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UPS Cap. Bus. Credit v. Gencarelli (In re Gencarelli)

At issue was a commercial lender's right to receive a bargained-for prepayment penalty from a solvent debtor. Defendant creditor sought review of a decision of the District Court for the District of Rhode Island, which held that 11 U.S.C. § 506(b) governed and that it could recover prepayment penalties only if they were reasonable; it further affirmed a bankruptcy court's determination that they were not.
Ruling: 
Bankruptcy court erred in disallowing claim for prepayment penalties based on standards for priority rather than allowability.
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United States v. Hyde

The District Court for the District of Massachusetts ruled that defendant bankruptcy debtor's restitution order, imposed in a criminal case, created an entirely new obligation owed to plaintiff United States unaffected by the debtor's homestead exemption and 11 U.S.C. § 522(c), and the United States could enforce its garnishment order against sale proceeds of the debtor's home. The debtor appealed the district court's order.
Ruling: 
Obligation under Mandatory Victims Restitution Act was not subject to homestead exemption.
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McGarry v. Chew (In re Chew)

Appellant siblings, who were referred to as creditors, challenged a decision of the District Court for the District of Massachusetts, which held that their arguments regarding their respective shares in appellee debtor's claimed state homestead exemption under 11 U.S.C. § 522(b) were barred by principles of claim preclusion due to their prior state court claims.
Ruling: 
Creditors'constructive trust arguments regarding debtor's homestead exemption should have been asserted in state court and properly barred by bankruptcy court.
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Whispering Pines Estates Inc. v. Flash Island Inc.

Appellant debtor challenged an order of the Bankruptcy Court for the District of New Hampshire confirming the third-party plan put forth by appellee, its secured creditor.
Ruling: 
Confirmation of third party plan reversed due to improper release of secured creditor proponent.
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Segarra Miranda v. Garrido Pagan (In re Garrido Jimenez)

Defendant transferees appealed a decision of the Bankruptcy Court for the District of Puerto Rico that granted summary judgment in favor of plaintiff chapter 7 trustee. The issue was whether the trustee was entitled to avoid the prepetition transfer of real estate to the transferees where the deed was not recorded until after the commencement of the debtor's bankruptcy case.
Ruling: 
Trustee could avoid prepetition transfer of real estate that was not recorded until after petition date.
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Whispering Pines Estates Inc. v. Flash Island Inc. (In re Whispering Pines Estates Inc.)

Appellant debtor challenged two decisions of the Bankruptcy Court for the District of New Hampshire that confirmed its chapter 11 plan and granted appellee creditor relief from the automatic stay. The bankruptcy appellate panel only addressed the issues presented in the stay relief order. The question was whether the bankruptcy court had jurisdiction to enter the stay relief order while the confirmation order was on appeal.
Ruling: 
Bankruptcy court lacked jurisdiction to order relief from stay while appeal of confirmation order was pending.
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Jones v. Boston Gas Co. (In re Jones)

Appellant debtor sought review of an order of the Bankruptcy Court for the District of Massachusetts, which denied her claim for sanctions against appellee utility and determined that the utility's termination of her gas service for failure to pay postpetition bills was permitted by 11 U.S.C. § 366(b) and did not violate the automatic stay under 11 U.S.C. § 362.
Ruling: 
Utility could discontinue debtor's gas service for failure to make postpetition payments.
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Fields Station LLC v. Capitol Food Corp. (In re Capitol Food Corp.)

Appellant, the corporate owner of commercial premises upon which appellee debtor sought to reorganize under chapter 11 and reopen as a food market, challenged, on appeal of the District Court for the District of Massachusetts'intermediate affirmance, the judgment of the bankruptcy court which denied the owner's motion to dismiss the chapter 11 petition on the ground that it was not filed in good faith.
Ruling: 
Potential loss of lease that would have eliminated chances for reorganization provided grounds for bona fide chapter 11 petition.
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Eastern Savings Bank v. LaFata (In re LaFata)

Before the court were two appeals. In the first, appellant bank challenged an order of the District Court for the District Court of Massachusetts which allowed the bifurcation of appellee debtor's chapter 13 claims. The bank also appealed an order of the Bankruptcy Appellate Panel of the First Circuit (Panel) which denied its Fed. R. Civ. P. 60(b) motion seeking reconsideration of three orders decided in the debtor's favor.
Ruling: 
Banktuptcy court properly bifurcated mortgage claim secured by two lots where home was mistakenly built on dividing property line.
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Ford v. Skorich (In re Skorich)

Appellee wife filed for divorce. Debtor husband filed a bankruptcy petition. The wife filed a motion with the bankruptcy court to obtain escrowed funds awarded to her in the divorce. Appellant trustee argued that the transfer to escrow agents was a preferential transfer avoidable under 11 U.S.C. § 547. The District Court for the District of New Hampshire held that the trustee could not avoid the transfer. The trustee appealed.
Ruling: 
Deposit of funds into escrow for benefit of debtor's former spouse pursuant to divorce decree was not a preferential transfer.
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