202205.17
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Florida bankruptcy court denies request to dismiss chapter 7 for bad faith under §707(b)(3) totality of the circumstances

In a case that the US Trustee’s office alleged expenses were overstated on schedule J, and that schedule I should have included a draw from his business for cancer treatment as a special circumstance rather than including in monthly income, the court sided with the Debtor in denying the motion to dismiss under 11 U.S.C….

202204.18
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Should violation of a noncompete agreement lead to a debt that cannot be discharged

Judge Williamson recently denied summary judgment ruling that damages from an intentional violation of a noncompete agreement could still be discharged in a chapter 7 bankruptcy. In Edwards Moving & Rigging, Inc. v. Jenkins (In re Jenkins), 2022 Bankr. LEXIS 1047, Case No 8:21-bk-04085; adv. 8:21-ap-00316-MGW (Bankr. M.D. Fla. 14 April 2022) the district court…

202112.10
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Ft. Lauderdale bankruptcy court rules on personal jurisdiction, statute of limitations, and triggering creditor requirement for fraudulent conveyance action

In a case touching on a number of legal issues, Judge Grossman granted in part a motion to dismiss a fraudulent conveyance action, but with leave to amend, in In re Bal Harbour Quarzo, LLC, 2021 Bankr. LEXIS 3298, Case No 18-11793-SMG, Adv No 20-01079-SMG (Bankr. S.D. Fla. 3 Dec 2021).   The plaintiff in the adversary…

202110.27
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Judge Jennemann rules that living in hotel where Debtors work does not result in abandonment of homestead

The trustee in In re Patel, 2021 Bankr. LEXIS 2897, Case No 6:18-bk-00036-KSJ (Bankr. M.D. Fl. 20 October 2021) had initially abandoned the property after discussing the residence situation at the 341 meeting, but then sought to withdraw the abandonment three years later.  While the court noted that the trustee failed to show fraud or newly…

202110.12
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Arizona court discusses requirements to remove case from state court to bankruptcy court in another state

In remanding a case back to Arizona state court, an Arizona district court decision found that the case was never properly removed to the federal district court, and it may not have jurisdiction over the matter.   Great Western Bank v. Clear Vision Express Tucson 2 LLC, 2021 U.S. Dist. LEXIS 193166, case No CV-21-00883-PHX-MTL (Dist….

202110.06
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Michigan district court rejects magistrate recommendation for dismissal of class action re refusal of reaffirmed mortgage to send statements

A class action suit was filed against PNC Bank alleging violations of the Truth in Lending Act and Real Estate Settlement Procedures Act for failing to send ongoing monthly statements during and after the  chapter 7 bankruptcy case despite the HELOC being reaffirmed.  Polonowski v. Pnc Bank, N.A., 2021 U.S. Dist. LEXIS 187910, 2021 WL…