The court granted summary judgment to the debtors, ordering that a wholly unsecured junior lien on the debtors' residential real estate may be avoided after the debtors complete Chapter 13 plan payments.

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 permits wholly unsecured liens to be stripped off.

The debtor purchased cattle from the defendant pre-petition, and his payment checks were dishonored. The seller filed a replevin action and obtained possession of the cattle pursuant to an order from the state court. Shortly after that replevin order was entered, the debtor filed a Chapter 11 petition. The debtor in possession then filed this adversary proceeding to exercise his avoidance powers and set aside the seller's successful reclamation of the cattle.

The court entered a default judgment excepting a debt from discharge in an adversary proceeding where the debtor was served with process but did not respond. The complaint requested relief under both § 523 and § 727, but the motion for default judgment did not include a prayer for denial of discharge under § 727, so that portion of the motion was denied.

After trial, the court granted the debtor's request to discharge her student loans. She has a stable job, although not in her field of study, but has been unable to find a better-paying job in the Lincoln area and is unlikely to earn significantly more in the future. Her monthly expenses are modest and reasonable. The stress of financial problems, including repayment of these student loans, has had an impact on the debtor's emotional health and caused difficulties in her personal relationships.

The court ruled that the debtor remains personally liable for all ancillary amounts still owing in connection with a judgment, if the judgment is found to be non-dischargeable. Therefore, the debtor would owe the judgment rate of interest on the debt until it is paid in full. Here, summary judgment was denied so a trial could be held to determine dischargeability.

The court denied the debtor's motion for summary judgment against a junior lienholder on the debtor's home because the debtor did not properly serve the creditor.

The state Department of Health and Human Services objected to the Chapter 11 trustee's proposed sale of a health care facility free and clear because when such a facility is sold, state law allows the department to recapture depreciation payments made to the facility as part of its Medicaid reimbursements.

The court granted summary judgment to the debtors, ordering that a wholly unsecured junior lien on the debtors' residential real estate may be avoided after the debtors complete Chapter 13 plan payments.

The court granted a creditor's unopposed motion for summary judgment and determined it was entitled to the principal balance of its unsecured claim plus interest and legal fees arising from the debtor's default under the confirmed plan. The plan and confirmation order provided for interest and post-petition fees, and a confirmed plan serves as a contractual agreement which binds the parties.