New Cases For the Week of December 11, 2000 - December 15, 2000

Brought to you by BKINFORMATION.COM - The Source for Business Bankruptcy Information on the Internet AND BKCLAIMS Marketplace - The Online Market For Bankruptcy Claims

Search This And Prior Case Summaries:

December 14, 2000

Case

Court

Holding

In re Cedar Shore Resort 8th Cir. In Chapter 11, good faith implies an honest intent and genuine desire on the part of the petitioner to use the statutory process to effect a plan of reorganization and not merely as a device to serve some sinister or unworthy purpose.

A financially healthy debtor which files Chapter 11 to attempt to dispose of a minority shareholder lawsuit has not filed its petition in good faith, and the bankruptcy court did not err in dismissing the petition.

December 13, 2000

Case

Court

Holding

In re Slyman 9th Cir. A homeowners' association must prove all five elements, including justifiable reliance, when seeking a declare of nondischargeability under 11 USC 523(a)(2)(A).
In re Gregory 10th Cir. The bankruptcy court did not err in finding that a debtor/ security officer's practice weapon was not exempt as a tool of the trade under Wyoming law.

December 12, 2000

Case

Court

Holding

In re Bassett 9th Cir. BAP There is no private right of action for violation of the discharge injunction, although a debtor aggrieved by such a violation can redress the wrong through a contempt action.

December 11, 2000

Case

Court

Holding

In re Newpower 6th Cir. Funds that a debtor embezzled prepetition are not property of the estate.  However, where a debtor uses embezzled funds to purchase property from a third party good faith transferee, such purchased property is property of the bankruptcy estate, subject to a possible constructive trust in favor of the owner of the embezzled funds.  The Court's prior decision in In re Omegas holds that a person claiming a constructive trust in a bankruptcy estate must have obtained a prepetition declaration of such trust under State law.  Since the constructive trust claimants here had not obtained such a a declaration before the bankruptcy filing, they were mere proportional unsecured creditors with respect to the property which the debtor had purchased using the embezzled funds. 
 
Copyright 2001  [BKINFORMATION.COM]. All rights reserved.