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Articles from Tampa Bankruptcy

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 situation of a debtor paying in fees before confirmation, but ultimately not getting the case confirmed.  The court interpreted a number of statutes in making such determination.

Post Filing Amendments to Means Test should use Current Standard Expenses

    In a case that can make a difference in a number of chapter 13 cases, Judge Mark in the Southern District of Florida ruled that when an amended means test is filed in chapter 13, the standard expenses allowed on the means test should be those in effect on the date the amendment is filed, not those in effect when the bankruptcy was filed.  In re Mosley, 2022 Bankr. LEXIS 3219, Case No 19-15907-RAM (Bankr. S.D.

N.D. Texas court finds Household size for purposes of means test should be economic unit approach

   In a detailed opinion from Judge Larson in the Bankruptcy Court for the Northern District of Texas the court found that in determining household size for purposes of a chapter 13 case, the appropriate test is the economic unit approach.  In re Poole, 2022 Bankr. LEXIS 2776, 2022 WL 5224087, Case No 21-32224 (Bankr. N.D. Tex, 30 Sept. 2022).  As of the filing of the Pooles' bankruptcy seven individuals were living in their home: the joint debtors, Mrs.

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 case, including a recent decision from the 9th Circuit B.A.P.  In TICO Constr. Co. v. Van Meter (In re Powell), 2022 Bankr. LEXIS 3019, BAP No. NV-22-1014-FLB (21 October 2022).

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.

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. §707(b)(1) and (b)(3).  In re Miller, 2022 Bankr. LEXIS 1382, Case No. 3:21-bk-02093-BAJ (Bankr. M.D. Fl., 13 May 2022).  J. Burgess.  

Texas bankruptcy court requires amendment of 'shotgun pleading' complaint

    In Chowdary v. Ozcelebi (In re Ozcelebi), 2021 Bankr. LEXIS 3541, Case no 10-70295, Adv. no 21-7001 (Bankr. S.D. Tex. 29 December 2021) the Court ruled on a motion to dismiss a dischargeability complaint for violations of Fed. R. Civ. P. 8(a)(2), 9(b), and 10(b).  The complaint asserted that the debt to plaintiff should be excepted from discharge under 11 U.S.C. §§523(a)(2)(A), (a)(4), and (a)(6).  The Court described the problem as 'shotgun pleadings', e.g.

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 proceeding was the liquidating trustee of a trust.  He filed an 18 count complaint against a number of defendants related to a failed real estate development project.  

Judge Jennemann rules that living in hotel where Debtors work does not result in loss of homestead in separate property

   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 discovered evidence warranting revocation of the abandonment, the court went on to note that it would have allowed the exemption regardless.  

Tennessee bankruptcy court rules on standards to tax fees under §523

   In Dr. Gil Center for Back, Neck and Chronic Pain Relief v. Rigney (In re Rigney), 2021 Bankr. LEXIS 2824, Case no 4:20-bk-12437-NWW, Adv No 4:21-ap-01002-NWW (Bankr. E.D. Tenn.

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