7th Circuit Opinion Summaries courtesy of Justia.com
United States v. Rogan
Bankruptcy, Criminal Law, Government, White Collar Crime
River Road Hotel Partners, LLC v. Amalgamated Bank
Bloomfield State Bank v. United States
Bankruptcy, Real Estate & Property Law, Tax Law
Costello v. Grundon
Bankruptcy, Commercial Law, Securities Law
CDX Liquidating Trust v. Venrock Assocs., et al
Bankruptcy, Business Law, Securities Law
Reedsburg Util. Comm’n v. Grede Foundries, Inc.
Bankruptcy, Utilities Law
Kimbrell v. Brown
Bankruptcy, Injury Law
Posted in 101, 109(h), 11 U.S.C. § 707(b)(3), 11 U.S.C. section 365(a), 1112(b), 1307, 1308, 1322(b)(11), 1325(a)(5), 1325(a)(9), 1325(b), 1326(a)(1)(C), 1328, 15 USC 1692k(c), 2002, 28 U.S.C. 1927, 3017(d), 342, 362(c)(3)(A), 362(c)(3)(B), 362(c)(4)(A)(i), 363, 451, 18.104.22.168, 502(b)(6), 510, 521, 522, 523, 526(a), 527(a)(2), 528(a), 528(a)(4), 528(b)(2)(B), 547(b), 550, 550(a), 707, 727, 9019, 9023, 9037, adequate protection, adversary, amendment, appellate court, assets, attorneys, audit, automatic stay, automobile, avoidance, bad faith, bank, bankruptcy, Bankruptcy Rules, BAPCPA, blogging, blogs, bubble, business, business filings, call, case update, cash collateral, ch 13, ch 7, cir 7, consumer, current-events, IL, individual, ND, small business
Tagged Bankruptcy, Commercial Law, Criminal Law, law, Lawyers and Law Firms, Services, United States, United States bankruptcy court
Ransom v. FIA Card Services, N.A., f/k/a MBNA America Bank, N.A.
Certiorari from the U.S. Court of Appeals for the 9th Cir., Case 09–907
Argued October 4, 2010—Decided January 11, 2011
The Issue: Here the question was whether a Chapter 13 debtor could deduct the allowable auto payment from his monthly budget even though he did not have a car payment (i.e the vehicle was paid for). Put another way, is it fair for all debtors to be entitled to the maximum allowable deduction from their monthly disposable income, or must debtors establish what they actually pay?
The Answer: The Court ruled 8 to 1 (Scalia J. dissenting) that if a debtor makes more than the median income for his State then he must establish that he incurrs the amounts deducted from his monthly living expenses. No more automatic deductions if debtor cannot prove what he pays.
The Gist: To determine “disposable income” BAPCPA gave us the Means Test, which starts with gross monthly income then deducts living expenses – i.e. “amounts reasonably necessary for maintenance or support” of the debtor. In a Chapter 13 case the expenses considered “reasonably necessary” are identified in 11 U.S.C. §1325(b)(2)(A)(i) and include “applicable monthly expense amounts” as specified in National and Local IRS standards. Since BAPCPA was adopted, it has become common practice to include expenses at the maximum allowable level even if the debtor does not have, or pay for, that type of asset. This case appears to say that the party is over for Chapter 13 debtors.
See Also: this post from Chicago Attorney Steve Jacobowski on the Bankruptcy Litigation Blog regarding the Scalia dissent.
Posted in 101, 109(h), 11 U.S.C. § 707(b)(3), 11 U.S.C. section 365(a), 1112(b), 1307, 1308, 1322(b)(11), 1325(a)(5), 1325(a)(9), 1326(a)(1)(C), 1328, 15 USC 1692k(c), 28 U.S.C. 1927, 362(c)(3)(A), 362(c)(3)(B), 362(c)(4)(A)(i), 363, 451, 502(b)(6), 510, 521, 522, 523, 526(a), 527(a)(2), 528(a), 528(a)(4), 528(b)(2)(B), 547(b), 550, 550(a), 707, 727, 9019, 9023, 9037, adequate protection, administrative, Administrative Office of the Courts, amendment, appellate court, Bankruptcy Rules, BAPCPA, ch 13, cir 9, confirmed plan, Congress, consumer, conversion, cramdown, credit, credit card, credit cards, credit counseling, creditor, current affairs, current-events, data, debt, docket, economics, economy, Executive Office of the UST, fair credit reporting act, FDCPA, Fed. R. Bankr. Proc., Fed. R. Civ. P., individual, interest, legislation, means test, median income, memorandum opinion, Middle class, modification, opinion, research
Tagged BAPCPA, disposable income, IRS, J, Kagan, means test, Scalia, SCotUS
Bankruptcy: In re Stuart M. Hanson, 09-04820
Adversary: 6050 Grant LLC v. Hanson, 09-00447
Opinion issued Oct. 5, 2010 by the Honorable John H. Squires
Upshot: After a hearing the Court determined that $93,461.29 owed by the Debtor to 6050 Grant was non-dischargeable under §523(a)(2)(A). Two weeks after entry of the Opinion, Debtor filed a motion to alter it. According to Rule 59(e) of the Federal Rules of Civil Procedure, incorporated here by Bankruptcy Rule 9023, a judgment may be amended based on one or more of the following: the Court’s manifest error of law or fact, newly discovered evidence, or a change in controlling law. Under the circumstances, the Court found none of these conditions, so the judgment stands.
