In re Morris

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

The bankruptcy court holds that the creditor’s lien is a judicial lien subject to avoidance under § 522(f) rather than a statutory lien. The creditor properly recorded a mechanic’s lien against the debtor’s property, and then filed suit prior to the one-year period expiring after the filing. However, the complaint filed sought a judgment for breach of contract rather than enforcement of the mechanic’s lien. The creditor then recorded a judgment lien following entry of a default judgment. The bankruptcy court concludes that the statutory process for perfecting the mechanic’s lien was not followed—the mechanic’s lien dissolved after the one-year period and the creditor held only a judicial lien at the time the bankruptcy petition was filed. Opinion below.

Judge: Lloyd

Attorney for Debtor: Allan E. Dunaway

Attorney for Creditor: Stiller Waterman LLC, David M. Cantor

2017-09-28 – in re morris

Author: Matt Lindblom

Haire v. Padgett (In re Padgett)

(Bankr. W.D. Ky. Sep. 1, 2017)

The bankruptcy court finds in favor of the debtor in this nondischargeability action. The creditor’s claim was based on missing restaurant equipment following the termination of a real property lease to the debtor. The court finds the creditor failed to present evidence establishing that the debtor was responsible for the loss. The elements of §§ 523(a)(2), (4), and (6) were not satisfied. Opinion below.

Judge: Fulton

Attorneys for Debtor: Farmer & Wright, PLLC, Todd A. Farmer

Attorney for Creditor: Steve Vidmer

2017-09-01 – in re padgett

Author: Matt Lindblom

 

Springer v. RNBJ RTO LLC (In re Springer)

 

(Bankr. W.D. Ky. Aug. 16, 2017)

The bankruptcy court enters judgment against the creditor for its violation of the automatic stay. The creditor is a home furnishing leasing company that leased furniture to the debtors prepetition. While the bankruptcy case was pending, the creditor continued weekly withdrawals from the debtors’ account. The creditor then refused to return the funds and attempted to recover the leased furniture from the debtors’ home. The court awards damages for the amount withdrawn from the debtors’ account and attorney fees, and awards punitive damages in the amount of $5,000. Opinion below.

Judge: Stout

Attorney for Debtor: Ross Benjamin Neuhauser

Attorney for Creditor: Brian Kevin Darling

2017-08-16 – in re springer

Author: Matt Lindblom

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