Section 707(b) allows a Chapter 7 bankruptcy case to be dismissed as an abuse. Section 707(b)(2) allows a case to be dismissed if the debtor fails the "means test"; that is, if the debtor's income over the previous six months exceeds the expenses allowed by the IRS...
Month: November 2009
November 2009: Rochester cases up, but not by much
Rochester Bankruptcy case filings, as of the evening of November 18, 2009: Bankruptcy case 09-23082 was filed November 18, 2009. In comparison, case 3082 was filed in Rochester on: 2008: November 28 (10 days later) 2007: December 17 (29 days later) 2004: July 16 (4...
Fixtures and the homestead exemption: Grucza
In re Grucza 09-11140 (Decision Sept. 9, 2009, Judge Kaplan): Is a pile of cinder blocks similar to storm windows stored in the garage or more like a not-yet-installed hot tub? Or perhaps like George Washington's statute? Or Cleopatra's Needle? Judge Kaplan wrestled...
Filing of claims in reopened cases
In re J&S Conveyor, Inc. 95-22963 (Decision August 11, 2009; Judge Ninfo, Rochester). Complicated decision in an old, reopened case. The debtor corporation filed Chapter 11 Oct. 27, 1995. Apparently the corporation was the beneficiary of a life insurance policy...
PMSI car loan includes roll-over debt: Peaselee appeal
Peaslee (2nd Circuit Oct. 9, 2009): Peaslee is a Western District of New York Chapter 13 case appealed all the way to the Second Circuit Court of Appeals in New York City, which, in turn, certified the central issue of the case to the New York State Court of Appeals....
Reasonably anticipated changes in income and expenses: CFCU Federal Credit Union v. Frisbie
CFCU Federal Credit Union v. Frisbie; 2009 U.S. Dist. LEXIS 89464 (W.D.N.Y., Judge Siragusa, Sept. 28, 2009). This case, filed in March of 2006, was one of the early post-BAPCPA (Bankruptcy Abuse Prevention & Consumer Protection Act of 2005) cases. CFCU Federal...
Self-employment net income exempt: Dziedzic
In re Dziedzic 08-14061 (Decision March 24, 2009; Judge Bucki, Buffalo): Personal services income exemption for self-employed applies to net income only. Debtor, a self-employed chiropractor, asserted a 90% personal services exemption for services rendered 60 days...
Acceleration of a mortgage does not turn it into a short term mortgage: Maiorino
In re: Maiorino 08-21335 (Decision March 11, 2009; Judge Ninfo) In this case a Chapter 13 debtor attempted to modify a long-term mortgage by paying it off in full within the plan at below-contract rate of interest (See the case note in Laimer, in the 2008 cases.) The...
Exempting life insurance after Wornick decision: MacDonald
In re MacDonald 08-11741 (Decision March 10, 2009; Judge Bucki, Buffalo) Motion by debtors to compel trustee to return life insurance proceeds turned over pursuant to the 2002 decision in Teufel etc. Prior to 2008, Western District of New York courts held that when a...
Successor creditors must prove they own the claim: Doherty
In re: Doherty 06-22278 & Benedetti 07-21620 (Decision February 23, 2009; Judge Ninfo): Proofs of claims were filed in each case by alleged successors to the original creditors. The Trustee objected to the claims, and the Court disallowed them, as the claimant...