The court denied a motion for sanctions filed by a creditor involved in a long-standing dispute with the debtor. The debtor’s post-petition publication of potentially defamatory material about the creditor was inappropriate, but likely within his free speech rights. The creditor could pursue state-court remedies if warranted.
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The court denied confirmation of the debtors’ Chapter 12 plan because it was not feasible and it proposed to amortize short-term notes secured by personal property over 25 years. That lengthier term deprived the lender of the benefit of its bargain.
An unsecured junior lien on the debtor’s residential real estate may be avoided after the debtor completes Chapter 13 plan payments. The case law in the Eighth Circuit, interpreting Nobelman, permits wholly unsecured liens to be stripped off.
The proceeds of an insurance policy covering the debtor’s directors and officers could be used to pay the settlement in a district court lawsuit. The debtor’s interest in the proceeds was subordinate, so the disbursement of the proceeds would not affect the bankruptcy estate.
The findings underlying judgments entered against the debtor by a Florida court awarding damages to the plaintiffs for conversion and civil theft were sufficient to except those debts from discharge under the larceny prong of § 523(a)(4).
The debtor objected to several proofs of claim by the same creditor. The court denied some of the claims because the claimant failed to meet his burden of proof in establishing the validity of the claims. Factual issues existed on the other claims, so they were set for trial.
The super-priority administrative expense claim granted to the IRS in exchange for the debtor’s use of cash collateral in its Chapter 11 case did not survive the case’s conversion to Chapter 7. The IRS’s lien was subordinated by the terms of § 724(b).
The court reduced the fees awarded to counsel for the committee of unsecured creditors in a Chapter 11 case in which a trustee had been appointed. The court found the committee had unnecessarily involved itself in matters better left to the trustee.
The court denied the corporate defendants’ motion to quash and motion for protective order, ruling (1) the out-of-state defendants should be deposed in Nebraska and (2) the topics to be covered in the deposition were relevant for purposes of discovery.
The court granted a protective order for the deposition of an out-of-state defendant in an action to recover an account receivable. The defendant’s counterclaim did not alter the general rule that defendants should be deposed in their home states.