LexisNexis® Mealey's™ Bankruptcy Legal News
BROOKLYN, NY - A New York bankruptcy judge on Oct. 30 denied a trustee's motion seeking a ruling that a debtor had abused the bankruptcy code and said that given the assets available in the bankruptcy estate, the trustee should be able to make a distribution to the creditors (In Re: Dimitry Perelman, No. 108-45953, Chapter 7, E.D. N.Y. Bkcy.; 2009 Bankr. LEXIS 3353).
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CEDAR RAPIDS, Iowa - An Iowa bankruptcy judge on Nov. 10 ruled that a debtor couple's motion for contempt against a creditor for violating the automatic stay was valid based on notices the creditor sent to the debtors seeking payments of certain obligations while the matter was pending (In Re: Edward William Edmonds, et al., No. 09-01328, Chapter 7, N.D. Iowa Bkcy.; 2009 Bankr. LEXIS 3477).
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DENVER - A panel of the 10th Circuit U.S. Court of Appeals on Nov. 3 reversed a ruling that approved a trustee's sale agreement pertaining to the sale of an asset in a bankruptcy estate, ruling that a creditor's appeal had merit (Search Market Direct Inc. v. Gary E. Jubber [In Re: Steve Zimmer Paige], No. 08-4104, Chapter 7, 10th Cir.; 2009U.S. App. LEXIS 24131).
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CEDAR RAPIDS, Iowa - An Iowa bankruptcy judge on Nov. 9 ruled that a debtor could not avoid a lien placed on a bankruptcy estate because the lien did not impair the homestead exemption (In Re: Michael M. Malatek, No. 03-02281, Chapter 7, N.D. Iowa, Bkcy.; 2009 Bankr. LEXIS 3474).
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NEW ORLEANS - A panel of the Fifth Circuit U.S Court of Appeals on Nov. 11 upheld a lower court's ruling that sanctions were appropriate against the trustee of a trust that a debtor used to fraudulently transfer assets before filing bankruptcy (Ronald E. Ingalls v. Tommy Thompson [In Re: Gary L. Bradley], No. 08-50587, Chapter 7, 5th Cir.; 2009 U.S. App. LEXIS 24763).
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SPRINGFIELD, Ill. - An Illinois federal bankruptcy judge ruled Nov. 12 that a debtor couple was entitled to money for parochial school tuition and did not need to forfeit that money to repay their creditors (In Re: Jeffrey A. Urquhart, et al., No. 09-71058, Chapter 13, C.D. Ill. Bkcy.; 2009 Bankr. LEXIS 3526).
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BOSTON - A panel of the First Circuit U.S. Court of Appeals on Nov. 6 reversed a bankruptcy panel ruling that the claim held by a debtor's former wife did not constitute alimony and could be discharged (Nelson J. Smith v. Rita A. Pritchett [In Re: Nelson J. Smith], No. 09-9005, Chapter 13, 1st Cir.; 2009 U.S. App. LEXIS 24439).
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CINCINNATI - A Sixth Circuit U.S. Court of Appeals panel on Nov. 13 affirmed a bankruptcy court's ruling that disallowed a lender from filing an informal proof of claim because it missed the deadline for doing so (PCFS Financial v. Lydia E. Spragin [In Re: Michael Mark Nowak, et al.], No. 08-3690, Chapter 7, 6th Cir.; 2009 U.S. App. LEXIS 24915).
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SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals ruled Nov. 5 that it lacked jurisdiction to hear an appeal of an equitable tolling ruling in a bankruptcy case, saying that it did not want to create an "asymmetric" rule permitting appellate jurisdiction whenever a lower court rejected a statute of limitations defense (Congrejo Investments v. Diane M. Mann [In Re: William P. Bender], No. 08-15027, Chapter 7, 9th Cir.; 2009 U.S. App. LEXIS 24347).
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PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on Nov. 12 affirmed a district court's ruling that a lender was entitled to summary judgment dismissal of a debtor couple's adversary complaint because they had failed to show that the mortgage company was liable for a violation of federal lending law (Deborah A. Madera, et al. v. Ameriquest Mortgage Company [In Re: Deborah A. Madera, et al.], No. 08-2205, Chapter 13, 3rd Cir.; 2009 U.S. App. LEXIS 24804).
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SPRINGFIELD, Ill. - An Illinois federal bankruptcy judge on Nov. 12 ruled that a creditor was not bound by a Chapter 13 payment plan because it did not receive proper notice of the initial filing and missed its chance to object to the payment plan when it was proposed (In Re: Theodore G. Stassi, et al., No. 09-71563, Chapter 13, C.D. Ill; 2009 Bankr. LEXIS 3527).
