MEMORANDUM DECISION DENYING APPLICATION OF WILLIAMS, LLP FOR ALLOWANCE OF FEES AND REIMBURSEMENT OF EXPENSES GARY SPRAKER , Bankruptcy Judge . T. Edward Williams, Esq. of Williams, LLP seeks approval of attorney fees and expenses incurred both pre- and postpetition while representing the debtor Hearts and Hands of Care, Inc. (Hearts and Hands). The United States Trustee (UST) has opposed the application, and Hearts and Hands has joined in the opposition. The court heard oral argument on...
MEMORANDUM DECISION DENYING MOTION FOR RECONSIDERATION GARY SPRAKER , Bankruptcy Judge . T. Edward Williams, counsel for the debtor, seeks reconsideration of the court's Order Granting United States Trustee's Motion for Disgorgement and Turnover (Order) (ECF No. 79) that requires Mr. Williams to turn over $22,577.00 to the debtor's principal. For the reasons set forth below, the court will deny the request for reconsideration. A. BACKGROUND The United States Trustee (UST) filed its...
MEMORANDUM DECISION DENYING CONFIRMATION OF DEBTOR'S CHAPTER 13 PLAN GARY SPRAKER , United States Bankruptcy Judge . Debtor Carol A. Johnson (Debtor) seeks confirmation of her chapter 13 plan (Plan), which proposes to apply any payments received from the Alaska Permanent Fund Dividend (PFD) over the term of her plan in excess of $1,000.00 per year as a "pre-payment" to her monthly plan payments. 1 The chapter 13 trustee (Trustee) has objected. In her supplemental brief, Debtor succinctly...
POST-TRIAL MEMORANDUM DECISION GARY SPRAKER , United States Bankruptcy Court . Debtor Wilson Nabong (Mr. Nabong) and his then-girlfriend Liew Zavacky (Ms. Zavacky) opened an e-cigarette business together in Anchorage, Alaska. Ms. Zavacky invested her savings and incurred additional debt to open and initially operate the business. Approximately one year later, the couple ended their personal relationship. After they parted, Mr. Nabong promised to repay Ms. Zavacky the funds she invested in...
MEMORANDUM DECISION ON MOTION FOR RELIEF FROM THE AUTOMATIC STAY GARY SPRAKER , United States Bankruptcy Judge . For over five years, debtor Leo Blas has challenged the efforts of creditor Bank of America, N.A. (BANA) to pursue its state court remedies with regard to Mr. Blas's real property located at 24245 Temple Drive, Chugiak, AK 99567 (Property). In yet another effort to pursue those remedies, BANA has filed a motion for relief from the automatic stay as to the Property, based on...
MEMORANDUM DECISION ON DEBTOR'S REMAINING OBJECTIONS TO PROOF OF CLAIM 3 FILED BY BANK OF AMERICA, N.A. GARY SPRAKER , Bankruptcy Judge . On July 5, 2018, the court entered its Order (1) Overruling in Part Objection to Proof of Claim 3-1 and (2) Setting Evidentiary Hearing (Order), 1 overruling in large part the objection filed by debtor Leo Blas to proof of claim 3-1 filed by creditor Bank of America, N.A. (BANA). Pursuant to its Order, the court set an evidentiary hearing at which the...
MEMORANDUM DECISION RE: OBJECTION TO PROOF OF CLAIM 5 GARY SPRAKER , Bankruptcy Judge . The debtor, Jessica Giroux, objects to proof of claim 5 (Claim) under 11 U.S.C. 502(d), alleging that certain pre-petition payments made to the claimants, Philip and Rebekah Johnston, constitute fraudulent and preferential transfers that have not been repaid. For the reasons set forth below, the court will sustain Jessica's objection in part and deny it in part. A. BACKGROUND Brad Giroux (Jessica's...
AMENDED MEMORANDUM DECISION RE: OBJECTION TO PROOF OF CLAIM 4-1 GARY SPRAKER , Bankruptcy Judge . The debtor, Jessica Giroux, objected to proof of claim 4-1 (Claim), alleging that the person who filed the Claim, Philip Johnston, does not own the Claim and thus has no standing to assert it. For the reasons set forth below, the court will sustain Jessica's objection in part. A. BACKGROUND Brad Giroux (Jessica's husband) and Philip Johnston were partners in Alaska Fishing Adventures, LLC (...
MEMORANDUM DECISION RE: MOTION TO SELL REMAINING ESTATE ASSETS GARY SPRAKER , United States Bankruptcy Judge . The chapter 7 trustee has filed a motion to sell the remaining assets in the debtor's chapter 7 estate, chief among them litigation claims against part owner Brad Giroux and his wife, Jessica. Competing purchase offers have been submitted by Brad Giroux's father, Robert Giroux, and Brad's former business partner in the debtor, Philip Johnston and his wife, Rebekah. The trustee has...
MEMORANDUM DECISION ON TRUSTEE'S APPLICATION TO DISBURSE PROCEEDS FROM SALE OF LIQUOR LICENSE GARY SPRAKER , United States Bankruptcy Judge . The court previously approved the chapter 7 trustee's (Trustee) sale of a beverage dispensary license (License) for $175,000. 1 The Trustee is holding the proceeds from the sale, and filed his Application to Disburse Proceeds from Sale of Liquor License (Application) seeking authorization to distribute the sale proceeds pro-rata to various...
