(Bankr. W.D. Ky. Oct. 16, 2017)
The bankruptcy court overrules the Chapter 7 trustee’s objection to the debtor’s claimed exemption. The debtor moved to reopen her case, add a personal injury cause of action to her schedules, and claim an exemption in a portion of the recovery on the cause of action. The court holds that Law v. Siegel is applicable, and thus the court does not have authority to deny the exemption even if bad faith exists. Opinion below.
Judge: Lloyd
Attorney for Debtor: Darren K. Mexic
Trustee: Jerry Burns
(Bankr. W.D. Ky. Aug. 16, 2017)
(S.D. Ind. June 27, 2017)
(Bankr. S.D. Ind. Apr. 13, 2017)
Following trial, the bankruptcy court enters judgment against the debtor, finding the loan debt owed to the bank is nondischargeable under 11 U.S.C. § 523(a)(2)(B). The court finds that the debtor made false representations with respect to his ownership interest in real property and the existence of a debt owed, which representations were reasonably relied upon by the bank when making the loan. Opinion below.
Judge: Carr
Attorneys for Plaintiff: Riley Bennett & Egloff, LLP, Anthony R. Jost
Attorney for Defendant: KC Cohen
(S.D. Ind. Feb. 17, 2017)
The district court affirms the bankruptcy court’s judgment in favor of the plaintiff trust. The bankruptcy court held that the trust could pierce the corporate veil and hold the debtor personally liable to the trust. The district court analyzes Indiana law on veil piercing and finds no error. Opinion below.
Judge: Young
Attorney for Debtor: Goering Law LLC, Wilmer E. Goering, II
Attorney for Plaintiff: Kroger Gardis & Regas LLP, David E. Wright
(7th Cir. Dec. 21, 2016)
The Seventh Circuit affirms the bankruptcy court’s judgment that certain real property of the debtor was exempt because it was held in a tenancy by the entirety under Illinois law. The creditor argued that the tenancy by the entirety was severed when the real property had been transferred to a trust prepetition. The Seventh Circuit examines applicable Illinois statutes and concludes that the transfer did not sever the tenancy by the entirety. Opinion below
Judge: Posner
Attorney for Debtor: Kofkin Law, Scott J. Kofkin
(Bankr. E.D. Ky. Nov. 1, 2016)
The bankruptcy court grants the debtor’s motion for summary judgment in this 11 U.S.C. § 523(a)(6) nondishargeability action. The plaintiff alleged the debtor willfully and maliciously injured the plaintiff, but failed to offer any evidence that would create a material factual dispute as to the debtor’s intent with respect to actions that gave rise to a prepetition judgment against the debtor. The court finds summary judgment in favor of the debtor is appropriate. Opinion below.
Judge: Wise
The Seventh Circuit dismisses the appeal, holding that the bankruptcy court’s final order implementing the district court’s order directing turnover of assets to the bankruptcy estate was valid, because it resolved a core proceeding. The appellants contended that it was a non-core proceeding and thus required a district court order to be final. Opinion below.
Judge: Posner
Attorney for Appellants: Jordan Law P.C., Terrence M Jordan
(7th Cir. June 10, 2016)
The Seventh Circuit reverses, holding the bankruptcy court applied too narrow of a baseline payment range to the creditor’s ordinary course defense in this preference action. While this court agreed that there were a few payments outside the ordinary course, the new value defense applied to completely offset those payments. Opinion below.
Judge: Sykes
Attorneys for Appellant: Nixon Peabody LLP, Richard Scott Alsterda, Theodore Eric Harman
Attorneys for Appellee: Clark Hill PLC, Pamela Joy Leichtling, Scott N. Schreiber
(Bankr. S.D. Ind. April 11, 2016)