After a trial, the court denied the Chapter 12 debtors’ open-ended motion to use cash collateral because the debtors could not prove they had a sufficient equity cushion in land, equipment, and livestock available to the secured creditors.
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Judge Brian S. Kruse
The court granted summary judgment to the Chapter 7 trustee and avoided a preferential transfer. The debtor and a non-debtor jointly purchased a vehicle on an installment contract prior to filing bankruptcy and are both listed as owners on the title. The non-debtor is in possession of the vehicle and makes the payments on it. The seller noted its lien on the certificate of title within 90 days prior to the petition date, which led the trustee to file this adversary proceeding to avoid the lien under § 547(b).
The bankruptcy court granted the debtor’s objection to the claim of a creditor holding a promissory note signed by a member of the debtor in his personal capacity. The creditor had also obtained summary judgment against the individual in a state court lawsuit, where the automatic stay prevented the state court from considering the allegations against and defenses of the debtor.
The plaintiff was injured by the debtor in a bar fight. The debtor pled no contest to criminal charges and was ordered to pay restitution. The plaintiff also obtained an award of damages in a state-court civil lawsuit against the debtor. After a trial, the bankruptcy court excepted the debt from discharge under § 523(a)(6), finding that the debtor acted willfully – by invading a legally protected interest of the plaintiff – and maliciously, because in striking the plaintiff, harm was substantially certain to occur.
After a trial on a creditor’s motion for relief from the automatic stay and the debtor’s objection to that creditor’s proofs of claim, along with a request for valuation and cramdown, the court granted the motion for stay relief because the debtor did not own nor did he have a leasehold or possessory interest in the secured real estate, and no justification was shown for extending the automatic stay to third parties.