Click here to view and download the Opinion in .pdf format.
Posted in 523, 526(a), 527(a)(2), 9023, amendment, bad faith, bankruptcy, Bankruptcy Rules, business, case update, ch 7, chapter 7, cir 7, current-events, discharge, dismissal, Fed. R. Bankr. Proc., Fed. R. Civ. P., fraud, fraudulent transfers, IL, individual, liability, motion, ND, opinion, order, research, sanctions, squires
Windt v. Qwest Communications, 06-4662, 06-4808 [June 10, 2008]
In a lawsuit brought by bankruptcy trustees of a Dutch company asserting various claims against defendants who were allegedly responsible for the company’s insolvency, judgment dismissing trustee-plaintiff’s complaint on forum non-conveniens grounds is affirmed where the district court did not abuse its discretion in: 1) affording low deference to plaintiffs’ choice of forum in view of Netherlands’ substantial interest in resolving a dispute concerning alleged mismanagement of a Dutch company by board members and officers of that Dutch company; 2) concluding that avoiding problems in the application of foreign law favored dismissal; 3) balancing the public and private interest factors implicated in the case; and 4) determining that the convenience of litigating the dispute in New Jersey was outweighed by the oppressive or vexatious effect on defendants.
US v. Mitchell, 07-3136 [June 10, 2008]
Conviction upon defendant’s retrial for knowingly and fraudulently making a false statement under penalty of perjury in a bankruptcy case is affirmed where the circuit court declines to revisit a double jeopardy issue, and there was sufficient evidence to sustain his conviction.
ND IL ED
In re Weadley, 06-1854
Bibby Financial v. Weadley, 07-683
Issued June 11, 2008
Judge A. Benjamin Goldgar
Posted in 101, 109(h), 1307, 1308, 1322(b)(11), 1325(a)(5), 1325(a)(9), 1326(a)(1)(C), 1328, 15 USC 1692k(c), 342, 362(c)(3)(A), 362(c)(3)(B), 362(c)(4)(A)(i), 363, 22.214.171.124, 502(b)(6), 510, 521, 523, 527(a)(2), 528(a), 550, 707, 727, 9019, 9023, accounts receivable, adequate protection, administrative, Administrative Office of the Courts, adversary, aoc, appellate court, article, assets, audit, automatic stay, automobile, bad faith, Bankrupt, BAPCPA, black, blogging, Blogroll, blogs, bubble, business filings, CA, call, careers, case update, cash collateral, Census Bureau, ch 11, ch 13, ch 7, chapter 7, cir 1, cir 10, cir 11, cir 2, cir 3, cir 4, cir 5, cir 6, cir 7, cir 8, cir 9, civility, claim preclusion, code, collateral estoppel, Congress, consumer, conversion, county, cox, cramdown, credit, credit counseling, creditor, current affairs, current-events, data, debt, debt relief agency, depreciation, discharge, dismissal, disposable, divorce, doyle, e-discovery, economy, ED, elderly, empty-nest, ESI, estate, estate planning, Executive Office of the UST, fair credit reporting act, FDCPA, Fed. R. Bankr. Proc., fees, filings, FL, FLA, flipping, foreclosure, forms, fraud, fraudulent transfers, goldgar, government unit, grochocinski, hollis, IL, income, IND, individual, interest, investments, IRS, issue preclusion, jobs, joint, judge, lake, landlord/tenant, legislation, leibowitz, liability, lists, means test, median income, Middle class, mortgage, ND, non-debtor spouse, notice, opinion, pay advices, pay.gov, plan, pmsi-nonpossessory, pmsi-possessory, property, reaffirmation, real property, Uncategorized
Bankruptcy: In re Doctors Hospital of Hyde Park, Inc., 00 B 11520
Adversary: Doctors Hospital of Hyde Park v. Desnick, 02 A 00363
See Additional Findings of Fact and Conclusions of Law (July 25)
Judge: Jack B. Schmetterer
Summary: Both sides attempt to re-argue facts and issues settled by the Court the first time around. No new evidence is introduced. The Court rests on its prior opinion.
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