Under 11 U.S.C. section 505, the bankruptcy court may determine a debtor's tax liability unless the liability has been finally determined through a pre-petition contest process and adjudication by a judicial or administrative tribunal

The Chapter 7 trustee was not estopped from objecting to the debtor's amended claim of exemption, based on new case law in the jurisdiction, despite having mistakenly encouraged the debtor at the § 341 meeting to file an amended exemption claim.

After a trial, the court found part of the debt owed to be excepted from discharge under 11 U.S.C. § 523(a)(4) and (a)(6) because of findings of conversion, embezzlement, and defalcation by a fiduciary. There was insufficient evidence to deny discharge under § 727(a)(2).

The debtor treated the parties' escrowed funds as its own, using them as general operating assets. When the funds were paid to the claimant two days before the petition date, the funds had lost their escrow identity, so the transfer was preferential.

The court defers to Interstate Commerce Commission decision concerning "undercharges" for freight transportation by the debtor, a motor contract carrier. In addition, defendant is exempt from undercharge claims as a "small business concern" under the Negotiated Rates Act of 1993.

Preference action. Debtor did the billing and took in receivables for defendant's business, commingled the funds with its own, then paid the defendant. All of the elements of 11 U.S.C. section 547(b) were established, and the payments were avoidable.

Reported at 334 B.R. 257. Loan from acquaintance wasn't from an insider. It wasn't preferential or fraudulent as to the corporate debtor. It was fraudulent as to the individual debtor but not avoidable because transferee took for value & in good faith.

Preference action to recover insurance premium payment. The payment was preferential because the insurance co. received more than it would have in a Chap. 7 liquidation, but the payment was made in the ordinary course of business, so it was not avoidable.

In an extensive discussion of the Negotiated Rates Act of 1993, the court found that the defendant was not liable for the balance of the shipping rates it had been undercharged by debtor. The defendant was exempt as a small business under the Act's terms.

For bank's wrongful set-off, the creditor could recover the lowest intermediate balance of commingled funds, but the court found no breach of fiduciary duty by the bank & no basis for imposing a constructive trust in funds held by bankruptcy trustee.