MEMORANDUM OF DECISION THOMAS J. CATLIOTA , U.S. BANKRUPTCY JUDGE . Janet Nesse, the Chapter 7 trustee, objects to the exemption claimed under 11 U.S.C. 522(b)(3)(B) by the debtor, Alexander Britton Browne, III, for his interest in real property he owns with his nonfiling wife as tenants by the entireties. ECF 17. The trustee, relying on U.S. v. Craft, 535 U.S. 274 , 122 S.Ct. 1414, 152 L.Ed.2d 437 (2002), contends the debtor's entireties interest is not exempt to the extent of the...
MEMORANDUM OPINION WENDELIN I. LIPP , U.S. BANKRUPTCY JUDGE . Before the Court are the "Motion and Memorandum by Petitioning Creditors to Vacate Order Dismissing Case or, in the Alternative, to Vacate Bar to Refiling; or, in the Alternative, to Decline to Award Damages Upon Dismissal of Involuntary Bankruptcy Petition" (the "Motion to Vacate") and the Opposition thereto filed by Gray and Associates, LLC, the state court receiver for the above-captioned Alleged Debtor (the "Receiver"). The...
MEMORANDUM OPINION MICHELLE M. HARNER , U.S. BANKRUPTCY JUDGE . Creditors' distributions in bankruptcy cases are governed by the priority scheme codified in the U.S. Bankruptcy Code. 1 That scheme is designed to ensure fair and equitable distributions to similarly-situated creditors. Consequently, courts generally are reluctant to deviate from the statutory priority scheme, absent clear guidance from Congress that the requested deviation is appropriate. One such statutory directive is...
MEMORANDUM OPINION WENDELIN I. LIPP , Bankruptcy Judge . Before the Court is the United States Trustee's Complaint to Deny Discharge of Debtor pursuant to 11 U.S.C. 727(a)(2), 727 (a)(3), 727(a)(4), 727(a)(5), and 727(a)(6) (the "Complaint") and the Debtor/Defendant's Answer thereto. The Court held a trial in this proceeding on May 21-22, 2018, at which time the Court took this matter under advisement. The Court has reviewed the pleadings, considered the arguments and testimony...
MEMORANDUM OPINION MICHELLE M. HARNER , U.S. BANKRUPTCY JUDGE . This adversary proceeding involves a failed business relationship. Robert Siegal and Lawrence Everett formed a business entity known as Farm Fresh Direct by A Cut Above, LLC ("Farm Fresh" and collectively with Mr. Everett, the "Defendants"). At some point subsequent to the filing of Mr. Siegal's chapter 13 case, the Defendants sought to sever their business relationship with Mr. Siegal by, among other things, attempting to...
MEMORANDUM TO COUNSEL DAVID E. RICE , Bankruptcy Judge . The court has reviewed the Joint Status Report submitted by the parties in accordance with the Amended Scheduling Order entered June 18, 2018. The court will defer consideration of whether to refer this adversary proceeding for a settlement or other ADR conference until after resolution of any dispositive motions timely filed in accordance with the Amended Scheduling Order.
MEMORANDUM OF DECISION THOMAS J. CATLIOTA , Bankruptcy Judge . Plaintiff Conner, Inc. ("Conner") brings this adversary proceeding against debtor and defendant Eric W. Abell seeking a determination that amounts due to Conner from Mr. Abell's now defunct company, Eric W. Abell, Inc. ("Abell, Inc."), are nondischargeable debts of Mr. Abell under 11 U.S.C. 523(a)(2)(A) and (B) and (a)(6). Now before the court is a motion for summary judgment filed by Mr. Abell, opposed by Conner. ECF 18, 20....
MEMORANDUM OPINION REGARDING THE MOTION OF THE UNITED STATES TRUSTEE FOR PARTIAL SUMMARY JUDGMENT MICHELLE M. HARNER , U.S. BANKRUPTCY JUDGE . This matter presents what would appear to be a relatively simple question — i.e., what qualifies as a "consumer debt" under the U.S. Bankruptcy Code. 1 But appearances can be deceiving. The Code defines a consumer debt as one incurred for a personal, family, or household purpose. 11 U.S.C. 101(8). The purpose of the debt is the critical inquiry....
MEMORANDUM OPINION MICHELLE M. HARNER , U.S. BANKRUPTCY JUDGE . This matter requires the Court to consider how long a defendant may wait to raise defenses to an action, particularly where there appears to be no issues concerning notice and due process in the original proceeding. More specifically, may a defendant — with knowledge of a state court proceeding against him — take no action in that proceeding, but still contest the findings of the state court in a subsequent bankruptcy case...
