Bankruptcy: Settlement - Property Interest 
Stephens v. Hedback (MLW No. 06354/Case No. 09-6083 - 8 pages) (U.S. Bankruptcy Appellate Panel, 8th Circuit, Federman, B.J.)
Where a Chapter 7 debtor filed an objection to a settlement between the trustees of two estates resolving division of the proceeds of the sale of real property, the debtor ignored the district court’s bar against her [...]
Castle Law settles botched bankruptcy claims lawsuit
A local law office settled a long-running legal malpractice suit shortly before it was set to go to trial this week in Jackson County Circuit Court.
Bankruptcy: Waiver Of Discharge - Approval - Creditor’s Interests
Asbury v. Alliant Bank, et al. (MLW No. 60181/Case No. 09-6026 - 7 pages)
Where a Chapter 7 sought a waiver of discharge after deciding that he did not have the resources to litigate the multiple adversary proceedings involved, the bankruptcy court properly considered the interests of the creditors as well as evidence that the debtor [...]
Bankruptcy: Fraud - Justifiable Reliance - Innocent Spouse
Treadwell v. Glenstone Lodge, Inc. (MLW No. 60158/Case No. 09-6023 - 16 pages) (U.S. Bankruptcy Appellate Panel, Kressel, C.J.)
Bankruptcy: Fraud - Justifiable Reliance - Innocent Spouse
Where a hotel appealed a bankruptcy court’s order discharging a debt incurred by a Chapter 7 debtor who failed to pay a $60,000 bill after hosting a “Red Hat” event [...]
Bankruptcy: Confirmation Of Plan - Secured Creditor’s Objection
Bank Northwest v. Potts (MLW No. 60063/Case No. 09-6053 - 6 pages) (U.S. Bankruptcy Appellate Panel, Saladino, B.J.)
Where a bank objected to the confirmation of debtors’ Chapter 13 plan, the bank did not show that the bankruptcy court erred in determining that the plan was feasible based on the projections of the debtors, and there [...]
Bankruptcy: Adversary Proceeding - Permissive Abstention - Forum Shopping
Stabler v. Beyers (MLW No. 59911/Case No. 09-6024 - 11 pages) (U.S. Bankruptcy Appellate Panel, Venters, B.J.)
Where a bankruptcy court dismissed an adversary proceeding brought by debtors who claimed a creditor’s collection attempts violated a discharge injunction, the court’s decision to abstain is affirmed based on the court’s application of collateral estoppel and permissive abstention, [...]
Bankruptcy: Denial Of Final Decree - Standard Of Review - ‘Fully Administered’ Estate
Shotkoski v. Fokkena (MLW No. 59879/Case No. 09-6063 - 8 pages) (U.S. Bankruptcy Appellate Panel, Saladino, B.J.)
Where Chapter 11 debtors appealed the denial of their motion for final decree, an abuse-of-discretion standard is used to review the bankruptcy court’s denial order, so the decision as to whether an estate is “fully administered” is within the [...]
Pre-petition ethical issues for bankruptcy lawyers
Bankruptcy attorneys face a host of ethical issues even before their clients file a petition for bankruptcy.
The goal is to preserve a nest egg or protect assets that might survive the bankruptcy process, but pre-petition planning requires a careful balance, said J. Scott Bovitz, a bankruptcy attorney at Bovitz & Spitzer in Los Angeles.
“Careful [...]
Bankruptcy: Case Closing - Standing - Request For Counsel
Powers v. Odyssey Capital Group, LLC (MLW No. 59873/Case No. 08-6038 - 12 pages) (U.S. Bankruptcy Appellate Panel, Schermer, B.J.)
Where a creditor objected to the closing of a Chapter 11 debtor’s case, the creditor’s claim was disallowed and her appeal of the disallowance was dismissed by the district court and affirmed by the Eighth Circuit, [...]
Bankruptcy: Credit Counseling - Requirement - Waiver - Exigent Circumstances
Duncan v. LaBarge (MLW No. 59832/Case No. 09-6027 - 6 pages) (U.S. Bankruptcy Appellate Panel, Kressel, C.J.)
Where Chapter 13 debtors did not receive credit counseling before filing their petition and did not obtain a waiver, dismissal of their case was appropriate since the debtors did not establish exigent circumstances.
Judgment is affirmed.
Duncan v. LaBarge (MLW No. [...]