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In re Hereford Biofuels, L.P., (Bkrtcy.N.D.Tex.) -
Wed, 22 Feb 2012 21:04:56 CST
February 22, 2012: Bankruptcy Estate - Insurance proceeds payable upon damage to estate property were included in bankruptcy estate.Even assuming that a Chapter 11 debtor's corporate parent, but for an insurer's fraud or mistake, should have been nam...
In re Hall, (Bkrtcy.D.Idaho) -
Wed, 22 Feb 2012 21:04:56 CST
February 22, 2012: Bankruptcy Estate - Trustee failed to satisfy burden of proof in seeking to deny exemption as fraudulent to creditors.While a close case, a Chapter 7 trustee failed, on balance, to satisfy his ultimate burden of showing that, in us...
In re Andrews, (Bkrtcy.E.D.Ark.) -
Wed, 22 Feb 2012 21:04:56 CST
February 22, 2012: Debtor Protections - Trustee could recover attorney fees and costs from adversary proceeding as compensatory damages for willful stay violation.A Chapter 7 trustee could recover the attorney fees and costs that he incurred in bring...
Parmalat Capital Finance Ltd. v. Bank of America Corp., (C.A.2 (N.Y.)) -
Wed, 22 Feb 2012 21:04:56 CST
February 22, 2012: Jurisdiction - District court was required to abstain from hearing bankruptcy- related state-law claims against auditor for foreign debtors.The bankruptcy-related state-law claims against the auditor for foreign bankruptcy debtors ...
In re Harris Agency, LLC, (Bkrtcy.E.D.Pa.) -
Tue, 21 Feb 2012 22:04:32 CST
February 21, 2012: Avoidance - Adversary complaint did not adequately plead claims to avoid alleged actual fraudulent transfers.An adversary complaint did not adequately plead claims to avoid alleged actual fraudulent transfers. Contrary to the requi...
In re Boykin, (Bkrtcy.S.D.Ala.) -
Tue, 21 Feb 2012 22:04:32 CST
February 21, 2012: Bankruptcy Estate - Debtor-wife was "person effecting the insurance" under policy on husband's life.Under Alabama law as predicted by a bankruptcy judge in that state, an individual Chapter 11 debtor, as both the owner and benefici...
Rahmi v. Trumble, (N.D.W.Va.) -
Tue, 21 Feb 2012 22:04:32 CST
February 21, 2012: Bankruptcy Estate - Trustee had no obligation to limit amount of estate property that he liquidated.A federal district judge in West Virginia has held that a Chapter 7 trustee has no obligation, in liquidating property of the estat...
In re Washington Mut., Inc., (Bkrtcy.D.Del.) -
Tue, 21 Feb 2012 22:04:32 CST
February 21, 2012: Claims - Litigation tracking warrants (LTWs) were in nature of "equity securities," not "debt."Litigation tracking warrants (LTWs) which a bank issued to its existing shareholders, in an attempt to allow them to share in the econom...
In re Iowa Hotel Investors, LLC, (Bkrtcy.N.D.Iowa) -
Tue, 21 Feb 2012 22:04:32 CST
February 21, 2012: Debtor Protections - Chapter 11 debtors' hotels were not "single asset real estate" under Bankruptcy Code.The hotel operations of two Chapter 11 debtors involved more than "operating the real property and activities incidental ther...
In re Apex Long Term Acute Care-Katy, L.P., (Bkrtcy.S.D.Tex.) -
Tue, 21 Feb 2012 22:04:32 CST
February 21, 2012: Jurisdiction - Bankruptcy court had constitutional authority, pursuant to public rights doctrine, to adjudicate preference claims.A bankruptcy court had constitutional authority, pursuant to public rights doctrine, to adjudicate ad...
In re Mastro, (Bkrtcy.W.D.Wash.) -
Tue, 21 Feb 2012 22:04:32 CST
February 19, 2012: Avoidance - Co-trustee of debtor's self-settled trust was liable as initial transferee of fraudulently transferred trust property.The co-trustee of an involuntary Chapter 7 debtor's self-settled trust shared authority with the debt...
In re Garcia, (Bkrtcy.D.Idaho) -
Fri, 17 Feb 2012 21:02:18 CST
February 17, 2012: Avoidance - Debtors' delivery of deed to purchasers was payment on antecedent debt within meaning of preferential transfer statute.Under the terms of their rent-to-own agreement with the purchasers, the Chapter 7 debtors were legal...
