Per local rule, a sec. 727 obj. to discharge couldn't be withdrawn w/o an affidavit that debtor hadn't offered payment to make the obj. go away. Mr. Novotny, who had no attorney & didn't sign the affidavit, was given addn'l time to consider the settlement

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.

An insider's acceptance of a Chapter 11 plan is excluded when determining whether the class has accepted plan, but the insider's claim remains in the class for purposes of determining whether the requisite proportion of the class's claims have accepted

On appeal, the district court affirmed the denial of relief from the stay for cause. Debtors' failure to file an amended Chapter 13 plan was not a willful failure to abide by a court order, so § 109(f)(1) did not preclude their subsequent Chapter 11 filin

The district court reversed the bankruptcy court's denial of a compromise in a preference action between the trustee and a secured lender. The bankruptcy court should have taken evidence on whether the compromise was in the best interest of the estate

Court ruled that the security interest taken by a purchase-money lender in all of the debtor's household goods was overly broad & violated the Iowa Code, and was accordingly void. Debtor, therefore, could not be liable for converting lender's collateral

Under the Bankruptcy Act, the creditors' committee had no standing to bring lawsuits to recover fraudulent transfers and preferences. If the debtor-in-possession refused to do so, the committee's only remedy was to ask for appointment of a receiver

Executory lease contract is deemed rejected when trustee does not assume it within 60 days; as a result, lease provisions prohibiting liquidation sales of inventory are not binding on trustee. However, trustee must pay reasonable value for his occupancy

On appeal, the district court affirmed the bankruptcy court ruling that the debtor couldn't have a Chapter 11 case and a Chapter 13 case pending at the same time. Moreover, the debtor wasn't eligible for Chapter 13 and couldn't convert the Chapter 11 to 1

Creditors disputed the relative priority of their Article 9 security interests. The court found that the holder of a purchase-money security interest did not timely perfect its interest, so the lender's security interest took priority over the PMSI