In Chapter 7, funds administered by the trustee are intended for payment of pre-petition debt, not for post-petition child support, and should be distributed according to the priority structure of § 726, usually pro-rata among each priority level.
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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.
Court denies motion for contempt of order against debtor, finding that the debtor is attempting to comply by making payments and obtaining funds not currently in the debtor's possession.
A creditor and its counsel were sanctioned for continuing to garnish debtor's wages. Counsel was unaware of a procedural change requiring a release of garnishment to be filed. However, he was notified twice before finally stopping the garnishment.
An agricultural input supplier's statutory lien was valid but was not timely perfected, so it did not have priority over subsequent lienholders. Thus, the debtors could enroll in Farm Service Agency programs and grant the FSA a first lien on crops.
Debtor, a homebuilder, executed deeds of trust to its lender on real estate actually owned not by the debtor but by related entities. The court denied lender's attempt at reformation of the deeds of trust to preserve the lender's superior lien interests
Debtor, a homebuilder, executed deeds of trust to its lender on real estate actually owned not by the debtor but by related entities. The court denied lender's attempt to reform the deeds of trust to preserve the lender's superior lien interests.
The trustee's complaint to avoid alleged fraudulent transfers was untimely filed under § 544. The longer state law statute of limitations did not save the lawsuit because the trustee necessarily was acting under the authority of the Bankruptcy Code.
The court denied the debtor’s application for unclaimed funds deposited by the Chapter 7 trustee with the court and representing uncashed dividend checks. The court ruled that the funds nevertheless belonged to the creditors and should not be distributed to the debtor or its successor.
In a dispute over competing rights to the debtor’s accounts receivable, the court granted partial summary judgment to the lender holding perfected pre-petition security interests in inventory, accounts, equipment, and other collateral. The other claimants to the accounts receivable were the multi-employer pension and welfare benefit plans representing the debtor’s employees. The plans argued that because the debtor failed to pay plan contributions withheld from employees’ wages, the unpaid contributions were property of the pension and welfare benefit plans under ERISA and were held in trust by the debtor, giving the plans a superior claim to the money. The court found that the evidence showed the funds at issue were the employer’s share of the plan contributions, rather than contributions that were withheld from the employees’ paychecks, and thus were not held in constructive trust. The funds were properly treated as part of the lender’s collateral.
Reported at 366 B.R. 919. The automatic stay didn't go into effect because debtor had two cases pending within the previous year. Moreover, she did not rebut the presumption that she did not file her latest case in good faith, as her plan wasn't feasible.