Edmonton State Bank v. Smith (In re Smith)

(Bankr. W.D. Ky. Dec. 6, 2017)

The bankruptcy court finds that two tobacco pole barns on the debtor’s property were fixtures and thus subject to the plaintiff bank’s mortgage. Two other creditors with security interests in the debtor’s personal property argued that the barns were instead subject to their liens and thus the insurance proceeds following destruction of the barns in a wind storm should be subject to their lien. The court analyzes Kentucky law on fixtures and rules in favor of the mortgage holder. Opinion below.

Judge: Lloyd

Attorney for Plaintiff: T. Richard Alexander, II

Attorney for Debtor: Sullivan Mountjoy Stainback & Miller PSC, K. Timothy Kline

Attorney for Defendants: Brian R. Pollock; Adam R. Kegley

2017-12-06 – in re smith

Author: Matt Lindblom

In re Wilson

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

The bankruptcy court grants the creditor’s motion for stay relief to proceed with a state court foreclosure action. The creditor had obtained an order granting stay relief in a prior bankruptcy filed by the debtor’s son, the owner of the property. The debtor’s life estate interest in the property does not prevent the foreclosure action from proceeding. Opinion below.

Judge: Lloyd

Attorney for Debtor: Mark H. Flener

Attorney for Creditor: Bradley S. Salyer

2017-11-01 – in re wilson

Author: Matt Lindblom

In re Lynn

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

The bankruptcy court overrules the Chapter 7 trustee’s objection to the debtor’s claimed exemption. The debtor moved to reopen her case, add a personal injury cause of action to her schedules, and claim an exemption in a portion of the recovery on the cause of action. The court holds that Law v. Siegel is applicable, and thus the court does not have authority to deny the exemption even if bad faith exists. Opinion below.

Judge: Lloyd

Attorney for Debtor: Darren K. Mexic

Trustee: Jerry Burns

2017-10-16 – in re lynn

Author: Matt Lindblom

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