Reported at 18 B.R. 605. Faced with competing motions by creditor to convert case to Ch. 7 under sec. 1307(c) and by debtor to dismiss case under sec. 1307(b), the court ruled that the Bankruptcy Code favors dismissals over involuntary liquidations

The debtor-plaintiffs did not meet their burden of proof in showing whether a small debt which the debtors repaid post-petition was incurred pre-petition or post-petition. If it was a post-petition extension of credit, repayment would not be improper

The court granted the Chapter 7 trustee's request to sell real property free and clear of the claims of co-owners because it otherwise would be difficult to sell and because the benefit to the estate of the sale outweighed the detriment to the co-owners

District court affirmed bankruptcy court's judgment that the lender was oversecured on an automobile loan and therefore was entitled under § 506 to payment of its attorney's fees in addition to the pay-off of its claim from an insurance proceeds check

District court opinion remanding case for further fact findings, because the facts stated in the bankruptcy court's 12/13/78 decision -- that debtor knew when he wrote a check to plaintiff that it couldn't be paid -- did not support non-dischargeability

Plaintiff knowingly accepted an insufficient funds check from the debtor, which he ultimately was unable to make good. The court said that an insufficient funds check, by itself, was not a materially false statement in writing, so the debt was discharged

The district court reversed the bankruptcy court's dismissal of the case pursuant to § 1112(b)(1), remanding the matter to permit the bankruptcy court to take evidence on the issues of asset valuation and the reasonable likelihood of rehabilitation

Reported at 19 B.R. 844. Nebraska debtors are entitled only to the exemptions available under Nebraska law. Therefore, only the husband as head-of-household can claim a homestead exemption, and the wife may claim an "in lieu of homestead" exemption

Fees of $50 per hour were appropriate for debtor's counsel in a case that converted from Chapter XI to straight bankruptcy. Debtors' counsel who are unsuccessful in formulating an arrangement aren't compensated as much as if an arrangement is confirmed

Order affirmed bankruptcy court decision that debtor & his non-debtor wife jointly owned their farm assets, although bank handled loans solely with husband. Question remained as to whether wife ratified husband's pledge of her share of the property