MEMORANDUM OF DECISION DENYING DEBTORS' OBJECTION TO PROOF OF CLAIM JIM D. PAPPAS , Bankruptcy Judge . I. Introduction Chapter 13 1 debtors Gary and Jacqueline Smith ("Debtors") object to the third amended proof of claim ("POC") filed in this case by creditor Idaho Independent Bank ("the Bank"). Dkt. No. 116. The Bank responded to the objection. Dkt. No. 118. Debtors thereafter replied to the Bank's response. Dkt. No. 120. A hearing on the objection was conducted on October 19, 2016,...
MEMORANDUM OF DECISION TERRY L. MYERS , Bankruptcy Judge . In this adversary proceeding, the Court must determine if a chapter 7 debtor is entitled to a discharge of his debts. In litigating this issue, the parties addressed events, disputes and litigation spanning two decades and three bankruptcies. In June 2013, the United States Trustee ("UST" filed a complaint objecting to the discharge of debtor Philip L. Hart ("Hart") under 727(a), commencing Adv. No. 13-07017-TLM. 1 Prior to...
MEMORANDUM OF DECISION JIM D. PAPPAS , Bankruptcy Judge . Introduction The Plaintiff in this avoidance action, chapter 7 1 trustee, R. Sam Hopkins ("Trustee"), filed a motion for a default judgment (the "Motion") against the Defendant, Digital Federal Credit Union ("Creditor"). Dkt. No. 9. No answer had been filed in response to Trustee's complaint, Dkt. No. 1, and no opposition to the Motion was filed by Creditor. However, because resolution of the Motion implicated an interesting...
MEMORANDUM OF DECISION TERRY L. MYERS , CHIEF U.S. BANKRUPTCY JUDGE . Before the Court are the motions of several third-party defendants requesting dismissal of the third-party complaint filed by pro se defendant, counterclaimant, cross-claimant and third-party plaintiff, Steve Davis ("Davis"), and also Davis's motion to strike the trustee's answer to his counterclaim. For the reasons set forth below, Davis's third-party complaint against all third-party defendants will be dismissed, and...
MEMORANDUM OF DECISION TERRY L. MYERS , Bankruptcy Judge . North Sky Communications, Inc. ("Plaintiff") brought this adversary proceeding seeking to except its debt from the discharge of chapter 7 debtor Ronald A. Ivie, Jr. ("Debtor"). 1 Debtor received his discharge on July 6, 2016. Case No. 16-00374-TLM at Doc. No. 32. Plaintiff's cause is alleged under 523(a)(2)(A), (a)(4) and (a)(6). Plaintiff also named ID Consulting Solutions, LLC ("IDCS") as a defendant. As alleged in the Second...
MEMORANDUM OF DECISION Honorable Jim D. Pappas , United States Bankruptcy Judge . Introduction In this chapter 7 1 case, the Court is asked to revisit an exemption ruling it made in 2001. In doing so, the Court determines that, based upon changes made to the Federal tax laws, a different result is now required. 2 Facts On July 23, 2015, Daren Robert Farnsworth and Michele Farnsworth ("Debtors") filed a chapter 7 bankruptcy petition. Dkt. No. 1. When they filed their return for tax...
MEMORANDUM OF DECISION Honorable Jim D. Pappas , United States Bankruptcy Judge . Introduction In this chapter 7 1 case, trustee Gary L. Rainsdon ("Trustee") filed a motion for turnover ("the Motion") requesting that the Court order debtors Stephen J. Anderson and Melanie Anderson ("Debtors") to pay over certain real estate commissions they had received to Trustee for distribution to creditors. Dkt. No. 43. Debtors objected to the Motion. Dkt. No. 44. The Court conducted an evidentiary...
MEMORANDUM OF DECISION JIM D. PAPPAS , Bankruptcy Judge . On June 23, 2016, Randal J. French filed his "Second Application for Approval of Compensation and Notice" ("the Second Application") in this case, Dkt. No. 90. The itemization accompanying the Second Application details French's services provided to Debtor Sharon Bergmann, generally, concerning pending litigation in state court to collect money judgments against third parties, to file and defend a prior fee application, to obtain...
MEMORANDUM OF DECISION ON MOTION FOR RECUSAL, DOC. NO. 251 JIM D. PAPPAS , Bankruptcy Judge . Before the Court is a motion of the chapter 7 debtor, 1 Allen L. Wisdom ("Debtor"), seeking the recusal of the undersigned Judge. Doc. No. 251 ("Recusal Motion"). It is based on Debtor's memorandum in support, Doc. No. 252, "and all pleadings, papers and documents on file herein and [in the] related Adversary Proceeding Case No. 13-06045-TLM." Doc. No. 251 at 2. The Court takes judicial notice of...
MEMORANDUM OF DECISION RE DEFENDANTS' MOTION TO DISMISS Honorable Jim D. Pappas , United States Bankruptcy Judge . Introduction Via a motion to dismiss this adversary proceeding filed by chapter 7 1 debtors Roxanne Lee Nicholas and William John Nicholas ("Defendants"), Dkt. No. 8, the Court is asked to review the legal adequacy of the amended complaint objecting to discharge (the "Amended Complaint") filed by creditors Mary Nicholas Torres, Sophia Nicholas, and Georgina Nicholas...
