Material facts in dispute precluded summary judgment in debtor's adversary proceeding to recover transfer of non-homestead property in real estate tax foreclosure allegedly done in violation of the automatic stay and for less than reasonably equivalent value.
Court granted relief from automatic stay under sec. 362(d)(3)(A) because single asset real estate debtor's proposed chapter 11 plan did not have reasonable possibility of being confirmed within reasonable time. Additional factor establishing "cause" for relief under sec. 362(d)(1) was prepetition stay waiver within forbearance agreement between debtor and secured lender.
State court's $500 sanction award and findings regarding frivolous and abusive nature of chapter 7 debtor's state law counterclaim against plaintiff did not encompass the requisite specific intent to cause willful and malicious injury under section 523(a)(6), precluding summary judgment.
Court recommended granting summary judgment dismissing adversary proceeding based upon ordinary course of business and new value defenses to the preference action. The Court took into account the seasonal variations in the debtor's business cycle when considering the parties' ordinary course of business.
Creditor was denied summary judgment and sec. 523(a)(3)(A) cause of action against chapter 7 debtors was dismissed. Although creditor had not received notice of bankruptcy in time to file a timely proof of claim in asset case, it had knowledge of bankruptcy case in time to file a tardy proof of claim and fully participate in the distribution under sec. 726(a)(2)(C), but chose not to do so.
Creditor's motion for summary judgment seeking an order requiring the marshaling of assets, namely by requiring another bank to liquidate the real property mortgaged by non-debtors prior to executing on the real property mortgaged by the chapter 12 debtors, in which creditor also had a secured interest, was denied.
Chapter 13 debtors objected to mortgagee's secured claims. Error in description of mortgage caused it to be indexed outside chain of title, resulting in a voidable lien. Reversed: Bank of New York Mellon Trust Co. v. Debtors, Case No. 12-C-846 (E.D. Wis. Jan. 15, 2013) (holding search of tract index is not sufficient for a purchaser to be considered in good faith and without notice)
US Trustee moved to dismiss chapter 7 debtors' case pursuant to section 707(b), arguing the debtors' expenses, including tuition for parochial school, were excessive. Debtors countered that section 707(b)(2)(A)(ii)(IV), which limits deductions for education expenses on the means test, was unconstitutional because it suppressed their right to practice religion. The court found section 707(b)(2)(A)(ii)(IV) was not unconstitutional and granted the motion to dismiss.
Chapter 7 Trustee was granted summary judgment against seller of truck due to transaction with debtor being construed as a "consignment for security" and subject to avoidance by the trustee.
Secured creditor's motion to dismiss complaint for failure to state a claim was granted. Bank had standing to enforce the Note and Mortgage.