U.S. Trustee v. Jack and Lymor Wasserman, 04 A 04496

Date of Issuance: October 28, 2005 Judge: Jack B. Schmetterer

Comment from Tom Springer

Committee Member and Chapter 7 Panel Trustee Thomas Springer writes:

Ken Gardner, Chief Clerk of the Bankruptcy Court for the Northern District of Illinois, informed me that a large of number of post-October 17 filings were pro-se, meaning that more than likley a wave of dismissal motions will follow based on the filer's non-compliance with the new Code. Another consequence would be a spate of appearances by Attorneys on already filed cases.

Thanks for the tip, Tom.

Spooky cases ... boo!

9th Circuit

Beck v. Pace Int'l Union (10/24/05 - No. 03-15303) Merger into a multiemployer plan is a permissible means of terminating a pension plan under ERISA. 10th Circuit

Cadwell v. Joelson (10/25/05 - No. 04-8052) Plaintiff's loan to defendant is not dischargeable in bankruptcy where defendant's Ownership and Repayment Representations do not constitute statements respecting defendant's financial condition as defined by 523(a)(2)(A).

You knew it was coming ...

Surprise! The number of new bankruptcy cases filed since the new law kicked in has slowed to a trickle. Is this the end of the consumer bankruptcy as we know it, or just the beginning of a ... ah, forget it.

And the hits just keep on coming ...

9th Circuit In re Lehtinen Bankruptcy Attorney/Realtor sanctioned for soliciting Client to list Client's house without disclosing conflict. ________________________ 10th Circuit In re Commercial Financial Services, Inc. Bankruptcy Court did not err in denying $1,000,000 of an investment banker's $1.9 Million Fee Application -- Court properly demanded that the investment banker provide hourly bills rather than flat monthly bills and justify its compensation on that hourly basis. In re Joelson Under 523(a)(2) an oral statement regarding the debtor's financial condition cannot form the basis for a finding of nondischargeability, but a written statement can. For purposes of applying 523(a)(2) a "statement regarding [the debtor's] financial condition" is interpreted strictly to mean one concerning the debtor's overall net worth rather than those pertaining to individual assets. ________________________ In re Kaplan (Bankr. S.D. Fla. 2005) "One conclusion is inescapable. The new law is not a model of clarity." The reform legislation's new $125,000 limit on homesteads applies in all States, not just those that have not opted out. _____________________ In re MDIP, Inc. (Bankr. DE 2005) In the context of motion for summary judgment on the issue of reasonably equivalent value in a constructive fraud case, the Court could not grant summary judgment where a pre-transaction internal report valued the asset transferred to the debtor at less than half of what the debtor paid.

BK Reform Act: Useful Links

For those of us who may not yet have it all together, a few useful links. Feel free to share your own as well: Median Incomes (Census Figures) Current IRS standards also available here Interim Official Rules New and Updated Forms Approved Credit Counseling Agencies Approved Financial Management Course Providers News and Updates about the Reform Act

In re Robert K. Unglaub, Jr. (04 B 19902)/Trustee v Unglaub (04 A 03943)

Blog, Blog, Blog ...

6th Circuit Copper v. Copper (10/18/05 - No. 04-6279) Debtor's right to convert Chapter 7 case to Chapter 13 was not absolute and could be denied due to "bad faith." 7th Circuit Illinois Dep't of Revenue v. Haslett/Judy Oil, Inc. (10/18/05 - No. 04-4053) Proposed plan of reorganization unacceptable under 1129 where it does not explicitly account for interest arising from 3 years of unpaid Illinois Motor Fuel Taxes.

NY Times Op-Ed re new BK Law

This informative post made available courtesy of Tony "the Tiger" Mankus, aka the Tax Man.

Tony, thanks for your continued support and enthusiasm.

Committee of Unsecured Creditors vs. Bank of America, Adv. No. 02 A 00204

Yes, it's true

Yes, it's true -- this past weekend I had the high honor and distinct pleasure of being sworn before the United States Supreme Court along with Kent Gaertner, Katherine Harry, and other members of the DCBA. Way to go ladies and gentlemen. It was a pleasure seeing you in D.C. I was especially impressed to see 7 of the 9 Justices in attendance at the ceremony, including newly minted Chief Justice Roberts. Forgive this impressionable young Attorney for saying so, but it was "cool."

Case Roundup courtesy of Sansa-belt slacks

3rd Circuit Century Indem. Co. v. Congoleum Corp. (10/13/05 - No. 04-3609) In Chapter 11 reorganization, evidence of pre-petition conduct is relevant to a review of a debtor's application to retain law firm as special insurance counsel. 5th Circuit SEC v. Great White Marine & Recreation (10/14/05 - No. 04-50080) In a dispute concerning the distribution order of funds obtained in a civil action, judgment in favor of plaintiff-SEC is affirmed over defendant's claim that the District Court erred by disbursing the funds to equity holders before creditors. 8th Circuit Reynolds v. Pennsylvania Higher Educ. (10/10/05 - No. 04-3192) Bankruptcy court did not err in discharging plaintiff-debtor's student loans under a totality of the circumstances test where the detrimental effect the loans had on plaintiff's mental health constituted an "undue hardship." 9th Circuit Dwyer v. Duffy (10/13/05 - No. 04-55044) The Friday after Thanksgiving is a "legal holiday" in California within the meaning of Rule 9006 of the Federal Rules of Bankruptcy Procedure.

6th Circuit Ruskin v. DaimlerChrysler (10/04/05 - No. 03-1087) Where a debtor's actions provide cause for lifting the automatic stay under 11 U.S.C. section 362(d), the debtor generally cannot move to reclassify the deficiency resulting from the sale of the underlying repossessed collateral as an unsecured claim. 7th Circuit Van Diest Supply Co. v. Shelby County (10/03/05 - No. 03-4144) Dismissal of plaintiff's claim for conversion is affirmed where plaintiff did not present evidence sufficient to prove that it had ownership of the property in dispute. 8th Circuit Hollingsworth v. Kaler (10/03/05 - No. 05-6015) Creditor was entitled to distribution from debtor's bankruptcy estate, even though its claims were untimely filed, since the claims were unsecured claims which were entitled to payment after timely filed unsecured claims were paid in full pursuant to 11 U.S.C. section 726(a)(3). Martens v. Countrywide Home Loans (10/03/05 - No. 05-6023) The Bankruptcy Court's grant of relief from an automatic stay is affirmed over plaintiff-debtor's claim that defendant-creditor violated the Fair Debt Collection Practices Act.

IN re Kreisler, 02-21934/35

Memorandum Opinion by Judge John Squires of the Bankruptcy Court for the Northern District of Illinois, Eastern Division. Opinion deals with subordination of claims by a mortgage lender.

Van Diest Supply Co. v. Shelby County, No. 03-4144 (7th Cir. October 03, 2005)

Dismissal of Plaintiff's claim for conversion is affirmed where Plaintiff did not present sufficient evidence to prove that it had ownership of the property in dispute.