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CINCINNATI - A panel of the Sixth Circuit U.S. Court of Appeals on Nov. 6 affirmed a lower court's ruling and determined that a debtor could not object to a proof of claim the U.S. government filed for unpaid taxes even though the taxes were related to the business activities of a company the debtor co-owned with her husband (Nirmala Noronha v. Internal Revenue Service, No. 08-6261, Chapter 13, 6th Cir.; 2009 U.S. App. LEXIS 24489).
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LOS ANGELES - A U.S. Tax Court judge on Nov. 2 ruled that a debtor's argument that the U.S. government was not entitled to collect unpaid taxes because his bankruptcy had been discharged was "meritless" (Jimmy Asiegbu Prince v. Commissioner of Internal Revenue, No. 13858-08L, Chapter 7, U.S. Tax; 2009 U.S. Tax. Ct. LEXIS 32).
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WASHINGTON, D.C. - The U.S. Supreme Court on Nov. 2 granted review of a case in which a trustee is asking the court to determine whether the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) eliminated judicial discretion by requiring an above-median-income debtor to pay to unsecured creditors the net result reported on Official Form 22C. The high court will consider a limited question contained in the case (Jan Hamilton v. Stephanie Kay Lanning, 08-0998, U.S. Sup.; See 6/17/2009).
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MONTGOMERY, Ala. - A national association that represents consumer bankruptcy attorneys on Oct. 30 filed an amicus brief in a case contending that the plain language of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 calls for unemployment compensation to be excluded from a debtor's calculation of current monthly income (Robert L. Washington III, et al. v. Curtis C. Reding [In Re: Robert L. Washington III, et al.], No. 09-00579, Chapter 13, M.D. Ala.).
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BOSTON - A U.S. Bankruptcy Appellate Panel for the First Circuit on Oct. 23 affirmed a bankruptcy court's ruling that denied a debtor couple damages on a clear violation of the automatic stay because they failed to provide the evidence needed to make a determination (Luis G. Vazquez Laboy, et al. v. Doral Mortgage Corporation, et al. [In Re: Luis G. Vazquez, et al.], No. 08-095, Chapter 7, BAP 1st Cir.; 2009 Bankr. LEXIS 3252).
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BOSTON - The U.S. Bankruptcy Appellate Panel for the First Circuit on Oct. 23 affirmed a bankruptcy court's ruling and found that a creditor was not entitled to relief from the automatic stay he sought to pursue an underlying lawsuit against the debtor (Christopher Parker v. Michelle J. Handy [In Re: Michelle J. Handy], No. 09-020, Chapter 7, 1st Cir. BAP; 2009 Bankr. LEXIS 3220).
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TRENTON, N.J. - A New Jersey federal judge on Oct. 22 affirmed a bankruptcy court's ruling that denied a debtor a discharge for undue hardship, finding that she did not carry her burden of proof to show that she was entitled to it (Yana L. Vasilyeva v. Educational Resources Institute, No. 09-709, Chapter 7, D. N.J.; 2009 U.S. Dist. LEXIS 98400).
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JEFFERSON CITY, Mo. - A Missouri federal judge on Oct. 19 ruled that a debtor lacked standing to bring an action for monetary damages against her former employer for alleged violations of federal law related to taking medical leave from her job because the case did not constitute a "core proceeding" (Elizabeth Sherrell v. WIL-BFK Food Services Inc., No. 09-04072, Chapter 11, W.D. Mo.; 2009 U.S. Dist. LEXIS 96721).
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NEW YORK - A New York federal bankruptcy judge on Oct. 16 dismissed a debtor's case against a third-party property appraiser, ruling that the debtor could not bring an action against the company because it acted as a bankruptcy trustee in valuing assets to be sold (John S. McClelland v. Grubb & Ellis Consulting Services Company, No. 03-37997, Adv. No. 07-9014, Chapter 11, S.D. N.Y. Bkcy.; 2009 Bankr. LEXIS 3131).
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TRENTON, N.J. - A New Jersey federal judge on Oct. 22 affirmed a bankruptcy court's ruling and determined that a mortgagee's loan held a higher priority as a claim than the debtor couple had initially indicated on their bankruptcy schedules (Bank of New York Trust Co. v. Unity Bank [In Re: Ilea Awed, et al.], No. 09-3322, Chapter 13, D. N.J.; 2009 LEXIS 98401).
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PHILADELPHIA - A panel of the Third Circuit U.S. Court of Appeals on Oct. 20 affirmed a lower court ruling that a mortgage holder could force a debtor to subordinate his interest in property that had been mortgaged to pay his creditors (In Re: Victor Mondelli, No. 08-3905, Chapter 7, 3rd Cir.; 2009 U.S. App. LEXIS 22986).
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SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals on Oct. 29 affirmed a lower court's ruling that a creditor was not permitted to sue a trustee for his distribution of proceeds gained through the sale of a debtor's house because the creditor lacked standing (Mel M. Marin v. Randall P. Sanders [In Re: Milivoj Marinkovic], No. 08-17273, Chapter 11, 9th Cir.; 2009 U.S. App. LEXIS 23880).
