ORDER DENYING TRUSTEE'S OBJECTION TO THE DEBTOR'S AMENDED SCHEDULE C — PROPERTY CLAIMED AS EXEMPT (ECF NO. 51) CRAIG A. GARGOTTA , UNITED STATES BANKRUPTCY JUDGE . Before the Court is Trustee's Objection to the Debtor's Amended Schedule C — Property Claimed as exempt (the "Objection") (ECF No. 51 1 ). Debtor filed Debtor's Response to Trustee's Objection to the Debtor's Amended Schedule C — Property Claimed as Exempt (the "Response") (ECF No. 53). A hearing was held on the Objection and...
MEMORANDUM OPINION CRAIG A. GARGOTTA , UNITED STATES BANKRUPTCY JUDGE This Memorandum Opinion resolves the above-referenced adversary proceeding in which the Court conducted a six day trial on April 10-13 & 17-18, 2017, before taking the matter under advisement. The Court has reviewed the entire record before it; including all admitted exhibits and the weight of testimony and credibility of all witnesses. Additionally, the Court has carefully considered all evidentiary objections raised...
MEMORANDUM OF DECISION RONALD B. KING , Chief Bankruptcy Judge . On December 7, 2017 came on to be heard the trustee's Objection to Exemptions (ECF No. 28), and the Court is of the opinion that the Objection should be denied. Specifically, the trustee objects to the debtors' claimed exemption under 11 U.S.C. 522(d)(10)(A) of a lump sum past due payment of social security disability benefits. The trustee admits that the monthly payments going forward are exempt but draws a line in...
OPINION RONALD B. KING , Bankruptcy Judge . The question in this case is whether a chapter 7 debtor may retain a mobile home subject to a security interest without redeeming the property or reaffirming the debt. 21 st Mortgage Corporation ("21 st Mortgage") filed its Motion to Compel Compliance with 11 U.S.C. 521(a)(2) and to Delay Entry of Discharge (the "Motion") (ECF No. 12). Anthony Cruz Marquez and Victoria Ann Marquez (the "Debtors") filed a response and a hearing was held. The...
OPINION Ronald B. King , Chief United States Bankruptcy Judge . Before the Court are two Motions for Relief from the Automatic Stay (the "Motions") filed by LB-UBS 2007-C2 Lookout Ridge Boulevard, LLC (the Lender for Omni Lookout Ridge, L.P.) and COMM 2015-CCRE22 East Central Texas Expressway, LLC (the Lender for Omni Lion's Run, L.P.) (collectively, the "Lenders"). The Lenders ask the Court to lift the stay on the only meaningful asset in each bankruptcy estate: two apartment complexes in...
MEMORANDUM OPINION GRANTING OBJECTION TO DISCHARGE OF DEBTORS H. CHRISTOPHER MOTT , Bankruptcy Judge . John P. Robert and Wilma R. Robert ("Debtors") filed a Chapter 7 bankruptcy case. Ron Satija, Chapter 7 Trustee (as Plaintiff) initiated this adversary proceeding against the Debtors (as Defendants) objecting to the Debtors' bankruptcy discharge. The Court conducted a trial in this adversary proceeding and took the matter under advisement. The Court now issues this Memorandum Opinion...
ORDER DENYING RESIDENTIAL CREDIT SOLUTION'S, INC. MOTION TO REOPEN CHAPTER 13 PROCEEDING PURSUANT TO 11 U.S.C. 350(b) CRAIG A. GARGOTTA , Bankruptcy Judge . Came on to be considered the above-numbered bankruptcy case, and, in particular, the Residential Credit Solution's, Inc. ("RCS") Motion to Reopen Chapter 13 Proceeding Pursuant to 11 U.S.C. 350(b) (ECF No. 56) (the "Motion"), and Debtors' Response thereto (ECF No. 62). The Court has subject matter jurisdiction over this proceeding...
OPINION RONALD B. KING , Bankruptcy Judge . Buffets, LLC, and its affiliates ("Debtors" or, post-confirmation, "Reorganized Debtors") filed voluntary chapter 11 petitions on March 7, 2016. On March 22, 2016, Greenberg Traurig, LLP ("Greenberg"), began working as counsel for the Official Committee of Unsecured Creditors ("the Committee"). After lengthy and contested proceedings that included a large number of expedited motions from Debtors' original counsel, a plan was confirmed on April 27,...
OPINION Ronald B. King , Chief United States Bankruptcy Judge . The issue before the Court is whether a chapter 13 debtor has an absolute right to dismiss a case under 1307(b) of the Bankruptcy Code where the debtor has acted in bad faith and failed to disclose property of the estate. After a voluntary dismissal of this case, the chapter 13 trustee moved to vacate the order of dismissal and reinstate the case. It is the opinion of the Court that the right to dismiss under 1307(b) is...
OPINION REGARDING MOTION TO REMAND OR ABSTAIN H. CHRISTOPHER MOTT , UNITED STATES BANKRUPTCY JUDGE . Here, the Court tackles whether, at the behest of Plaintiff, this removed suit should be returned to the state court from whence it came. Ultimately, the Court finds that it must (and should) abstain, and the suit will be remanded to the state court in Brazoria County, Texas. I PROCEDURAL BACKGROUND A. Bankruptcy Case On March 8, 2015, Dune Energy, Inc., as debtor (" Debtor "),...
