(Bankr. S.D. Ind. Oct. 19, 2017)

(Bankr. E.D. Ky. Oct. 12, 2017)

The bankruptcy court awards damages to the debtor for the creditor’s willful violation of the automatic stay. The debtor had an agreement with the tanning bed salon in which the salon would deduct a monthly payment from her debit card. Despite numerous notifications of the bankruptcy and the violation of the automatic stay, the salon continued to make the deductions post-petition. The court enters an award for damages that includes attorney fees and punitive damages. Opinion below.

Judge: Wise

Attorney for Debtor: Grant M. Axon

(6th Cir. Oct. 6, 2017)

The Sixth Circuit affirms the bankruptcy court’s dismissal of the 11 U.S.C. § 727 complaint. The plaintiff is the debtor’s ex-husband. The court holds that the plaintiff does not have standing to bring the complaint. The only debt owed to him was already nondischargeable under 11 U.S.C. § 523(a)(15) because it was incurred in connection with a divorce decree. Opinion below.

Judge: Bush

Attorney for Appellant: Kenneth R. Beams

Appellee: Pro Se

(E.D. Ky. Oct. 6, 2017)

The district court affirms the bankruptcy court’s order granting the trustee’s motion to dismiss the complaint. The trustee has the exclusive right to pursue claims asserted in the complaint. The appellant’s arguments that the lawsuits were distinct are rejected. If the appellant and trustee could both pursue the claims there would be a significant chance of a double recovery. Opinion below.

Judge: Wilhoit

(E.D. Ky. Oct. 3, 2017)

The district court affirms the bankruptcy court’s interpretation of a final cash collateral order, holding the bankruptcy court did not abuse its discretion in finding a carve-out for payment of professional fees included prepetition collateral of the lenders. The text of the order along with a review of the case record made clear that the parties had agreed the prepetition collateral was included. $2.4 million in fees were awarded. Opinion below.

Judge: Wilhoit

(Bankr. E.D. Ky. Oct. 4, 2017)

The bankruptcy court grants in part the debtor’s motion to avoid a judicial lien on two parcels of real property. Applying the formula in 11 U.S.C. § 522(f), the court determines that the debtor’s exemption is impaired with respect to one parcel but not the other. Opinion below.

Judge: Schaaf

Attorneys for Debtor: Michael B. Baker, James R. Westenhoefer

Attorneys for Creditor: DelCotto Law Group PLLC, Sara A. Johnston

(Bankr. W.D. Ky. Sep. 28, 2017)

The Sixth Circuit affirms the bankruptcy court’s interpretation of the creditor’s settlement agreement with the debtor. The agreement provided that the creditor released his claims against the city and the individual officers. The plan only provided for a small percentage to be paid on the claim, but stated claims against individual officers were not discharged by the plan. The creditor argued the settlement agreement should not be held to have released claims against the individual officers, but the court finds the plain language of the agreement makes clear such claims were released.

(Bankr. E.D. Ky. Sep. 15, 2017)

The bankruptcy court denies the lender’s motion to dismiss the Chapter 11 bankruptcy. The lender argued that the party signing the debtor’s petition did not have the requisite authority to commence a bankruptcy case for the debtor. The bankruptcy court finds that amendments to the debtor’s operating agreement were made for the sole purpose of eliminating the debtor’s ability to file for bankruptcy without the lender’s consent. The court finds this violates Federal public policy and the provisions are unenforceable. Opinion below.

Judge: Schaaf

(Bankr. S.D. Ind. Sep. 14, 2017)

The bankruptcy court grants the university’s motion for summary judgment, determining that the student loan debt is nondischargeable. The debtor filed the adversary proceeding alleging repayment would present an undue hardship. The debtor did not respond to the university’s motion and failed to present any evidence to satisfy the Brunner test. Opinion below.

Judge: Carr

Attorney for Debtor: Eric C. Redman, Redman Ludwig PC

Attorney for University: Constantine Alexander Hortis, Maryland Attorney General