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