After a trial in two related adversary proceedings on complaints seeking denial of discharge under § 727 or the exception of a debt from discharge under § 523(a)(2)(B), the court ruled in favor of the debtors.
The court granted partial summary judgment to the Chapter 11 trustee on the issue of reasonably equivalent value in this action to avoid certain allegedly fraudulent transfers by the debtor to third parties. The evidence did not support the defendants' "identity of interests" and "indirect benefits" defenses.
The court granted summary judgment to the debtor in a non-dischargeability action under § 523(a)(4) brought by a defendant in a state-court lawsuit filed by a creditor of the debtor. The debtor had purchased cattle from the state-court plaintiff, a livestock auction company, for resale to the state-court defendant, a cattle feeding operation. The cattle feeder paid the debtor for the cattle, but the debtor's check to the auction company was dishonored and remains unpaid.
After a trial, the court denied a discharge to a debtor who omitted assets and pre-petition asset sales and payments from his bankruptcy schedules and statement of financial affairs. The court found these omissions and misstatements to constitute false oaths and to be material.
The holder of a super-priority unsecured administrative expense claim sought disgorgement of all administrative expenses paid during the Chapter 11 and subsequent Chapter 7 phases of this bankruptcy case in order that the funds could be applied to its claim. The court denied the motion due to the unique facts and circumstances of this case.
The debtor in a confirmed Chapter 11 case filed a lawsuit in state court concerning his former and current mortgage loan servicers' handling of his mortgage, particularly with regard to the post-confirmation interest rates and the amounts collected for property taxes. A defendant removed the case to federal district court, which then referred it to the bankruptcy court as a core proceeding because a cause of action dealt with the application of the terms of the confirmed plan and confirmation order.
The court granted summary judgment to the plaintiffs in their action to except a debt from discharge under § 523(a)(2)(A). The plaintiffs purchased a house from the debtor and later discovered the basement suffered water damage, which the debtor had failed to disclose. The matter was arbitrated, with an award being entered in the plaintiffs' favor based on the debtor's knowing failure to disclose. The debtor then filed for bankruptcy protection before the arbitration award could be confirmed.
In a rare outcome, the court denied the debtor a discharge. The record showed that the debtor transferred property (residence, stock shares, boat, and two vehicles) to his wife shortly before judgments were entered against him in a state court lawsuit and within a few months before he filed a Chapter 7 petition. The debtor made these transfers to protect the assets from his creditors and prevent or discourage them in their collection efforts.
The debtor and the Nebraska Department of Health & Human Services had entered into a pre-petition agreement settling a lawsuit under the False Medicaid Claims Act, and the debtor had paid a portion of the settlement amount. In the debtor's bankruptcy, the Department filed a complaint to determine the dischargeability of the balance of the settlement amount under 11 U.S.C. § 523(a)(2)(A).
After a trial in two related adversary proceedings on complaints seeking denial of discharge under § 727 or the exception of a debt from discharge under § 523(a)(2)(B), the court ruled in favor of the debtors.
