New Cases For the Week of January 7, 2002 - January 11, 2002

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January 11, 2002

Case

Court

Holding

In re Petro 7th Cir. The bankruptcy court erred in requiring the debtors to continue to submit sworn affidavits with statements of their income and check stubs to the standing Chapter 13 Trustee after confirmation of their plan.
In re Miller 8th Cir.  In a nondischargeability action against am investment advisor, the bankruptcy court erred in imputing the advisor's fraud to his supervisors by way of the "controlling person" provision § 20(a).
In re Long 8th Cir. BAP The bankruptcy court did not err in finding that repayment of a student loan would impose an undue hardship on the debtor, even though the debtor presented no expert testimony regarding her present or future medical condition.

January 10, 2002

Case

Court

Holding

In re Barnes 7th Cir. Although some Indiana case law indicates that liquor licenses are not property, the debtor's license possesses the attributes of property and was sold by the trustee.  Indiana law does not prohibit attachment of an involuntary lien on a liquor license. 
In re Wick 8th Cir.  When a debtor's stock options had not vested on the petition date, the bankruptcy estate was entitled to the part of the options’ value that was the result of the debtor's pre-petition services, less her exemption amount.
In re Perkins 8th Cir. Rule 4004 (governing the time frame for filing dischargability objections) is not jurisdictional but, rather, subject to the defenses of waiver, estoppel and equitable tolling.

January 9, 2002

Case

Court

Holding

Walls v. Wells Fargo Bank
(DBN Subscription Required)
9th Cir. There is no implied private right of action for violation of the discharge injunction.  The appropriate remedy is a contempt proceeding, not an individual or class action claim for damages or a claim for violation of the Fair Debt Collection Practices Act. 
In re Paulson
(DBN Subscription Required)
8th Cir. An appeal of a bankruptcy sale is not moot if the court can render relief as to the sale proceeds.  However in this case the sale proceeds would be property of the bankruptcy estate even if the debtor prevailed on appeal, thereby rendering the appeal moot.
 
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