The debtor's pre-petition renunciation of his interest in a decedent's estate may constitute a fraudulent transfer, as the right to exercise the power to disclaim an inheritance may be a property interest which became part of the bankruptcy estate
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Opinions
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Debtors have an absolute right to dismiss their Chapter 12 case, but the court is obligated to protect the integrity of the bankruptcy system, so this dismissal should be subject to a refiling limitation in light of fraud allegations against the debtors.
The court denied discharge under § 727(a)(5) because debtor – a sophisticated businessman – couldn't adequately explain the disappearance of more than $100,000 in assets, and under § 727(a)(3) because he failed to keep or produce financial records.
While debtors' plan was silent on the treatment of the county's real estate tax lien, Nebraska law as applied by the state and bankruptcy courts acknowledges the county's lien priority, so, upon sale, taxes should be paid ahead of the secured creditors
The court ruled that the bank didn't have a security interest in wife's half of the farm assets because she didn't execute any security instruments. The bank did hold a security interest in post-petition crops planted with pre-petition cash advances
Robert & Dorothy Kopecky v. James Kopecky (In re James Kopecky), Ch. 7, BK87-2833, A88-70 08/26/1988
Co-debtors who paid off a debt to prevent foreclosure had standing to pursue an adversary proceeding under §§509 and 510 because the trustee did not properly abandon the property and because their payment may have given the debtor equity in the property.
The debtor's appeal to the district court was dismissed because he failed to abide by procedural rules and timely file a designation of record or statement of issues despite being granted repeated extensions of time to do so
The court found debtor to be eligible for Chapter 13 relief because his non-contingent, liquidated, unsecured debts were below the § 109(e) limit and because, although self-employed, he had sufficient regular income to maintain repayment of debts
Debtor was owed money by his former employer. He also signed a promissory note for money owed to the former employer. When debtor defaulted on the note, the former employer's right of set-off came into effect and was a defense to debtor's turnover motion
Sovereign immunity protected the State of Nebraska from the plaintiff's complaint of conversion, so the bankruptcy court lacked subject matter jurisdiction over that portion of the complaint. The State had not waived the immunity under § 505 or § 106