MEMORANDUM OF DECISION THOMAS J. CATLIOTA , Bankruptcy Judge . The plaintiff and debtor, Maria L. Mejia, brings this adversary proceeding against defendants Partners for Payment Relief LLC ("PPR") and Partners for Payment Relief DE III LLC ("DE III") (collectively, the "Defendants"), alleging they sought to coerce the Plaintiff into paying her discharged loan in violation of the discharge injunction of 11 U.S.C. 524(a). The parties filed cross-motions for summary judgment on liability....
MEMORANDUM OF DECISION THOMAS J. CATLIOTA , U.S. BANKRUPTCY JUDGE . On April 22, 2016, plaintiff Pierre Richard Augustin filed a complaint seeking discharge of his student loan debt pursuant to 11 U.S.C. 523(a)(8). Now before the court is the motion for summary judgment filed by defendant United States Department of Education (the "DOE"), opposed by Mr. Augustin without the assistance of counsel. ECF 48, 49, 50, 51. For the reasons set forth in this memorandum, the court grants summary...
MEMORANDUM OPINION DAVID E. RICE , U.S. BANKRUPTCY JUDGE . This case is before this court for a decision on the Chapter 13 trustee's objection to confirmation of the debtor's proposed Chapter 13 plan. The court held a hearing on confirmation of the plan on April 24, 2018. The relevant facts are not in dispute. After hearing the legal arguments of counsel, the court held this matter under advisement. After due deliberation and consideration of the facts and the legal arguments, the court...
MEMORANDUM OPINION WENDELIN I. LIPP , Bankruptcy Judge . Before the Court are two separate complaints filed against the Defendant. The first is a Complaint Objecting to Discharge of Debts (the "Maryland Complaint") filed by the State of Maryland, Department of Commerce ("Commerce") and the Maryland Agriculture & Resource-Based Industry Development Corporation ("MARBIDCO")(together, Commerce and MARBIDCO are the "Maryland Plaintiffs"). The second is the Amended Complaint Objecting to...
MEMORANDUM OPINION MICHELLE M. HARNER , U.S. BANKRUPTCY JUDGE . A creditor holding a right to payment under applicable nonbankruptcy law generally may file a proof claim in a debtor's bankruptcy case under section 501 of the U.S. Bankruptcy Code. 1 The U.S. Supreme Court recently explained that a creditor might file such a proof of claim even if the claim underlying the right to payment is time barred under applicable nonbankruptcy law. See Midland Funding, LLC v. Johnson, ___ U.S....
MEMORANDUM OPINION This is the second of two cases in which this court was asked to determine the extent to which a condominium should be granted relief from the automatic stay to pursue collection of post-petition assessments from a debtor who surrendered an over-encumbered condominium unit under a previously confirmed Chapter 13 plan. Neither the lender nor the condominium objected to confirmation of that plan. Unlike the plan considered in In re Wiley, 2018 WL 604401, 581 B.R. 441 (...
AMENDED MEMORANDUM OPINION MICHELLE M. HARNER , Bankruptcy Judge . A trustee in bankruptcy 1 generally may avoid any postpetition transfer of property belonging to the bankruptcy estate that is not authorized by the U.S. Bankruptcy Code 2 or the court. 11 U.S.C. 549. Some courts have determined that the trustee's ability to recover an avoidable postpetition transfer is limited if the transferee has a secured claim against the estate. See 11 U.S.C. 550; In re C.W. Min. Co., 477...
MEMORANDUM OPINION DAVID E. RICE , U.S. BANKRUPTCY JUDGE . The matter now before the court for decision is the Motion for Relief from Automatic Stay filed by Council of Unit Owners of Waterford Landing Condominium (the "Condominium"). The debtor, Christopher D. Wiley (the "Debtor"), filed a response and partial objection to the motion. The Condominium requests termination of the automatic stay to permit it to (i) foreclose its in rem lien rights against the Debtor's condominium unit,...
MEMORANDUM OPINION MICHELLE M. HARNER , U.S. BANKRUPTCY JUDGE . The claims at issue in this adversary proceeding have spawned years of litigation between the parties. Although the claims are multifaceted, those addressed by this Memorandum Opinion focus on alleged damage to, and a failure to repair and maintain, a condominium unit owned by Dr. Paul C. Clark. Dr. Clark and his family, Ms. Rebecca Delorme and Paul Clark, Jr. (collectively with Dr. Clark, the "Creditors"), moved into the...
MEMORANDUM OPINION MICHELLE M. HARNER , U.S. BANKRUPTCY JUDGE . This dispute involves two matters that most individuals hold very dear — their families and their homes. As such, emotions have run high throughout the various underlying administrative and judicial proceedings, which began in January 2010. The Court understands that both parties adamantly believe in their respective positions. By its analysis below, the Court means neither to diminish nor disparage how any of the parties...
