Marshall v. Blake

(7th Cir. Mar 22, 2018)

The Seventh Circuit affirms the bankruptcy court after determining it has jurisdiction to hear the direct appeal from the bankruptcy court pursuant to Bankruptcy Rule 8008. The court holds that the bankruptcy court correctly overruled the trustee’s objection to confirmation of the Chapter 13 plan. The plan appropriately applied the debtor’s tax credit and refund to the debtor’s disposable income calculation by converting it to an increase to monthly income. The trustee argued that the refund should be applied to additional plan payments and that it was inappropriate to apply it to the debtor’s monthly income. Opinion below.

Judge: Flaum

Attorney for Trustee: Lauren L. Tobiason

Attorneys for Debtor: James A. Brady, Jamie F. Reisman

2018-03-22 – in re blake

Author: Matt Lindblom

Wheatley v. Johnson (In re Johnson)

(Bankr. W.D. Ky. Dec. 21, 2017)

The bankruptcy court enters judgment in favor of the trustee, finding a prepetition transfer from the debtor to her son was a fraudulent transfer under 11 U.S.C. §§ 547 and 548. The debtor had transferred her tax refund to her son for the purpose of paying certain bills and obligations of the son. The debtor did not receive reasonably equivalent value and the Court declines to adopt the “no harm, no foul” rule defense (i.e. wildcard exemption is not fully used, but could have been used for the subject funds). Opinion below.

Judge: Lloyd

Attorney for Trustee: Peter M. Gannott

Attorney for Defendant: Ross Benjamin Neuhauser

2017-12-21 – in re johnson

Author: Matt Lindblom