In re Perlis, (Bkrtcy.N.D.Ga.) -
Fri, 17 Feb 2012 21:02:18 CST
February 17, 2012: Case Administration - Failure to replace lapsed life insurance was not "cause" for dismissal/conversion of case.An individual Chapter 11 debtor's failure to replace a life insurance policy that had lapsed prepetition, and under whi...
Kelley v. JPMorgan Chase & Co., (D.Minn.) -
Fri, 17 Feb 2012 21:02:18 CST
February 17, 2012: Case Administration - Stern did not provide "cause" for withdrawing reference of fraudulent transfer claims early in litigation.Even assuming that, in the wake of the Supreme Court's Stern v. Marshall decision, a bankruptcy court l...
In re Schrag, (D.Or.) -
Fri, 17 Feb 2012 21:02:18 CST
February 17, 2012: Case Administration - Local rule permitted court to grant relief from Rule 4004(a)'s filing deadline due to court-caused electronic filing problem.A local bankruptcy rule permitting a party to request relief when a filing was untim...
In re C.W. Min. Co., (Bkrtcy.D.Utah) -
Fri, 17 Feb 2012 21:02:18 CST
February 17, 2012: Debtor Protections - Stay violation by fully secured creditor did not authorize lien strip.A fully secured creditor's violation of the automatic stay, in connection with the postpetition transfer of a Chapter 7 debtor's certificate...
In re Mortgage Store, Inc., (D.Hawai'i) -
Fri, 17 Feb 2012 21:02:18 CST
February 17, 2012: Jurisdiction - Mandatory withdrawal of the reference was not warranted in action to avoid alleged fraudulent transfers.Even if the bankruptcy court did not have the jurisdiction to enter a final judgment on a Chapter 7 trustee's fr...
SPCP Group, LLC v. Biggins, (M.D.Fla.) -
Fri, 17 Feb 2012 21:02:18 CST
February 17, 2012: Plans - Absolute priority rule no longer applies to individual Chapter 11 debtors.After passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), the absolute priority rule no longer applies to preven...
In re Sunset Aviation, Inc., (Bkrtcy.D.Del.) -
Thu, 16 Feb 2012 23:04:05 CST
February 16, 2012: Avoidance - Substantive consolidation order did not change petition date, for preference avoidance purposes.An order substantively consolidating the debtor's Chapter 7 case with that of affiliated Chapter 7 debtors was not effectiv...
In re Seafort, (C.A.6) -
Thu, 16 Feb 2012 23:04:05 CST
February 16, 2012: Bankruptcy Estate - Income made available once debtors' 401(k) loan repayments were fully repaid was "projected disposable income."Income made available once the debtors' 401(k) loan repayments were fully repaid was "projected disp...
In re Boise County, (Bkrtcy.D.Idaho) -
Thu, 16 Feb 2012 23:04:05 CST
February 16, 2012: Case Administration - County failed to demonstrate its "insolvency," a necessary prerequisite to eligibility for Chapter 9 relief.A county's failure to process and pay a single category of claims, which represented only a small por...
In re Haacke, (Bkrtcy.D.Mont.) -
Thu, 16 Feb 2012 23:04:05 CST
February 16, 2012: Claims - Objection to proof of secured claim was inappropriate vehicle for addressing validity of lien.A bankruptcy court could not determine the validity of the attorney's charging lien claimed by counsel who had represented the d...
In re Bullock, (C.A.11 (Ala.)) -
Thu, 16 Feb 2012 23:04:05 CST
February 16, 2012: Discharge - "Defalcation" under 523(a)(4) requires a showing of recklessness by the fiduciary.The term "defalcation," as used in the discharge exception for fiduciary fraud or defalcation, requires more than mere negligence but, ra...
Kurz v. EMAK Worldwide, Inc., (D.Del.) -
Thu, 16 Feb 2012 23:04:05 CST
February 16, 2012: Jurisdiction - Filing of proof of claim brought removed state court proceeding within court's "core" jurisdiction.A removed state court action brought by a corporate debtor's director, for enforcement of his contractual indemnifica...
In re Platinum Oil Properties, LLC, (Bkrtcy.D.N.M.) -
Thu, 16 Feb 2012 23:04:05 CST
February 16, 2012: Jurisdiction - Bankruptcy Code abrogates tribal sovereign immunity.Indian tribes fall within the Bankruptcy Code's definition of the term "governmental unit," which includes "other foreign or domestic government." Therefore, a Code...
In re Grier, (Bkrtcy.N.D.Iowa) -
Thu, 16 Feb 2012 23:04:05 CST
February 16, 2012: Plans - Determination of tax refund's status as "projected disposable income" must be made on case-by-case basis.An acknowledgement form which Chapter 13 debtors in the district were required to sign, acknowledging that all tax ref...
