Creditors and debtors objected to counsel's fee application, saying much of the work done was not of benefit to the estate. The Court agreed that there were areas of concern about the work as well as the source of the retainer and reduced the final award.
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The court denied without prejudice a lender's motion for relief. The debtors offered adequate protection and filed a plan, disclosure statement, and exhibits which appeared to rebut the bank's assertion that a confirmable plan was not feasible.
The court overruled the debtors' objection to claim regarding a note they co-signed, finding their defenses of novation, accord and satisfaction, and laches to be inapplicable, but also finding that the lender overstated the amount of the claim.
Reported at 428 B.R. 511. The court denied the debtor's motion to use cash collateral because the debtor was unable to provide adequate protection for the creditors' interests without using a related company's assets, which it lacked authority to do.
The debt to the bank was excepted from discharge because the debtor's actions in selling the bank's collateral without permission was willful and malicious. The conduct did not constitute embezzlement. The bank was entitled to legal fees as well.
The debtor's motion for summary judgment was denied because the debtor's actions in refusing to turn over check proceeds upon which the plaintiff held an attorney's lien may render the debt non-dischargeable under § 523(a)(2)(A) or § 523(a)(4).
Reported at 416 B.R. 666. Debtor's proposed plan was not confirmable because it was not filed in good faith and it discriminated against his former wife, who held a $400,000 domestic support obligation claim, by delaying reasonable payments to her.
Reported at 417 B.R. 593. The court warned the debtors that executing an payment agreement to delay a trustee's sale but defaulting within weeks and filing bankruptcy "comes very close to not meeting the ‘smell test' with regard to good/bad faith."
The Nebraska HHS Department's post-petition letters to the debtor were efforts to collect a debt and thus were willful violations of the automatic stay. Sovereign immunity did not protect the State from sanctions for the debtor's actual damages.
The plaintiff had a contract with the debtor's companies. The companies did not remit certain proceeds to the plaintiff. The plaintiff was unable to establish that the debt was non-dischargeable as to the debtor under § 523(a)(2), (a)(4), or (a)(6).