A debtor in a Chapter 7 bankruptcy case was unable to recover garnished wages as an avoidable preference even though the wages were turned over to the judgment creditor within the 90-day preference period because the wages were garnished and ...

Tagged with: Bankruptcy Judge Paul M. Black U.S. Bankruptcy Court

Although the debtor admittedly made false statements and breached a deed of trust, he did not act with the requisite fraudulent intent and therefore the civil judgment is discharged. Background James Young filed a voluntary Chapter 7 petition in this ...

Tagged with: Bankruptcy Judge Paul M. Black U.S. Bankruptcy Court

A debtor who settled her personal injury claim may keep the funds because they were acquired after the petition date but prior to the conversion date, meaning the money was not property of the debtors’ bankruptcy estate. Background The debtors ...

Tagged with: Bankruptcy Judge Kevin R. Huennekens U.S. Bankruptcy Court

The trustee could not sell the real property, which a debtor owned with his spouse as tenants by the entireties, and use the proceeds to benefit unsecured creditors. Background The debtor claimed an exemption in real property owned as tenants ...

Tagged with: Bankruptcy Judge Paul M. Black U.S. Bankruptcy Court

Where a creditor was not entitled to a distribution of excess cash entering the bankruptcy estate in the future pursuant to the express terms of the approved reorganization plan, the creditor lacked standing to obtain relief from judgment in order ...

Tagged with: Bankruptcy Judge Kevin R. Huennekens U.S. Bankruptcy Court

Where a debtor executed a promissory note on behalf of a company controlled by her daughter and son-in-law and the bank required that the debtor’s then husband execute a deed of trust to create a lien on the couple’s principal ...

Tagged with: Bankruptcy Judge Paul M. Black U.S. Bankruptcy Court

Where a husband and wife initiated a Chapter 7 bankruptcy action to halt the sale of their home in a foreclosure commenced when the wife failed to make payments ordered in her prior Chapter 13 bankruptcy case, the wife could ...

Tagged with: Bankruptcy Judge Kevin R. Huennekens U.S. Bankruptcy Court

A Maryland casino’s objection to a Virginia debtor’s repayment plan because of a “marker” he owed the casino was sustained, despite a Virginia code prohibition making gaming contracts void, because Virginia’s public policy against enforcing gambling debts is no longer ...

Tagged with: Bankruptcy Judge Brian F. Kenney U.S. Bankruptcy Court

A creditor who acted in good faith and was given no notice of the debtor’s bankruptcy or an automatic stay when it obtained a judgment for possession was entitled to an order “annulling” the automatic stay, and thus its judgment ...

Tagged with: Bankruptcy Judge Rebecca B. Connelly U.S. Bankruptcy Court

Because a trustee pleaded facts showing the existence of transfers made at a time when the transferor was insolvent or rendered insolvent, the trustee may proceed in his suit to avoid and recover the allegedly fraudulent transfers. Background Stephen Scott ...

Tagged with: Bankruptcy Judge Rebecca B. Connelly U.S. Bankruptcy Court