In re Haddad, (Bkrtcy.D.Mass.) -
Wed, 15 Feb 2012 21:05:11 CST
February 15, 2012: Bankruptcy Estate - Funds in custodia legis were not included in estate on debtor's bankruptcy filing, only debtor's contingent interest therein.A prepetition order entered by a state court, "impounding" proceeds from the sale of p...
In re Heller Ehrman LLP, (N.D.Cal.) -
Wed, 15 Feb 2012 21:05:11 CST
February 15, 2012: Case Administration - Bankruptcy court lacked constitutional authority to enter final judgment on debtor's fraudulent conveyance counterclaims.The bankruptcy court lacked constitutional authority to enter final judgment on the debt...
In re Canopy Financial, Inc., (N.D.Ill.) -
Wed, 15 Feb 2012 21:05:11 CST
February 15, 2012: Case Administration - Court had authority to hear, and to enter proposed findings of fact and conclusions of law on, fraudulent transfer claims.A federal district judge in Illinois held that, while the United States Supreme Court, ...
In re J.R. Hale Contracting Co., Inc., (Bkrtcy.D.N.M.) -
Tue, 14 Feb 2012 21:00:56 CST
February 14, 2012: Attorney Fees - Under BAPCPA, Chapter 11 counsel's claim for fees and costs had priority in Chapter 7 case, post-conversion, over tax liens.A bankruptcy statute which, as amended by the Bankruptcy Abuse Prevention and Consumer Prot...
In re Harris Agency, LLC, (Bkrtcy.E.D.Pa.) -
Tue, 14 Feb 2012 21:00:56 CST
February 14, 2012: Attorney Fees - Conflict of interest necessitated partial disgorgement of fees.A law firm which, at least by the time the debtor's proposed Chapter 11 plan and disclosure statement were prepared, had received payment of its fees fr...
In re Jin Suk Kim Trust, (Bkrtcy.D.Md.) -
Tue, 14 Feb 2012 21:00:56 CST
February 14, 2012: Case Administration - Trust was "business trust," of kind eligible for Chapter 11 relief.A generation skipping trust established by the mother of the income beneficiary to provide for the income beneficiary during her life, and to ...
In re Clark, (Bkrtcy.D.Idaho) -
Tue, 14 Feb 2012 21:00:56 CST
February 14, 2012: Case Administration - Case would be reopened to allow unscheduled creditors to file nondischargeability proceeding.A no-asset Chapter 7 case would be reopened to allow creditors who were not scheduled in time to permit the timely f...
In re Juvennelliano, (Bkrtcy.D.Del.) -
Tue, 14 Feb 2012 21:00:56 CST
February 14, 2012: Claims - Claim for damages arising from breach of assumed lease was entitled to administrative expense priority in part.The estate clearly benefited from Chapter 13 debtors' postpetition use of a motor vehicle pursuant to an assume...
In re Calabrese, (D.N.J.) -
Tue, 14 Feb 2012 21:00:56 CST
February 14, 2012: Discharge - Debt for sales taxes collected from third parties was nondischargeable "trust fund tax" debt.A Chapter 13 debtor's obligation for unpaid sales taxes collected from the customers of his business was a "trust fund tax" ob...
In re Stevenson, (Bkrtcy.D.Mass.) -
Tue, 14 Feb 2012 21:00:56 CST
February 14, 2012: Discharge - Court could grant debtor a prospective discharge of student loan debt not paid under Income Contingent Repayment Plan.While a 50-plus-year-old Chapter 7 debtor, due to a housing subsidy that she received that reduced he...
In re Khan, (Bkrtcy.E.D.Va.) -
Tue, 14 Feb 2012 21:00:56 CST
February 14, 2012: Discharge - Debtor did not stand in "fiduciary capacity" with respect to gasoline sales proceeds.While the gasoline services agreement between a Chapter 7 debtor and the company whose gas he sold at his franchised service station a...
In re DBSI, Inc., (Bkrtcy.D.Del.) -
Tue, 14 Feb 2012 21:00:56 CST
February 14, 2012: Discharge - State agencies' sovereign immunity was abrogated as to fraudulent transfer claims under strong-arm statute and state laws.The sovereign immunity of state taxing agencies was abrogated with respect to fraudulent transfer...
