Judge Pamela S. Hollis - Opinions

01 B 19852

Chapter 13 Trustee moved to dismiss case where debtor would have to continue to make payments beyond 5 years in order to complete her plan. Held: Although the court cannot confirm or modify a plan which would extend beyond 5 years, the fact that payments will be made for more than 5 years does not per se require dismissal under 1307(c). With that in mind, the court considered the particular factual circumstances and determined that cause for dismissal did not exist under 1307(c). Motion to dismiss denied.

05 B 12554

Receiver appointed in District Court litigation sought authority to sell Chapter 11 Debtor's interest in a limited liability company to one of the LLC members. Third party objected and submitted an offer. Receiver changed tactics and filed a motion seeking approval of bid procedures. The LLC objected and engaged in extensive briefing with the third party over whether the LLC's Operating Agreement was an executory contract. Parties also disputed whether the right of first refusal held by the other members of the LLC was enforceable in bankruptcy. HELD: The Operating Agreement of this particular LLC is not an executory contract. The right of first refusal is neither an ipso facto clause nor a restraint on assignment, and is enforceable. The Receiver's motion for approval of bid procedures is granted.

03 B 16263, 03 A 02122

Debt owed by debtor contractor who took funds from customer but did not perform work and who forged insurance certificate found nondischargeable under 11 USC 523(a)(2)(A). Debtor's discharge denied under 11 USC 727(a)(4)(A) based on false testimony at meeting of creditors and during trial as well as false statements in schedules and statement of financial affairs. Discharge also denied under 11 USC 727(a)(3) and (a)(5).

In Re: Braude Jewelry Corp.
September 30, 2005

00 B 04596

Braude Jewelry filed chapter 11 and successfully confirmed its plan, including assumption of two leases. Within a year, Reorganized Braude filed a new liquidating chapter 11. After accomplishing certain actions -- including rejecting those assumed leases -- Braude II was dismissed. Meanwhile, the UST moved to convert Braude I to Chapter 7 and a trustee was appointed. The landlords whose leases were assumed in Braude I and rejected in Braude II filed claims in Braude I, seeking administrative priority for the claims arising from the breach of their leases. The IRS also filed a claim in Braude I, seeking allowance of a claim based on penalties for unpaid withholding and FICA taxes incurred during Braude II's post-petition business operations. The Braude I trustee filed an omnibus objection to claims. Held: Objections overruled and (1) landlords' claims allowed with administrative priority and (2) IRS claim allowed as a priority unsecured claim.

In Re: James Brown
July 8, 2005

03 B 23239

Chapter 13 debtor not required to turn over proceeds of refinance to Trustee.

03 B 42061, 03 A 04790

Plaintiff sought finding that state court sanctions judgment against defendant was nondischargeable pursuant to 523(a)(6). At summary judgment, court had ruled that only issue for trial was whether defendant had the subjective knowledge that plaintiffs were substantially certain to be injured by his frivolous pleadings. Following trial, court held that defendant did have such subjective knowledge and therefore his debt was declared nondischargeable.

04 B 26948

Our Chapter 13 Model Plan does not modify a mortgagee's rights in violation of the Code. Instead, it simply provides a mechanism for adjudicating disputes involving those rights, such as might arise over postpetition defaults, fees, and costs of collection.

In Re: Elizabeth T. Dilling
February 24, 2005

04 B 03574

Judgment debtor did not have sufficient assets to obtain an appeal bond, and after several efforts to post alternative security, filed an individual chapter 11 case. Judgment creditor moved to dismiss the bankruptcy as a bad faith filing or in the alternative to appoint trustee or convert case. Motion denied following an evidentiary hearing.

In Re Renee Jackson
October 21, 2004

00 B 24953

Confirmation of a chapter 13 plan, alone, does not value individual assets scheduled by debtor. Bankruptcy Court must hold a hearing to expressly value an asset for purposes of 348(f) of the bankruptcy code.

97 B 16918, 02 A 01859

Upon reconsideration, Debtor satisfied all three elements of the Brunner test and her student loan was discharged pursuant to 11 U.S.C. section 523(a)(8). Availability of income-contingent repayment plan did not preclude finding of undue hardship.