For purposes of determining the eligibility requirements in a Chapter 13 pursuant to 11 U.S.C. 109(e), the Debtor's schedules will be sufficient unless there is a showing of bad faith.
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Opinions
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James G. Mixon
The creditor was prevented from enforcing their medical lien when the bankruptcy case was filed. 11 U.S.C. 108(c) tolls the time period for the enforcement action, thereby preserving the medical lien while in bankruptcy.
The Court found that the creditor was entitled to administrative expenses for the use of two tractors during the first 59 days pursuant to 11 U.S.C. § 503(b)(1)(A), and for all three tractors from the 60th day after the filing of the petition until the date of the rejection pursuant to 11 U.S.C. § 503 and 11 U.S.C. § 365(d)(5).
Audrey R. Evans
Court overruled objection to unredacted proof of claim because 11 U.S.C. § 502(b) does not provide for such disallowance and 11 U.S.C. § 105(a) does not provide a private cause of action. Court dismissed the Debtor's contempt claim because the Debtor alleged no specific facts showing that the violation was willful or that the Debtor suffered any monetary damages other than her attorney's fees. Court also dismissed Debtor's state law invasion of privacy claim because she failed to allege sufficient facts showing that the unredacted information actually reached or was sure to reach the public at large. Dunbar v. Cox Health Alliance, LLC (In re Dunbar), 446 B.R. 306 (Bankr. E.D. Ark. 2011).
Court held that it was not barred by collateral estoppel from making a determination on “willful and malicious” requirements of § 523(a)(6) because Debtor’s guilty plea to crime of battery may have been satisfied, in this case, by recklessness prong of criminal statute, and because civil judgment for intentional tort of battery was based on Debtor’s stipulation to liability. Following a full review of the evidence, the Court found that the Debtor’s actions were willful, but that the evidence was insufficient to support a finding that the Debtor’s actions were malicious. As a result, Court held that the judgment debt was not excepted from discharge under § 523(a)(6). Hidy v. Bullard (In re Bullard), 451 B.R. 473 (Bankr. E.D. Ark. 2011). Affirmed on appeal to 8th Circuit BAP. See Hidy v. Bullard (In re Bullard), 449 B.R. 379 (B.A.P. 8th Cir. 2011).
Court found that the Debtors' transfer of a remainder interest in real property to their mother was not actual fraud under 11 U.S.C. § 548(a)(1)(A), but was constructively fraudulent pursuant to 11 U.S.C § 548(a)(1)(B) because no consideration was provided in exchange for the transferred interest and the Debtors were insolvent at the time of the transfer. Luker v. Eubanks (In re Eubanks), 444 B.R.415 (Bankr. E.D. Ark. 2010).
Court found that debtor and creditor entered into a binding settlement agreement under Arkansas law to settle a dischargeability lawsuit under 11 U.S.C. § 523, and that the settlement was enforceable despite lack of prior court approval under Federal Rule of Bankruptcy Procedure 9019(a). Hyundai Motor Finance Co. v. McKay (In re McKay), 443 B.R.511 (Bankr. E.D. Ark. 2010).
Judge Ben T. Barry
The Court overruled the creditor’s objection to the debtors’ claimed Arkansas state homestead exemption under § 522. The debtors’ use of a portion of their homestead property for business purposes did not change the homestead character of the property because the debtors had not manifested an intent to abandon that portion of the property from their homestead.
The court found that the creditor had standing to bring suit against other members of an LLC because he had suffered a direct injury under § 523(a)(2). However, the creditor did not have standing under § 523(a)(4); although the debtor/managing member may have had a fiduciary relationship with the LLC, he did not have a fiduciary relationship with the other members in their individual capacity. Misrepresentations relating to the payment or accrual of management fees resulted in a nondischargeable debt under § 523(a)(2).
Judge Richard D. Taylor
Court analyzes the standards for awarding administrative expenses and interpreting the terms of an agreed order.