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In re Melvin M. Kalata, Case No. 07-21710 (February 2008) -- Judge McGarity

Chapter 13 debtor was not allowed to take a deduction on Means Test for "future payments on secured claims" for surrendered residence.


In re Roger & Roberta Clark, Case No. 07-23390 (February 2008) -- Judge McGarity

Chapter 13 debtors were allowed to take a vehicle ownership expense deduction for a vehicle they owned free and clear.


In re Muth Mirror Systems, LLC, et al., Case No. 06-25609, Muth Mirror Systems, LLC, et al. v. Gentex Corp. v. Muth Mirror Systems, LLC, et al., Adv. No. 06-2470 Published: In re Muth Mirror Systems, LLC, 379 B.R. 805 (December 2007) -- Judge McGarity

Chapter 11 debtor, the holder of patent for a non-dichroic signal mirror, brought an adversary proceeding against a competitor that had filed a proof of claim against the estate for the competitor's alleged infringement of its patent, alleged breach of alliance agreement between the parties, and tortious interference with its contractual relations, and the competitor counterclaimed against the debtor. The court  held the debtors' patent was invalid and the competitor's product did not infringe that patent.  The competitor did, however, breach the parties' alliance agreement, causing the debtor to suffer damages.


In re Linda & Timothy Hardin, Case No. 03-31539 Published: In re Hardin, 375 B.R. 506 (September 2007) -- Judge McGarity

Creditor with a security interest in chapter 13 debtors' motor vehicle moved for relief from stay after the vehicle was destroyed in an automobile accident postpetition and postconfirmation, in order to permit it to apply insurance proceeds paid by a third-party tortfeasor's insurer to its remaining secured and unsecured claims. The debtors and trustee objected, and disputed that the creditor had an interest in the insurance proceeds to the full extent of its remaining claims.  The court granted the creditor's motion in part and denied it in part. The creditor's recovery of insurance proceeds paid by third party's insurance carrier after debtors' collateral was destroyed was limited to its allowed secured claim.


In re John & Jean Sundstrom, Case No. 05-41463, Emerging Vision, Inc. v. Sundstrom, Adversary No. 06-2286 Published: In re Sundstrom, 374 B.R. 663 (August 2007) -- Judge McGarity

Creditor brought an adversary proceeding to deny the chapter 7 debtors a discharge based on the debtor-wife's alleged fraudulent prepetition transfer of assets. The court dismissed the complaint, finding the debtors' prepetition transfer of personal property into wholly-owned corporation did not evidence wrongful intent required for a denial of discharge under sec. 727(a)(2).


In re Vincent & Paquita Young, Case No. 03-31975 Published: In re Young, 370 B.R. 799 (July 2007) -- Judge McGarity

Chapter 13 debtors sought to modify their confirmed plan, after experiencing significant medical expenses and a reduction in the debtor-husband's pay.  The court sustained the trustee's objection to the modification, in part. The chapter 13 debtors were not allowed to retroactively modify their confirmed plan to retain one-half of their tax refunds previously committed to their creditors.  Because the tax refunds were necessary for the maintenance and support of the debtors, they were allowed to prospectively retain their entire tax refunds.


In re Paul & Marsha Christensen, Case No. 03-32627 (May 2007) -- Judge McGarity

Chapter 13 trustee was compelled to remit plan payments to the creditor holding a secured claim in the debtors' vehicle pending resolution of the motion for relief from the automatic stay.


In re Lisa Perry, Case No. 06-26132 Published: In re Perry, 369 B.R. 402 (May 2007) -- Judge McGarity

Chapter 13 debtor objected to her former landlord's proof of claim. The court sustained the objection, in part, finding the residential landlord's claim for prepetition and postpetition rent did not qualify as an administrative expense under sec. 503(b).


In re Brad & Leanna Westenberg, Case No. 03-21749 Published: In re Westenberg, 365 B.R. 895 (March 2007) -- Judge McGarity

Following completion of the chapter 13 debtors' payments under their confirmed plan, the trustee moved to dismiss, on the ground that secured creditors had not been paid in full and the debtors could not feasibly satisfy the secured debts within the maximum five-year term.  The court denied the motion, finding the debtors were entitled to a discharge under the confirmed plan, even though secured claims had not been paid in full, because creditors received adequate notice of their rights under the plan and plan clearly spelled out the longer amortization periods of the secured claims.


In re Snezana & Boban Ljubic, Case No. 03-32636, Virginia E. George, Trustee v. Guaranty Mortgage Co., Adv. No. 04-2213 Published: In re Ljubic, 362 B.R. 914 (February 2007) -- Judge McGarity

Chapter 7 trustee brought an adversary proceeding to avoid a mortgage lien.  The court denied the trustee's motion for summary judgment; because no bona fide purchaser could have acquired a lien superior to the secured creditor, the perfection of the mortgage was not a preferential transfer.


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