DECISION AND ORDER DENYING MOTION OF UNITED STATES TRUSTE FOR EXTENSION OF TIME UNDER 11 U.S.C. 707(b) and 727(a) PAUL R. WARREN , Bankruptcy Judge . The United States Trustee timely moved for a 60-day extension of time to both file a motion to dismiss under 707(b) and to object to the Debtor's discharge under 727(a) of the Code. (ECF No. 15). In response and in opposition to the motion, the Debtor both asserts that the UST has failed to demonstrate cause to support the requested...
DECISION AND ORDER AVOIDING TRANSFER OF REAL PROPERTY UNDER 11 U.S.C. 522(h) AND 548(a)(1)(B), RESTORING TO DEBTORS TITLE TO REAL PROPERTY UNDER 11 U.S.C. 550(a) AND OVERRULING OBJECTION TO HOMESTEAD EXEMPTION PAUL R. WARREN , Bankruptcy Judge . Joseph Hampton and Brenda Hampton filed a Chapter 13 petition on May 2, 2017. A few days later, the Hamptons commenced this adversary proceeding, under 11 U.S.C. 522(h) and 548(a)(1)(B), seeking to avoid the involuntary transfer of title...
DECISION AND ORDER AVOIDING TRANSFER OF REAL PROPERTY UNDER 11 U.S.C. 522(h) AND 548(a)(1)(B), RESTORING TO DEBTORS TITLE TO REAL PROPERTY UNDER 11 U.S.C. 550(a) AND OVERRULING OBJECTION TO HOMESTEAD EXEMPTION PAUL R. WARREN , U.S.B.J. Gliee Gunsalus and Brian Gunsalus filed a Chapter 13 petition on April 28, 2017. A few days later, the Gunsaluses commenced this adversary proceeding, under 11 U.S.C. 522(h) and 548(a)(1)(B), seeking to avoid the involuntary transfer of title to...
DECISION & ORDER Bucki , Chief U.S.B.J. In this action to avoid allegedly fraudulent conveyances, the trustee seeks to recover numerous transfers to the debtor's principal owner and three of his relatives. The case's many complex issues include the choice of law regarding the applicable "look back" period, and whether the debtor's financial statements provide adequate proof of insolvency. Since June of 2004, Joseph T. Ring has served as president and chief executive officer of National...
DECISION AND ORDER GRANTING EMERGENCY MOTION AND BARRING DEBTOR FROM FILING A BANKRUPTCY PETITION FOR ONE YEAR PAUL R. WARREN , Bankruptcy Judge . Access Point Financial, LLC filed an emergency motion requesting that the Court temporarily reopen this case for the purpose of extending further the 180-day filing injunction that was previously issued in this case. That injunction expired on November 17, 2019. The Court issued an Order temporarily re-opening this case, under 350(b) of the...
DECISION AND ORDER DENYING MOTION TO CONVERT CASE TO CHAPTER 11 AND GRANTING CROSS-MOTION TO CONVERT CASE TO CHAPTER 7 PAUL R. WARREN , Bankruptcy Judge . The Debtor has moved to convert this Chapter 13 case to a proceeding under Chapter 11. A secured creditor, Canandaigua National Bank, has cross-moved to dismiss the case or convert it to a Chapter 7 proceeding. This case has languished for over a half-year. The Debtor has demonstrated an inability to honor his commitments under both the...
DECISION AND ORDER DENYING MOTION TO EXTEND AUTOMATIC STAY TO A NON-DEBTOR GUARANTOR AND DENYING REQUEST FOR INJUNCTION UNDER 11 U.S.C. 105(a) PAUL R. WARREN , Bankruptcy Judge . When filed, this chapter 11 case appeared to be an effort to reorganize the business of a decades-old apple orchard. But, after the passage of three months since the petition was filed, this chapter 11 case is beginning to look as though it was really filed to obtain a litigation advantage in a two-party dispute...
DECISION AND ORDER GRANTING SUMMARY JUDGMENT TO THE DEBTOR MICHAEL J. KAPLAN , Bankruptcy Judge . The Court rules that the Perishable Agricultural Commodities Act of 1930, as amended (7 U.S.C. 499a-499s)(hereinafter "PACA") imposes liability on some individuals involved in farming corporations and partnerships but not on family members of a PACA dealer or merchant who is a sole proprietor with a d/b/a that sounds like something more sophisticated. Issue Is the Debtor here a PACA...
DECISION AND ORDER GRANTING MOTION FOR RELIEF FROM STAY PAUL R. WARREN , Bankruptcy Judge . I. OVERVIEW This chapter 13 case was filed to stop the public auction sale of real property in which Mr. Haynes resides. Steuben County holds title to the property, having been granted a default judgment and deed by a state court in a tax foreclosure action. The County has moved to lift the automatic stay, under 11 U.S.C. 362(d)(1), asserting that Mr. Haynes' interest in the property was...
NOT FOR PUBLICATION DECISION AND ORDER DENYING PLAINTIFFS' MOTION FOR SUMMARY JUDGMENT AND RESTORING CASE TO CALENDAR MICHAEL J. KAPLAN , Bankruptcy Judge . On or about August 23, 2016, Debtors Michael and Amelia Santoro, owners and/or officers of ANA Construction Services, Inc. entered into a contract with Plaintiffs Matthew and Barbara Rounds for the renovation of a house owned by Plaintiffs on Wehrle Drive in the Town of Amherst, NY. Payments were made and some work was performed. At...
