Judge LaShonda A. Hunt - Opinions

Judge LaShonda A. Hunt

Chapter 7 Trustee sought turnover of proceeds from debtors’ prepetition sale of their homestead, that they failed to reinvest before the one-year time limit expired.  Because the Trustee did not timely object to the exemption and the snapshot rule governs, the motion to compel turnover of funds is denied.

The standing chapter 13 trustee moved to modify the debtors’ confirmed plan to account for non-exempt funds received from a post-petition personal injury claim.  Debtors objected to any requirement to turn over payments after the 5-year maximum plan term in 11 U.S.C. § 1329(c) expires.  The court overruled the objection and granted the relief as requested.

In re: Charles V. Cook, Sr.
December 17, 2019

Following a trial on motions for sanctions and examination of fees filed by the United States Trustee against a debt relief agency, its principals, and counsel, pursuant to 11 U.S.C. § 526, 11 U.S.C. § 329, and 11 U.S.C. § 105, the court imposes a civil penalty for engaging in a pattern and practice of inaccurate bankruptcy disclosures, orders disgorgement of attorney fees, and awards reasonable attorney fees and costs to the UST.  No sanctions are warranted against individual counsel.

14bk33271, 14ap00859
Following trial on an adversary complaint objecting to dischargeability under 11 U.S.C. § 523(a)(2)(A) and § 523 (a)(6), the court held that the creditor failed to meet its burden of establishing that the defendant/debtor acted with intent to defraud or harm creditors.

Secured creditor objected to confirmation of debtor’s Chapter 13 plan, requiring supplemental language be included in Section 8.1 to address claims treated in Section 3.1 of the plan. Although the debtor eventually amended the plan as requested, the court held that the creditor’s proposed language was inconsistent with the requirements of 11 U.S.C. 1325(a) and therefore the plan could not be confirmed.

14bk008893, 16ap00195
At issue is whether the law in this Circuit holds that only unpaid new value can be used by a creditor to reduce preference liability under 11 U.S.C. § 547(c)(4)(B). The court concludes the answer to that question is yes.

Debtor-company has been sued by consumers who allegedly ingested contaminated nut-alternative products.  The Chapter 7 Trustee seeks to resolve those tort claims with a global settlement that channels the proceeds from commercial liability policies issued by two insurers into a fund for distribution to the injured parties and enjoins any further claims under the policies.  Several vendors (who are additional insureds) objected to the breadth of the injunction, as impairing their contractual rights to pursue claims against the insurer.  The court holds that the proposed injunction cannot be approved.

In a successive Chapter 13 case where repeat filers failed to timely obtain an extension of the automatic stay, the court concludes that the stay terminated in its entirety on the 30th day after filing, pursuant to 11 U.S.C. § 362(c)(3).

In re Monique A. Jimmar
April 23, 2018

Chapter 13 Trustee’s objection to fee applications filed by a law firm representing debtors in numerous cases is sustained, in part.  Furthermore, the court holds that the plan does not meet the good faith requirement in § 1325(a)(3) of the Code.  Therefore, confirmation is denied.

In re Felicia Williams
April 10, 2018

Secured creditor’s objection to confirmation of an amended Chapter 13 plan that proposes to continue pre-confirmation adequate protection payments of $275 per month until debtor’s attorney fees are satisfied, and then to commence monthly payments of $741 until the allowed secured claim is paid in full, is sustained.  The plan does not meet the equal monthly payment requirement of § 11 U.S.C. 1325(a)(5)(B).