In re Whittle Development, Inc., (Bkrtcy.N.D.Tex.) -
Mon, 13 Feb 2012 21:02:16 CST
February 13, 2012: Avoidance - Regularly conducted, non-collusive foreclosure sale is potentially avoidable as preference.Allegations in a Chapter 11 debtor-in-possession's complaint, that a prepetition foreclosure sale, while regularly conducted and...
In re McCormick, (C.A.4 (N.C.)) -
Mon, 13 Feb 2012 21:02:16 CST
February 13, 2012: Avoidance - Trustee was entitled to avoid an improperly recorded lien on debtor's real property.A bankruptcy trustee was entitled to avoid a lien on first of two contiguous parcels of the debtor's North Carolina real property becau...
In re Coop de Consumidores del Noroeste, (Bkrtcy.D.Puerto Rico) -
Mon, 13 Feb 2012 21:02:16 CST
February 13, 2012: Bankruptcy Estate - Livestock and poultry seller did not have PASA statutory trust which excluded trust assets from debtor's estate.The invoices sent by a livestock and poultry seller to the debtor- supermarkets operator provided f...
DeWitt Rehabilitation and Nursing Center, Inc. v. Columbia Cas. Co., (S.D.N.Y.) -
Mon, 13 Feb 2012 21:02:16 CST
February 13, 2012: Case Administration - Cause existed for withdrawing reference to bankruptcy court of debtor's adversary proceeding against insurers and agent.Cause existed for withdrawing the reference to the bankruptcy court of the adversary proc...
In re Acosta, (Bkrtcy.D.Puerto Rico) -
Mon, 13 Feb 2012 21:02:16 CST
February 13, 2012: Discharge - Creditor willfully violated discharge injunction by refiling mortgage and pursuing foreclosure proceedings post-discharge.A creditor which had voluntarily withdrawn the debtors' purchase and mortgage deed from the prope...
In re Araujo, (Bkrtcy.N.D.Cal.) -
Mon, 13 Feb 2012 21:02:16 CST
February 13, 2012: Plans - "Blue book" retail price had to be adjusted downward, for "cramdown" purposes.While retail, rather than private party, values for a vehicle in a published motor vehicle "blue book" provided an appropriate starting point in ...
In re Information Network, Inc., (Bkrtcy.D.Md.) -
Sun, 12 Feb 2012 21:05:12 CST
February 12, 2012: Attorney Fees - Denial of special counsel's fees incurred after motion to disqualify adversary defendant's counsel was denied was warranted.Once the bankruptcy court denied a Chapter 7 trustee's motion to disqualify an adversary de...
In re Woodcraft Studios, Inc., (N.D.Cal.) -
Fri, 10 Feb 2012 21:03:43 CST
February 10, 2012: Attorney Fees - Bankruptcy court did not abuse its discretion in denying fees and ordering disgorgement of retainer for attorney's nondisclosure.A California bankruptcy court did not abuse its discretion in denying all fees request...
In re Conant, (Bkrtcy.D.Mass.) -
Fri, 10 Feb 2012 21:03:43 CST
February 10, 2012: Attorney Fees - Fees of $9,583.75 awarded to debtor's counsel where creditor's nondischargeability complaint lacked substantial justification.Where the creditor's amended nondischargeability complaint based on the Chapter 7 debtor'...
In re South Station, LLC, (Bkrtcy.D.Utah) -
Fri, 10 Feb 2012 21:03:43 CST
February 10, 2012: Attorney Fees - Nondisclosure and incomplete disclosure warrant denial of fees.A law firm's failure to disclose a $20,000 prepetition retainer on its Rule 2016 disclosure statement, its incomplete disclosure of the retainer, withou...
In re International Gospel Party Boosting Jesus Groups, Inc., (Bkrtcy.D.Mass.) -
Fri, 10 Feb 2012 21:03:43 CST
February 10, 2012: Bankruptcy Estate - Purchaser of debtor's real property was not entitled to payment of real estate commission as "co-broker."A bankruptcy court made no "manifest error" warranting reconsideration of its compensation orders when, fo...
In re CCT Communications, Inc., (Bkrtcy.S.D.N.Y.) -
Fri, 10 Feb 2012 21:03:43 CST
February 10, 2012: Business Relationships - Common carrier that provided telecommunications services to debtor did not engage in "willful misconduct."Under New York law, the actions of a common carrier that provided telecommunications services to the...
In re Herter, (Bkrtcy.D.Idaho) -
Fri, 10 Feb 2012 21:03:43 CST
February 10, 2012: Claims - Conduct undertaken for claimant's self-interest would not support administrative expense claim.An ex-husband's payoff of a senior deed of trust debt on property in order to avoid foreclosure, following a Chapter 7 debtor-w...
