In re Mann

(Bankr. W.D. Ky. Aug. 10, 2017)

The bankruptcy court denies the U.S. Trustee’s motion to enter an order for sanctions and requiring disgorgement of fees. The attorney had provided advice to the debtor about the petition and schedules that the debtor had drafted. The attorney was not aware that a bankruptcy was filed until he received the U.S. Trustee’s motion. The court declines to grant the relief requested under these circumstances. Opinion below.

Judge: Lloyd

2017-08-10 – in re mann

Author: Matt Lindblom

Coslow v. Reisz (In re Coslow)

(Bankr. W.D. Ky. July 28, 2017)

The bankruptcy court enters summary judgment in favor of the debtor and orders the trustee to abandon any interest in the debtor’s residence. As of the petition date there was no equity in the property due to the balance on two mortgages. After the petition date, due to postpetition payments on the second mortgage, significant equity in the property was created. The trustee argued the equity was property of the estate. The court, however, holds that the debtor is entitled to such postpetition equity. As of the petition date, the property was of inconsequential value to the estate and thus should be abandoned. Opinion below.

Judge: Stout

Attorneys for Debtor: Seiler Waterman LLC, David M. Cantor, William P. Harbison, Keith J. Larson

Attorneys for Trustee: Tilford, Dobbins & Schmidt, PLLC, William Stephen Reisz

2017-07-28 – in re coslow

Author: Matt Lindblom

Community Financial Services Bank v. Edwards (In re Edwards)

(Bankr. W.D. Ky. July 17, 2017)

The bankruptcy court enters judgment in favor of the lender, holding the debt owed by one of the debtors would not be discharged, pursuant to 11 U.S.C. § 523(a)(6). The debtor disregarded the lender’s security interest in his business’s inventory, using the proceeds of the inventory for personal expenses in violation of the security agreement. The court holds that the lender failed to present sufficient evidence to except the other debtor’s (the first debtor’s spouse) debt from discharge. Opinion below.

Judge: Stout

Attorney for Plaintiff: Martin W. Johnson

Attorney for Debtors: Steve Vidmer

2017-07-17 – in re edwards

Author: Matt Lindblom

In re Morris

(Bankr. W.D. Ky. July 12, 2017)

The bankruptcy court sustains the creditors’ objection to the debtors’ claimed homestead exemption. The property was not owned solely by the debtors, so the exemption would apply only to their partial interest in the property. The property was sold but there was no evidence as to the amount allocated to the debtors’ interest in the property. Opinion below.

Judge: Lloyd

Attorney for Debtors: Mark H. Flener

Attorney for Creditors: Kerrick Bachert PSC, Scott A. Bachert

2017-07-12 – in re morris and bellair

Author: Matt Lindblom

Stroud v. Parker (In re Parker)

(Bankr. W.D. Ky. May 12, 2017)

The bankruptcy court enters summary judgment against the debtor holding the debt nondischargeable pursuant to 11 U.S.C. § 523(a)(4). The plaintiffs inherited a judgment against the debtor that was based on the debtor’s theft of the decedent’s property. The plaintiffs were the proper parties to bring the claim, as the decedent’s estate assigned the judgment to them, and the requirements of § 523(a)(4) were satisfied. Opinion below.

Judge: Lloyd

Attorneys for Plaintiffs: Crain – Schuette Attorneys, Amanda Lisenby Blakeman

Attorney for Debtor: Alicia C. Johnson

2017-05-12 – in re parker

Author: Matt Lindblom

Bennett v. Cory (In re Mammoth Resource Partners, Inc.)

(Bankr. W.D. Ky. Apr. 11, 2017)

The bankruptcy court denies the debtor’s motion to condition the plaintiffs’ voluntary dismissal on payment of the debtor’s attorney fees. The plaintiffs sought to voluntarily dismiss the action without prejudice, but the debtor argued the legal fees paid to date would be wasted if the action was refiled at a later date. The court finds that the available evidence does not establish that the fees were necessary or that the legal work would be wasted and thus the debtor did not show that he would suffer “plain legal prejudice.” The dismissal without prejudice is appropriate and the debtor is not entitled to an award of attorney fees. Opinion below.

Judge: Lloyd

Attorneys for Plaintiffs: Waller Landsden Dortch & Davis, LLP, Ryan K. Cochran, Joseph A. Woodruff

Attorney for Defendant: Kenneth A. Meredith, II

2017-04-11 – in re mammoth resource partners

Author: Matt Lindblom

Spearman v. Commonwealth Credit Union

(Bankr. W.D. Ky. Mar. 9, 2017)

The bankruptcy court grants summary judgment in favor of the creditor in this adversary proceeding in which the debtor alleged violations of the automatic stay and claims under the Kentucky Consumer Protection Act. The court holds that the creditor bank’s restriction of the debtor’s electronic privileges with respect to her accounts did not violate the automatic stay. Opinion below.

Judge: Stout

Attorney for Debtor: Ross Benjamin Neuhauser

Attorney for Creditor: Christopher M. Hill

2017-03-09 – in re spearman

Author: Matt Lindblom