New Cases For the Week of November 20, 2000 - November 24, 2000

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November 22, 2000

Case

Court

Holding

In re Myrvang 9th Cir. Under 11 USC 523(a)(15)(B), it is the debtor, not the creditor, who bears the burden of proving that a debt that would be nondischargeable under section 523(a)(15) nevertheless qualifies for discharge on an equitable basis.

The Bankruptcy Court has authority to grant "partial discharge" of a debt contested under 11 USC 523(a)(15), even though Congress did not use "to the extent" language in the statute.

The Bankruptcy Court has the authority to order the repayment of a debt nondischargeable under 523(a)(15) over a five-year period, but the Court lacks authority to order payment of a penalty if a default occurs during such period.

November 21, 2000

Case

Court

Holding

In re Bailey 6th Cir. BAP The terms "alimony" and "support" are given a broad construction to promote the Congressional policy that favors enforcement of obligations for spousal and child support.

Liabilities arising from a divorce court's order requiring an ex-husband to: (i) sell certain marital property and remit the proceeds to his ex-wife and (ii) assume liability for the couple's home mortgages and credit card debt, were debts in the nature of support pursuant to 11 USC 523(a)(5).

In re Weathington 6th Cir. BAP The appropriate collateral valuation method  for redemption of automobile collateral pursuant to 11 U.S.C. 722 is liquidation value, ascertained here by reference to the vehicle's "wholesale value" in the Blue Book.

November 20, 2000

Case

Court

Holding

In re CSC Industries 6th Cir. A PBGC claim in bankruptcy for unfunded future benefits which the PBGC will have to pay should be calculated using discount rates derived from the "prudent investor rule" rather than the artificially low rates promulgated by PBGC pursuant to its rule-making authority.

A PBGC bankruptcy claim for future benefits is not entitled to administrative priority as a "tax" unless the lien provided by 26 U.S.C. 412(n)(4) has arisen.

U.S. v. Kennedy 2d Cir. Concealment of assets in a bankruptcy proceeding (here, by a debtor's failure to schedule his ownership interests in certain businesses) is a violation of judicial process, warranting a two-level sentencing enhancement in a sentence for bankruptcy fraud.
 
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