A finding regarding the ownership of jointly held stock by the non-debtor spouse in a dischargeability action did not collaterally estop the trustee from pursuing an avoidance action against her alleging fraudulent or preferential transfers.
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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.
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The debtors' mortgage lenders had been overpaid due to their inaccurate records, so a determination was needed as to how the overpayments should be applied as among the lenders, the debtors, and the trustee. The court strongly suggested settlement.
The court granted debtors' motion to avoid lien because the total of liens and exemption exceeds debtors' interest absent liens, and is avoided by amount of difference. The amount of difference exceeds the lien amount, so the lien is avoided in full.
The debtor's activities did not rise to the level of gross mismanagement or fraud and did not warrant the appointment of a trustee. However, an examiner could be appointed to investigate the debtor, but only if the movants were willing to pay the fees.
The court deferred the creditor's motion for relief from stay to allow the debtors to become fully current on post-petition payments and to pay the creditor's costs, within a month. If the debtors were unable to do so, relief would be granted.
The court upheld a witness's motion to quash a subpoena duces tecum. The witness was correct that Rule 2004 required him to be served with a subpoena, instead of a court order, with time to object, before he needed to produce the requested documents.
The debtors' airplane was collateral for a bank loan. The bank had possession of the plane. Debtors did not insure it or make payments on it. Because the debtors were unable to provide adequate protection, the bank was entitled to relief from the stay.
Post-divorce debt incurred by the debtor on a jointly owned credit card account was non-dischargeable because it was subject to the hold-harmless clause of the parties' decree and as such was a domestic support obligation under § 523(a)(15).
Debtor's failure to comply with an adequate protection agreement and an inability to cure the default in a short time were cause for relief from the stay. To protect the debtor's business, however, the creditor was not allowed to engage in self-help.
On a creditor's motion to dismiss the case because it had not authorized the filing, the court found a state court order in aid of execution did not give the creditor an ownership interest in the debtor, so the creditor's authorization was unnecessary.