MEMORANDUM OF DECISION TERRY L. MYERS , Bankruptcy Judge . BACKGROUND On November 12, 2014, Richard Stover ("Plaintiff") was awarded a $2,342.05, state court judgment for overpayment and reimbursement of child support against Melody Stover ("Defendant"). On August 26, 2015, Defendant filed a voluntary chapter 7 bankruptcy petition, which halted Plaintiff's collection on his state court judgment. See Case No. 15-01145-TLM. Defendant has not disputed the debt owed to Plaintiff or its...
MEMORANDUM OF DECISION Honorable Jim D. Pappas , United States Bankruptcy Judge . Introduction Chapter 7 1 trustee R. Sam Hopkins ("Trustee") objected to allowance of the claim of creditor Dale T. Davis ("Creditor") in this bankruptcy case. Dkt. No. 99. Creditor responded to Trustee's objection. Dkt. No. 104. On June 15, 2016, the Court conducted a hearing concerning the matter and took the issues under advisement. Dkt. No. 128. The parties filed post-hearing briefs. Dkt. Nos. 131,...
MEMORANDUM OF DECISION JIM D. PAPPAS , Bankruptcy Judge . Introduction This is another decision involving Eric Olsen's ("Counsel") unsuccessful attempt to properly represent his clients in an Idaho chapter 7 1 bankruptcy case. This Memorandum is, effectively, a companion to the thoughtful, thorough decision authored by Chief Judge Myers in another chapter 7 case involving very similar facts, in which Counsel was ordered by the Court to disgorge the fees received from an Idaho debtor-...
MEMORANDUM OF DECISION TERRY L. MYERS , Chief Bankruptcy Judge . On November 3, 2015, the Court entered an order denying a motion of James R. Zazzali, Trustee of the DSBI Estate Litigation Trust ("Plaintiff") for summary judgment and ordering Plaintiff and Defendant Marty Goldsmith ("Defendant") to engage in mediation and report the results of that mediation to the Court in March 2016. Doc. No. 157. On March 14, 2016, the mediator, Walter H. Bithell, filed a report. Doc. No. 158. Mr....
MEMORANDUM OF DECISION Honorable Jim D. Pappas , United States Bankruptcy Judge . Introduction In the motion before the Court, chapter 12 1 debtor Silva Dairy, LLC ("Debtor") asks the Court to revoke its prior approval of the fee application of Debtor's former counsel, Harry C. DeHaan ("DeHaan") and to require that he disgorge all amounts paid to him for those fees. Motion to Revoke Approval of Application for Attorney Fees and for Disgorgement of Fees Paid to Harry C. DeHaan, Dkt. No....
MEMORANDUM OF DECISION TERRY L. MYERS , Chief Bankruptcy Judge . INTRODUCTION In 2003, the Honorable Jim D. Pappas of this Court wrote an article outlining the issues that arise under the Bankruptcy Code, the Bankruptcy Rules and the Idaho Rules of Professional Conduct ("IRPC") when a lawyer agrees to "appear for" another lawyer at a 341(a) meeting. See Hon. Jim D. Pappas, Simple Solution = Big Problem, 46 THE ADVOCATE 31 (Oct. 2003) (official publication of the Idaho State Bar) (...
MEMORANDUM OF DECISION TERRY L. MYERS , CHIEF U.S. BANKRUPTCY JUDGE . In the chapter 7 case filed by Timothy Resler ("Resler") and Kimberly Resler (collectively "Debtors"), the trustee, Janine P. Reynard ("Trustee"), commenced an adversary proceeding against Bank of America ("BofA") to avoid under 547 a security interest held by BofA. 1 Peterson, Japan, LLC ("Peterson") filed a motion to intervene, which this Court granted. 2 Trial was held on May 25, 2016, and the matter was taken...
MEMORANDUM OF DECISION Honorable Jim D. Pappas , United States Bankruptcy Judge . Introduction In this adversary proceeding, chapter 7 1 debtor Elizabeth Margaret McDowell ("Plaintiff") asks this Court to declare that the student loan debts she owes Education Credit Management Corporation ("ECMC") and the U.S. Department of Education ("DOE") should be discharged in her bankruptcy case because the obligation to repay them will impose an undue hardship upon her. See 523(a)(8); Dkt....
MEMORANDUM OF DECISION Honorable Jim D. Pappas , United States Bankruptcy Judge . Introduction The chapter 7 1 trustee, R. Sam Hopkins ("Plaintiff") commenced this adversary proceeding against Teresa Wright ("Defendant") seeking authorization to sell certain real property she co-owned with debtor Lonnie Lynn Labbee ("Debtor"), as well as an order for turnover of the property. See Am. Compl., Dkt. No. 13. Trial of the action was held on March 10, 2016, after which the Court took the...
MEMORANDUM OF DECISION JIM D. PAPPAS , Bankruptcy Judge . Introduction Before the Court is a motion for stay pending appeal filed by chapter 7 1 debtors Gary and Jennifer Porrett 2 ("Debtors"). Dkt. No. 76. The trustee, Noah G. Hillen ("Trustee") has objected to the motion. Dkt. No. 77. Upon consideration of the briefs and applicable law, and being familiar with the undisputed facts, the Court concludes that oral argument will not assist in the decisional process, and therefore,...
