The court granted summary judgment to the plaintiff, finding a judgment debt excepted from discharge under § 523(a)(6) because the debtor willfully injured the plaintiff and acted with malice when he purposefully hit the plaintiff multiple times.
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Judge Brian S. Kruse
The court denied the pro se debtor a discharge under §§ 727(a)(2), (a)(3), (a)(4) and (a)(5), finding after a trial that the debtor misrepresented her true financial position in her schedules and statement of financial affairs. She amended these only after the U.S. Trustee investigated, found discrepancies, and filed a motion to dismiss for bad faith.
The court denied a creditor’s motion for relief from stay to compel debtor’s specific performance of a pre-petition contract to sell her home. The court found the contract to be executory, as neither party had performed as of the petition date, and it was deemed rejected under § 365(d)(1). The creditor’s right to specific performance is a claim in the bankruptcy case, which can be reduced to money damages.
The debtor moved to avoid a judgment lien on her home because it impaired her homestead exemption. The creditor agreed the lien was partially avoidable; the only dispute concerned the home’s value and therefore to what extent the homestead exemption was impaired.
After a trial, the court declined to except the debt at issue from discharge under § 523(a)(2)(A). The plaintiff consigned a boat and trailer for sale with the debtor’s business and turned over a signed title for the boat. The items sold four months later. When the plaintiff received a check from the debtor for less than he had anticipated, even accounting for the debtor’s sales commission, he learned that the debtor had reduced the sales price without authorization.
After an evidentiary hearing, the court denied a creditor’s complaint objecting to discharge and dischargeability. The debtors are the only two members in an LLC that once owned and operated golf equipment retailer with five locations in Nebraska and Iowa. The plaintiff and his business loaned money to the LLC because the plaintiff was close friends with the debtors’ family. Regular payments were made on the loan until the LLC’s cash-flow issues intensified.
The court dismissed the debtor’s fourth Chapter 13 case for cause and barred him from refiling for 180 days. In each of the cases, the debtor failed to timely file schedules, the statement of financial affairs, and a plan. His intent in filing bankruptcy is to delay or prevent his former wife from collecting a property equalization judgment awarded to her as part of the marital dissolution. This delay is prejudicial to creditors and is cause for dismissal under § 1307(c).
The court granted the trustee’s motion for turnover of a motor vehicle titled in the debtors’ names but allegedly owned by the debtor’s sister. While the debtors argued that the court should discern a resulting trust in favor of the sister because she paid for the vehicle, the court found that Nebraska statutory law is clear and unambiguous in not recognizing a resulting trust in a motor vehicle.
The bankruptcy court granted the defendant-debtor’s motion to dismiss the amended complaint as untimely, with no leave to further amend because the original complaint did not plausibly set forth a § 523(a)(6) claim or contain a § 727(a)(5) claim, so any additional amendment would not relate back.
The court awarded sanctions in the form of attorneys’ fees to the debtor’s wife after determining that the debtor filed his Chapter 7 petition for an improper purpose. The evidence at trial showed that the debtor was not insolvent, was not under the weight of oppressive indebtedness, and did not required a fresh start. The debtor also knowingly and fraudulently represented his assets in his bankruptcy schedules, and the court found that “he did not intend to surrender his property for distribution as required in a Chapter 7 case.”