The summaries on this website are summaries of the opinions issued by the judges of the Bankruptcy Court for the Western District of Virginia from October 2004 to date. The opinions may be searched by year, judge, category and chapter. For a more detailed search, enter a keyword in the search box above. This opinion bank, however, is not an exhaustive list of opinions issued by the judges of the Western District. These summaries are not intended to replace other research methods, but may be used as a starting point for your research. These summaries do not contain information as to whether an opinion has been published, appealed or the disposition of any such appeal, or otherwise overruled or affected by subsequent case law or statute. These summaries have been prepared for the convenience of the researcher and in no way constitute an interpretation by the Court of the opinion summarized. Please rely on the opinion not the summary. Please contact Judge Connelly's chambers or Judge Black's chambers regarding any questions or errors.
The Court declined to dismiss the Chapter 7 Debtors' case under section 707(b) for substantial abuse, despite the fact that the Debtors had monthly disposable income, after anayzing the factors outlined in Green v. Staples (In re Green), 934 F.2d 568 (4th Cir. 1991).
The Chapter 13 Trustee objected to a proof of claim as untimely filed because the creditor filed a proof of claim nearly five months after the deadline had passed. The Court found that although the creditor was not included in the creditor mailing matrix, the creditor had actual knowledge of the Debtors' bankruptcy approximately a month before the claims filing period expired. Therefore, the Court sustained the Trustee's objection, and disallowed the claim in its entirety.
The Court held that only the right to receive future accruing rents passed to the grantees of real estate deeds and, because the grantees undertook to pay daily rent until consummating the purchase, the Trustee could recover unpaid rents for the entire pre-transaction period as well as prejudgment interest and and taxable costs incurred.
The court granted the Debtors' motion to impose the automatic stay in their third pending case within one year, because no creditor objected, the male Debtor secured regular employment, and the dental conditions that contributed to the second dismissal had been resolved.
The matter before the Court is the Chapter 7 Trustee's application for compensation and reimbursement of expenses. The Court analyzed whether the fees were reasonable under 11 U.S.C. § 330, and partially disallowed the compensation sought as excessive.
Court determined Chapter 7 trustee's fee using lodestar analysis.
The Court determined that a husband and wife who filed a joint petition are each entitled to a separate homestead exemption under Virginia law, but neither may claim exempt property that is solely the property of the other.
The court denied the U.S. Trustee's motion to dismiss the Chapter 7 case for substantial abuse, because the Debtors could not pay even 5% of unsecured claims in a Chapter 13 plan, child care and medical expenses contributed to the filing, the Debtors did not spend or budget excessively, and the Debtors' schedules were accurately filed.
The Chapter 7 trustee objected to the debtors’ claim of homestead exemptions, arguing that the debtors failed to comply with the requirements of Va. Code § 34-17 by not recording the homestead deed until six days after the debtors’ meeting of creditors. Under Va. Code § 34-17, “[t]o claim an exemption in bankruptcy, a householder . . . shall set such real or personal property apart on or before the fifth day after the date of the meeting held pursuant to 11 U.S.C. § 341, but not thereafter." Each debtor executed a homestead deed for recordation and the debtors' counsel mailed the properly executed deeds to the Clerk of Pulaski County Circuit Court. Unbeknownst to the debtors' counsel, Pulaski County adopted a local rule which required that a cover page accompany deeds, therefore, the deeds were sent back to counsel because they were not accompanied by cover pages. Debtors' counsel then added the required cover pages and hand delivered the documents to the Clerk on the sixth day after the meeting of creditors. The Court found that the debtors’ homestead deeds were valid pursuant to § 34-17, even though it wasn't recorded until the sixth day after the meeting of creditors because the under Virginia law, the homestead deed need not be admitted to record for property to be "set apart in bankruptcy"; rather, a debtor has "set apart" property claimed as exempt once the debtor has delivered a properly executed deed, with fees, paid, to the appropriate clerk. See In re Nguyen, 226 B.R. 547, 551 (Bankr. E.D. Va. 1998).
Creditor objected to confirmation of the debtor's modified Chapter 13 plan. The issue is whether a debtor may, through the provisions of a Chapter 13 plan, modify a creditor's claim that is secured only by an interest in a mobile home and land upon which it rests. Under 11 U.S.C. § 1322(b)(2), a Chapter 13 plan may not modify (1) a secured claim (2) that is the debtor's principal residence (3) that is secured only by an interest in real property. The first two requirements are easily met. The third, however, presents the issue of whether the land and the mobile home, taken together, constitute "real property" as that term is used in Section 1322(b)(2). The Court held that the debtor’s mobile home and land, taken together, does constitute real property that is the debtor’s principal residence. As such, the debtor’s plan may not modify the creditor’s rights in the mobile home and land; the creditor's objection is sustained.