In re Jackson (Case No. 05-61204-7) 02/24/2006
The Court declined to dismiss the Chapter 7 case for substantial abuse under section 707(b) after weighing the factors outlined by Green v. Staples (In re Green), 934 F.2d 568 (4th Cir. 1991).
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Opinions
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.
In re Moon (Case No. 05-61873) 2/24/2006
The United States Trustee filed a motion to dismiss this case as an abuse of the provisions of Chapter 7 of the Bankruptcy Code, pursuant to 11 U.S.C. § 707(b). Section 707(b)(1) provides that a court may dismiss an individual case under Chapter 7 if (1) the debtor’s debts are primarily consumer debts and (2) it would be an abuse of the provisions of Chapter 7 of the Bankruptcy Code to grant relief to the debtor. Section 707(b)(2) provides that abuse is presumed if a debtor's net monthly income exceeds a certain threshold amount as determined by the means test. Section 707(b)(3)(B) provides that if the presumption in Section 707(b)(2) does not arise or is rebutted, the court must consider the totality of the debtor's financial circumstances in determining whether proceeding in Chapter 7 would be an abuse. The United States Trustee has the burden of proof to prove by a preponderance of the evidence that allowing the Debtor to continue in Chapter 7 would constitute abuse.
The Court, applying the factors enumerated by the Fourth Circuit in Green v. Staples (In re Green), 934 F.2d 568 (4th Cir. 1991), concluded that it would not be a substantial abuse to permit the Debtor to continue under Chapter 7. Although the Debtor might have some disposable income to fund a Chapter 13 plan, there is a significant possibility that the plan would not be feasible. While the Debtor did not experience a financial trauma, there is nothing else on the record indicative of substantial abuse. Accordingly, the Court denied the United States Trustee's motion to dismiss this case for abuse.
U.S. Trustee v. Richardson (In re Richardson) (Case No. 05-60484; A.P. No. 05-06040) 02/21/2006
Court denied Chapter 7 debtor's discharge under Section 727 for failing to maintain business records, making a false oath in connection with the case, and failing to disclose assets. Dispite evidence of bad faith, the case was not dismissed so as to protect creditors' interests.
Gilliam, et al. v. Household Realty Corp. of Virginia (In re Gilliam) (Case No. 05-63307-13, A.P. No. 05-06084) 02/21/2006
The Court declared a wholly unsecured thrid priority lien on the Chapter 13 Debtor's real property an unsecured claim for the pendency of the case, but declined to declare the lien void until the Debtor received a discharge.
In re Tuggle (Case No. 04-64212) 02/21/2006
Court determined Chapter 7 trustee's compensation using lodestar anaysis.
Callahan, Jr., Trustee v. Lambert (In re Lambert Oil Co., Inc.) (Case No. 03-01183; A.P. No. 05-07040) 02/16/2006
The court held that a loan made by the Debtor corporation to its sole shareholder for the purpose of acquiring another corporation, which was merged into the Debtor, was a personal loan. The sole shareholder also owed pre-judgment interest on the amount owed to the Debtor from the time the Debtor became insolvent. The sole shareholder could, however, setoff his right to reimbursement for partial payment on a debt he guaranteed for the Debtor.
Wolfe v. Middleton (In re Middleton) (Case No. 04-01475; A.P. No. 05-05015) 2/14/2006
The Chapter 7 Trustee filed a Complaint to avoid the debtor's prepetition conversion of cash into a Roth IRA and life insurance policy as a fraudulent transfer pursuant to 11 U.S.C. § 548(a)(1). The Court held that the debtor's use of cash to purchase the IRS and life insurance policy constituted a "transfer" or property within the scope of Section 548 because the debtor's interest in the property changed. However, the Court did not address the ultimate question of whether the debtor's admitted intent to convert the non-exempt cash into exempt property is sufficient evidence for the trustee to prevail, and continued that issue for a future hearing.
In re Wolfe (Case No. 05-74781) 02/13/2006
The court ordered an evidentiary hearing to determine the Debtors' interest in real property when the Debtors filed bankruptcy after a foreclosure sale but before a memorandum of sale was prepared.
Brandon, et al. v. Conseco Finance Serv. Corp. (In re Brandon) (Case No. 05-61502; A.P. No. 05-06062) 02/13/2006
The Court declared a wholly unsecured second lien on the Chapter 13 Debtor's real property an unsecured claim for the pendency of the case, but declined to declare the lien void until Debtor recieved discharge.
Brandon, et al. v. Homecoming Financial Network (In re Brandon) (Case No. 05-61502; A.P. No. 05-06063) 02/13/2006
The Court declared a wholly unsecured lien on the Chapter 13 Debtor's real property an unsecured claim for the pendency of the case, but declined to declare the lien void until the Debtor received a discharge.