MEMORANDUM ON DEBTORS' MOTION TO ENFORCE JOINT PLAN OF REORGANIZATION AND TO PROHIBIT THE SETOFF OF NON-MUTUAL OBLIGATIONS GARY SPRAKER , United States Bankruptcy Judge. Debtor Miller Energy Resources, Inc. (MER) seeks to recover millions of dollars from the State of Alaska (State) for statutory tax credits resulting from its natural gas operations. The State has commenced an audit of 2010 and 2011 tax credit certificates issued to Cook Inlet Energy, LLC (CIE) that the State redeemed...
MEMORANDUM ON APPLICATION OF SCOTT M. BORUFF FOR ADMINISTRATIVE EXPENSE CLAIM (ECF No. 591) GARY SPRAKER , United States Bankruptcy Judge . Scott M. Boruff has filed an Application for Administrative Expense Claim ("Application")(ECF No. 591), in which he seeks to recover the sum of $252,657.53, representing the prorated portion of his contractual salary as executive chairman for Miller Energy Resources, Inc. ("MER") for the four month period between the filing of MER's chapter 11 petition...
MEMORANDUM DECISION RE SANCTIONS PURSUANT TO ORDER TO SHOW CAUSE, AND ON DISMISSAL OF CASE GARY SPRAKER , Bankruptcy Judge . On March 9, 2017, the court conducted a hearing on its Order to Show Cause and Setting Hearing ("Order") (ECF No. 20). Pursuant to the Order, the court required Eric Auten, counsel for the debtor, to personally appear, and show cause why sanctions should not be entered for the filing of the instant bankruptcy. Mr. Auten appeared and provided testimony at the hearing....
MEMORANDUM DECISION GARY SPRAKER , United States Bankruptcy Judge . In this adversary proceeding, plaintiff Neil Atkinson seeks denial of debtor Jack Jason Page's discharge under 11 U.S.C. 727(a)(4)(A), on the grounds that the debtor has knowingly and fraudulently made a false oath in connection with his bankruptcy case. Atkinson's complaint alleges the debtor should be denied a discharge because he intentionally omitted "numerous creditors" from his schedules and statements. At trial,...
MEMORANDUM DECISION RE: 1) TRUSTEE'S MOTION TO DECLARE DONALD A. TANGWELL A VEXATIOUS LITIGANT; AND 2) TANGWALLS' MOTION TO FIND ALL JUDGMENTS, ORDERS, AND MEMORANDUM VOID AB INITIO FREDERICK P. CORBIT , Bankruptcy Judge . THIS MATTER came before the court 1 on April 5, 2017 for a hearing on (1) the Chapter 7 Trustee's Motion to Declare Donald A. Tangwall, a Vexatious Litigant and Require Pre-Filing Order for Him or His Entities to File any Pleadings; and to Vacate Lis Pendens ("Trustee's...
MEMORANDUM DECISION GARY SPRAKER , Bankruptcy Judge . In this adversary proceeding, plaintiff Deloycheet, Inc. ("Deloycheet") seeks to establish and except from discharge a $400,000 debt that arose as a consequence of the actions taken by the defendant, and debtor, Corbett James Beach, III ("Beach"), on the grounds of fraud, under 11 U.S.C. 523(a)(2)(A), and willful and malicious injury under 523(a)(6). 1 Deloycheet also seeks an award of treble damages under the Alaska Unfair Trade...
MEMORANDUM ON CROSS MOTIONS FOR SUMMARY JUDGMENT GARY SPRAKER , Bankruptcy Judge . Plaintiff All American Oilfield, LLC ("All American") filed this action to establish the priority of liens it asserts against defendant Cook Inlet Energy, LLC's ("Cook Inlet") natural gas wells located on North Fork Unit 24-26, North Fork Unit 42-35, and North Fork Unit 34-26 (collectively, the "North Fork wells"), and the natural gas remaining in those wells. The liens arise under Alaska statutes for unpaid...
MEMORANDUM REGARDING ATTORNEY FEES DUE FIRST BANK FOR ITS CLASS 3 CLAIM IN CONFIRMED PLAN HERB ROSS , Bankruptcy Judge . 1. SUMMARY OF RULING The debtor seeks to compel the restructuring of First Bank's oversecured $2.7 million Class 3 claim for just the amount of principal and interest owing, without including $41,800 in attorney fees claimed by First Bank. However, the debtor did not identify the amount comprising Class 3 with sufficient clarity in the plan to exclude attorney fees...
MEMORANDUM DECISION THAT FUNDS HELD BY CHAPTER 13 TRUSTEE SHOULD BE RETURNED TO DEBTOR HERB ROSS Bankruptcy Judge . The basis for ruling how the $17,253.11 in funds held by the chapter 13 trustee from plan payments should be distributed is set forth in sufficient detail to explain the court's ruling in the Proceeding Memorandum at ECF 260 on 09/06/16. The only open question was whether it was possible that these funds were from prepetition property of the estate. If the plan payments...
MEMORANDUM ON OBJECTION TO HOMESTEAD EXEMPTION GARY SPRAKER , United States Bankruptcy Judge . An evidentiary hearing on creditor Karen Montague's Objection to Homestead Exemption (ECF No. 15) was held on July 21, 2016. The court has considered the record herein and the testimony at the hearing. For the reasons stated below, the court will sustain the Objection, and disallow the debtor's homestead exemption. I. Case Background. Debtor Keith Vaughn filed his chapter 7 petition on March 30,...