DECISION AND ORDER DENYING MOTION TO DISMISS COMPLAINT UNDER RULE 12(b)(6) FRCP AND RULE 7012(b) FRBP PAUL R. WARREN , Bankruptcy Judge . James Davis, a Chapter 7 debtor, filed an adversary proceeding seeking to discharge student loan debt that he owes to the United States Department of Education and Navient Corporation. (ECF AP No. 1). 1 Rather than filing an answer to the complaint, USDOE has moved to dismiss the complaint under Rule 12(b)(6) FRCP, made applicable to this proceeding...
DECISION AND ORDER GRANTING MOTION TO DISMISS FOR CAUSE AND BARRING DEBTOR FROM FILING A CHAPTER 11 CASE FOR 180 DAYS PAUL R. WARREN , Bankruptcy Judge . This Chapter 11 case was filed April 5, 2019. It is the third Chapter 11 case filed by F.M. Butt Hotels, Corp. since March 5, 2019, the previous two cases having been dismissed by the Court. ( See Case Nos. 19-20222-PRW & 19-20234-PRW). This case and its predecessors were filed solely to stop a mortgage foreclosure action brought by...
DECISION AND ORDER GRANTING MOTION TO DISMISS HON. PAUL R. WARREN , United States Bankruptcy Judge . I. OVERVIEW Businesses often use Chapter 11 of the Bankruptcy Code to attempt to reorganize. While under bankruptcy protection, a Chapter 11 debtor may retain control of its business and reorganize through such means as refinancing debt, selling assets, accepting or rejecting leases, and ultimately proposing a plan of reorganization—all in an effort to manage pre-bankruptcy debt burdens....
DECISION & ORDER Bucki , Chief U.S.B.J. , W.D.N.Y. On cross motions for summary judgment, the parties to this adversary proceeding contest the liability of an entity that acquired the assets of the debtor's former employer pursuant to a secured creditor's sale under Article 9 of the Uniform Commercial Code. The central issue is whether a purchaser of property under U.C.C. 9-610 can be held responsible for the unsecured debts of the prior owner. Kevin and Robert O'Leary were the owners...
DECISION & ORDER Bucki , U.S.B.J. At times, a short abbreviation like "c/o" can change the meaning of a stated address. This meaning is at issue in this Chapter 13 case, where Wells Fargo Bank, N.A., contends that inadequacy of service should compel the Court to vacate a prior order determining the secured value of a claim. In March of 2017, Wells Fargo Bank commenced an action against Joanne Panek in the New York State Supreme Court to foreclose a mortgage on property at 809 Abbott Road...
DECISION AND ORDER DENYING MOTION TO VACATE ORDER OF DISMISSAL, DENYING REQUEST FOR NUNC PRO TUNC CONVERSION, AND DENYING EX PARTE REQUEST FOR STAY PAUL R. WARREN , Bankruptcy Judge . It is said that you can't make a silk purse out of a sow's ear. The motion before the Court proves the old adage true. The motion before the Court is so flawed, procedurally and substantively, that it deserves only short shrift. The motion is in all respects DENIED. I. JURISDICTION The Court...
DECISION & ORDER Bucki , U.S.B.J. The Chapter 7 trustee has moved for authority to recover various costs and expenses from the exempt portion of proceeds derived from a sale of the debtor's homestead. The central issue involves whether the decision of the Supreme Court in Law v. Siegel, 571 U.S. 415, 134 S.Ct. 1188 , 188 L.Ed.2d 146 (2014), will protect the full value of the claimed exemption. Jason G. Morgan filed a petition for relief under Chapter 13 of the Bankruptcy Code on...
DECISION AND ORDER DENYING MOTION SEEKING ENFORCEMENT OF THE DISCHARGE INJUNCTION AGAINST NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE PAUL R. WARREN , U.S.B.J. Joseph DeFreze was granted a chapter 7 discharge on January 12, 2018. (ECF No. 18). To Mr. DeFreze's apparent surprise, on January 28, 2018, the New York State Department of Taxation and Finance ("NYSDTF") mailed to him a "notice of adjusted assessment." (ECF No. 23, Ex. F). Despite the chapter 7 discharge, NYSDTF demanded...
DECISION AND ORDER DENYING MOTION TO VACATE DISCHARGE ORDER PAUL R. WARREN , Bankruptcy Judge . The Debtors were granted a discharge on September 7, 2017. (ECF No. 28). Prior to entry of the discharge order, the Debtors failed to enter into a reaffirmation agreement with their mortgage lender, M&T Bank. (ECF No. 45 7). As a result, their personal liability on the M&T mortgage debt was discharged. And, under 11 U.S.C. 524(c)(1), the Debtors are not permitted to enter into a...
DECISION & ORDER Bucki , U.S.B.J. During the pendency of this case in Chapter 13, the debtors executed a stipulation to extend the time to object to the discharge of a debt. Thereafter, the conversion of this case to Chapter 7 established a new deadline to challenge dischargeability. Now at issue is whether the earlier stipulation continues to apply even after conversion, so as to allow an adversary proceeding filed after the more recent deadline. Robert and Deborah Fritzinger filed a...