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WASHINGTON, D.C. - The U.S. solicitor general on Sept. 29 filed an amicus brief in the U.S. Supreme Court, urging the high court to review the question of whether the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 eliminates judicial discretion by requiring an above-median-income debtor to pay unsecured creditors the net result reported on Official Form 22C (Jan Hamilton v. Stephanie Kay Lanning, 08-0998, U.S. Sup.).
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CHICAGO - A panel of the Seventh Circuit U.S. Court of Appeals on Oct. 7 ruled that a bankruptcy court erred when it dismissed a creditor's adversary complaint as untimely and held that the bankruptcy court should rule on the dischargeability of a judgment in an underlying state court judgment (Mercantile National Bank of Indiana v. James E. Rose [In Re: James E. Rose], No. 08-3431, Chapter 11, 7th Cir.; 2009 U.S. App. LEXIS 22022).
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RICHMOND, Va. - A panel of the Fourth Circuit U.S. Court of Appeals on Oct. 15 affirmed the nondischargeability of a debt, ruling that the debtor had obtained the money at issue as a result of fraud (Ultra Litho PYT v. Jeffrey F. Moore, No. 08-1508, Chapter 7, 4th Cir.; 2009 U.S. App. LEXIS 22670).
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SPRINGFIELD, Ill. - An Illinois federal judge on Oct. 9 partially affirmed and partially reversed a bankruptcy court's ruling and held that although a debtor did not commit a fraudulent transfer, he made intentionally misleading statements under oath (Jeffrey D. Richardson v. Chaddrick Raymond Carver [In Re: Chaddrick Raymond Carver], No. 09-3167, Chapter 7, C.D. ill.; 2009 U.S. Dist. LEXIS 93751).
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BOSTON - A panel of the First Circuit U.S. Court of Appeals on Oct. 15 affirmed a bankruptcy court's ruling and held that a debtor's transfer of funds to a creditor was an avoidable preference under the Bankruptcy Code (Lynne F. Riley v. National Lumber Company [In Re: Richard A. Reale Jr.], No. 08-9010, Chapter 7, 1st Cir.; 2009 U.S. App. LEXIS 22696).
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NEW YORK - A panel of the Second Circuit U.S. Court of Appeals on Oct. 9 affirmed a lower court's ruling that reversed a bankruptcy court decision and held that negative equity is properly included in a purchase money security interest (PMSI) (George M. Reiber v. GMAC [In Re: Faith Ann Peaslee], No. 07-3962, Chapter 13, 2nd Cir.; 2009 U.S. App. LEXIS 22236).
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DENVER - A panel of the 10th Circuit U.S. Court of Appeals on Oct. 9 ruled that a debtor's appeal of a bankruptcy court's dismissal of her sixth consecutive petition was frivolous and sanctioned her (Harmon Family Trust v. Shirley Levingston Thomas, No. 09-6015, Chapter 13, 10th Cir.; 2009 U.S. App. LEXIS 22310).
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SAN FRANCISCO - A panel of the Ninth Circuit U.S. Court of Appeals on Oct. 8 affirmed a lower court's ruling that held that a debt owed to an insurance company was nondischargeable, ruling that the insurer's claim was timely filed and the debtor was not denied a trial, as he had contended (Russell D. Ward v. The Paul Revere Insurance Company, 08-60030, Chapter 7, 9th Cir.; 2009 U.S. App. LEXIS 22226).
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FORT WAYNE, Ind. - An Indiana federal judge on Oct. 6 granted a creditor's motion for clarification on an order that held that the creditor's civil rights action against the debtor belonged to the bankruptcy estate and ordered the creditor to declare whether his action was on his own behalf or on the behalf of the creditors at large (Anthony Williams v. Rob Hainje, No. 06-121, Chapter 13, N.D. Ind.; 2009 U.S. Dist. LEXIS 93174: See 9/16/09).
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CLEVELAND - An Ohio federal judge on Oct. 7 granted a creditor's request for a stay of a bankruptcy order, holding that issues pending in the bankruptcy appeal required keeping the status quo while the appeal was pending and finding that "irreparable harm" could befall the creditor from the order if the stay were not granted (Countrywide Home Loans Inc. v. Daniel M. McDermott, No. 09-82, Chapter 13, N.D. Ohio; 2009 U.S. Dist. LEXIS 93456).
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DENVER - A panel of the 10th Circuit U.S. Court of Appeals on Oct. 15 affirmed a lower court's ruling that a debtor was not entitled to recoup disability payments when he still owed a debt to the agency that administered those benefits (Samuel Kenneth Beaumont Sr. v. Department of Veteran Affairs [In Re: Samuel Kenneth Beaumont Sr.), No. 09-7006, Chapter 7, 10th Cir.; 2009 U.S. App. LEXIS 27869).
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