202301.20
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10th Circuit in first decision on court of appeals level, finds chapter 13 trustee not entitled to retain fees paid if case not confirmed

In the first court of appeals ruling on the issue, the 10th Circuit Court of Appeals ruled that chapter 13 trustees were not entitled to retain trustee fees in cases that were not confirmed. Goodman v. Doll (In re Doll), 2023 U.S. App. LEXIS 1073 (10th Cir., 18 January 2023). The case involved the usual…

202210.27
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Ninth Circuit BAP affirms chapter 13 debtor’s absolute right to dismiss case that had not been previously converted

An issue that arises occasionally in chapter 13 practice occurs when a debtor filed under chapter 13, but then changes their mind and wants out of bankruptcy, despite a request from another party to convert the case to chapter 7. The great majority of cases appear to support the debtor’s absolute right to dismiss the…

202206.07
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Florida district court rules order on reconsideration of objection to claim determining priority status was final order, dismissing appeal from confirmation of chapter 11 plan

There is a very short 14 day period to appeal final orders in bankruptcy. A question can often arise whether an order is final or not. This was the situation in A&S Entm’t LLC v. Florida, case no. 22-cv-20919-BLOOM, 2022 U.S. Dist. LEXIS 100789 (S.D. Fla., 6 June 2022). Here the chapter 11 debtor objected…

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…