After a trial, the bankruptcy court found the debt at issue to be dischargeable.
Debtor had borrowed money from the bank and granted a security interest in a vehicle to secure the promissory note. The bank did not obtain the vehicle’s certificate of title or note its lien on the title. The debtor later sold the car without notifying the bank and used the proceeds to pay other business debt. He continued to make payments to the bank for two more years, until succumbing to financial pressures and filing for Chapter 7 relief.
The bank filed this adversary proceeding to except the debt from discharge under § 523(a)(2)(A) for false pretenses, false representation, or actual fraud. The court ruled there was no evidence that the debtor intended to defraud or make a false representation to the bank at the time he obtained the loan. At most, the court said, the debtor may have breached the contractual security agreement, but breaches of contract are not excepted from discharge absent evidence of fraud.
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Opinions
United States Courts Opinions (USCOURTS) collection is a collaborative effort between the U.S. Government Publishing Office (GPO) and the Administrative Office of the United States Courts (AOUSC) to provide public access to opinions from selected United States appellate, district, and bankruptcy courts.
The District of Nebraska offers a database of opinions for the years 1997 to current, listed by year and judge. For a more detailed search, enter the keyword or case number in the search box above.
Regardless of whether Nebraska law would recognize the children of debtor's life partner as the debtor's for homestead purposes, debtor can claim a homestead exemption as head of family because her adult child lives with & depends on her for support.
Because the debtor's family relied on charity, there was no evidence their financial situation would change significantly in the future, and the debtor was unable to make payments under the ICRP, repayment of her student loans would be a hardship.
A state's post-confirmation revocation of the debtor's business license for failure to pay a corporate tax - which was an administrative expense that was discharged - violated the discharge injunction & the non-discrimination sections of the Code.
The evidence at trial indicated that the debtor transferred assets both pre- and post-petition, and failed to disclose assets and transfers of assets, with the intent to hinder, delay, or defraud creditors. Discharge was denied under § 727(a)(2).
Debtor intentionally misrepresented his business connections and his ability to build a new shed for the creditors. They relied on those misrepresentations to their detriment. The debt owed to them was excepted from discharge under § 523(a)(2)(A).
Debtor intentionally misrepresented his business connections and his ability to build a new shed for the creditors. They relied on those misrepresentations to their detriment. The debt owed to them was excepted from discharge under § 523(a)(2)(A).
The court granted the defendants' motion to dismiss the adversary complaint. The debtor failed to state claims against any of the defendants. Instead, it appeared debtor was attempting to collaterally attack an order granting relief from the stay.
The parties should be able to reach a consensus on the amount of fees due under a contingent fee agreement with the law firm that represented the debtor in litigation with the City of Omaha. If not, they may request mediation or litigate in state court.
A proposed compromise of a controversy under Rule 9019 is evaluated in terms of whether it is fair, equitable, & in the best interest of the estate. The standing of a debtor's shareholders to object to a settlement is limited to their status as creditors.