A debtor could not avoid the interest of a purchaser of property at a trust deed sale simply because the trustee's deed had not been recorded as of the petition date. The trustee's acceptance of the buyer's bid terminated debtor's rights to the property.
In the parties' divorce decree, the debtor was ordered to pay the second mortgage on the real estate she was awarded and to hold her former husband harmless on that debt. That obligation continued even though the mortgage turned out to be unperfected.
Creditor's counsel refused to return garnishment checks received after notice of debtor's bankruptcy to debtor directly, instead forwarding garnished funds to the Chapter 13 trustee. Court finds creditor's policy violates the automatic stay.
The court denied discharge under § 727(a)(5) because debtor – a sophisticated businessman – couldn't adequately explain the disappearance of more than $100,000 in assets, and under § 727(a)(3) because he failed to keep or produce financial records.
Reported at 61 B.R. 671. The lender holds a continuing security interest, under § 552, in post-petition cuttings of alfalfa planted pre-petition, because the subsequent cuttings are "the natural increase and products" of the original secured crop
Priority claims do not lose their priority status even if the claims are untimely filed
Debtor intentionally misrepresented his business connections and his ability to build a new shed for the creditors. They relied on those misrepresentations to their detriment. The debt owed to them was excepted from discharge under § 523(a)(2)(A).
Debtors' attempt to use the trustee's power to set aside a state court judgment against their partnership will not be condoned by the court because the debtors appear to be attempting to manipulate the powers of the bankruptcy system
The court denied the U.S. Trustee's motion to dismiss for abuse because the non-debtor spouse's assets and the couple's vehicles shouldn't be considered, and the debtor's 401(k) contribution was insignificant when compared to unsecured debt.
The court overruled the objection of a judicial lienholder to a post-petition financing agreement because the agreement did not affect the judicial lienholder's interest, which was adequately protected by a supersedeas bond posted by the debtor.