ORDER GRANTING IN PART, DENYING IN PART PILGRIM REO, LLC AND CAPITAL CROSSING SERVICING COMPANY, LLC MOTION FOR APPROVAL OF DEFAULT INTEREST, COSTS, EXPENSES AND ATTORNEYS' FEES UNDER 11 U.S.C. 506(b) (ECF. NO. 203) CRAIG A. GARGOTTA , UNITED STATES BANKRUPTCY JUDGE . On June 20 and 21, 2017, came on for hearing Pilgrim REO, LLC ("Pilgrim") and Party-in-Interest Capital Crossing Servicing Company, LLC (Capital Crossing) (also referred to as "Respondents") Motion for Approval of Default...
MEMORANDUM OPINION TONY M. DAVIS , UNITED STATES BANKRUPTCY JUDGE . The plaintiffs 1 here seek, in part, a judgment declaring that their bankruptcy discharge injunction has been violated; in response, the defendants 2 filed a motion to dismiss on the theory that state court litigation to establish that term assignments of oil and gas leases have terminated does not involve the assertion of a "claim," and therefore does not violate the discharge injunction. 3 I. BACKGROUND 4 A....
ORDER GRANTING PILGRIM REO, LLC'S MOTION TO DISMISS DEBTOR'S COUNTERCLAIMS PURSUANT TO FED. R. CIV. P. 12(b)(6) FOR FAILURE TO STATE A CLAIM UPON WHICH RELIEF CAN BE GRANTED CRAIG A. GARGOTTA , UNITED STATES BANKRUPTCY JUDGE . On June 20 and 21, 2017, came on for hearing Pilgrim REO, LLC ("Pilgrim") and Party-in-Interest Capital Crossing Servicing Company, LLC (Capital Crossing) (also referred to as "Respondents") Motion to Dismiss Debtor's Counterclaims Pursuant to Fed. R. Civ. P. 12 (b)(...
MEMORANDUM OPINION TONY M. DAVIS , UNITED STATES BANKRUPTCY JUDGE . If a debtor pays estimated taxes to the IRS the day before filing bankruptcy, can that payment be clawed back from the IRS by the trustee as a fraudulent transfer I. BACKGROUND AND FACTS On September 2, 2015, the Colliaus made a payment of $28,000 to the United States (Internal Revenue Service) for their 2015 estimated taxes. 1 One day later, the Colliaus filed for relief under Chapter 7 of the Bankruptcy Code. 2...
MEMORANDUM OPINION TONY M. DAVIS , Bankruptcy Judge . The Quezadas dispute, by motion for summary judgment, an IRS assessment of $1,269,561.89 in withholding tax liabilities on the basis that the individuals working for the Quezadas' business were independent contractors and not employees. Because hiring independent contractors gives rise to a separate set of withholding obligations, and because material issues of fact are in dispute, the motion will be denied. I. BACKGROUND James...
PROPOSED FINDINGS OF FACT AND CONCLUSIONS OF LAW WITH RESPECT TO TRIAL IN ADVERSARY PROCEEDING NO. 15-01110 H. CHRISTOPHER MOTT , Bankruptcy Judge . TO THE HONORABLE U.S. DISTRICT COURT JUDGE: The U.S. Bankruptcy Court for the Western District of Texas, Austin Division (Bankruptcy Judge H. Christopher Mott), submits the following Proposed Findings of Fact and Conclusions of Law ("Proposed Findings and Conclusions") to the U.S. District Court for the Western District of Texas, Austin...
MEMORANDUM OPINION TONY M. DAVIS , UNITED STATES BANKRUPTCY JUDGE . When two individuals decide to join forces and form a business venture, they can take one of two paths. The first is to seek and pay for sound legal advice to define and structure their relationship and fairly allocate business risks, and to pay for sound financial advice to properly project future financial performance and accurately record the past. Or they can eschew the advice, save a little money, and just wing it....
ORDER GRANTING AMENDED OBJECTION OF TRUSTEE TO PROOF OF CLAIM NO. 11 FILED BY THE OFFICE OF THE ATTORNEY GENERAL FOR POST-PETITION CHILD SUPPORT (ECF NO. 163) CRAIG A. GARGOTTA , UNITED STATES BANKRUPTCY JUDGE . Before the Court is Trustee's Amended Objection of Trustee to Proof of Claim No. 11 Filed by the Office of the Attorney General for Post-Petition Child Support (ECF No. 163 1 ) (the "Objection"), the Attorney General's Response thereto (ECF No. 164), and the Joinder to Objection...
OMNIBUS FINDINGS OF FACTS AND CONCLUSIONS OF LAW RONALD B. KING , Bankruptcy Judge . These omnibus findings of facts and conclusions of law pertain to thirteen applications for attorney's fees filed in the above-numbered chapter 13 bankruptcy cases. In each case, Mr. Vasquez, counsel for all above-referenced debtors, sought compensation beyond the benchmark fees, and the trustee objected. The Court held a hearing on April 6, 2017, and took the matters under advisement. The Court sustains...
