MEMORANDUM DECISION SUSAN V. KELLEY, Bankruptcy Judge. The Trustee seeks to avoid a mortgage using the "strongarm" power of 11 U.S.C. 544(a)(3). Under this provision, the trustee can exercise the rights and powers of a hypothetical bona fide purchaser of the debtor's real property on the filing date. In effect, 544(a)(3) asks: Suppose the debtor, instead of filing bankruptcy, had transferred the same real property to a bona fide purchaser who knew nothing of a claimant's asserted interest...
MEMORANDUM DECISION ON DEBTOR'S OBJECTION TO CLAIM FILED BY MARVIN THOMAS KNIGHTON SUSAN V. KELLEY, Bankruptcy Judge. The issue is whether the proof of claim of Marvin Thomas Knighton ("Mr. Knighton") should be disallowed as barred by either the First Amendment or the statute of limitations. The Court has authority to enter a final order on this dispute pursuant to 28 U.S.C. 157(b)(2)(B). Statement of Facts The Archdiocese of Milwaukee (the "Debtor") filed a petition for relief under...
MEMORANDUM DECISION SUSAN V. KELLEY, Bankruptcy Judge. John Hemken (the "Debtor") paid a lot of money for a business selling promotional model equipment such as pint-sized cranes, bulldozers and fire trucks. The business failed, leaving at least two unhappy creditors in its wake. When the Debtor filed bankruptcy, Towsley's, Inc. ("Towsley's") filed a complaint to except the Debtor's debt from discharge under 11 U.S.C. 523(a)(4) and (a)(6). Wan Ho Industrial Co., Ltd. ("Wan Ho") also...
MEMORANDUM DECISION SUSAN V. KELLEY, Bankruptcy Judge. On January 22, 2014, over three years into this bankruptcy case, Commercial Union Insurance Company n/k/a OneBeacon Insurance Company ("OneBeacon") filed a motion to terminate the automatic stay to allow the continuation of insurance coverage litigation in the Wisconsin Supreme Court. The Archdiocese of Milwaukee (the "Debtor") objected to the motion, and OneBeacon responded. A hearing was held on March 12, 2014, and the Court urged the...
DECISION G. MICHAEL HALFENGER, Bankruptcy Judge. The United States Department of Housing and Urban Development and Seaway Bank & Trust Company hold claims that are secured by junior mortgages encumbering the principal residence of chapter 13 debtors Mark and Sharon Monroe. The Monroes allege — and no one contests — that they owe more to Wells Fargo Bank, N.A., which holds the senior mortgage encumbering their residence, than their residence is worth. The Monroes seek a judgment declaring that...
DECISION G. MICHAEL HALFENGER, Bankruptcy Judge. Chapter 13 debtor Toya Jones moved for permission under 11 U.S.C. 327 to employ special counsel to pursue an illegal repossession claim against Capital One Auto Finance. After a hearing on the motion, I denied it, reasoning that 327 governs only trustees' employment of professionals. See Court Minutes and Order, Nov. 27, 2013, CM-ECF No. 37. See also In re Tirado, 329 B.R. 244 , 248-50 (Bankr. E.D.Wis.2005). I afforded the chapter 13...
MEMORANDUM DECISION SUSAN V. KELLEY, Bankruptcy Judge. Harambee Community School, Inc. ("Harambee") closed its doors without paying about $50,000 in unemployment contributions to the State of Wisconsin, Department of Workforce Development ("DWD"). DWD tried to collect the unpaid contributions from Harambee's administrator, Lenora Smith Davis (the "Debtor") under Wis. Stat. 108.22(9). She filed a petition under Chapter 13 of the Bankruptcy Code, and DWD filed this adversary proceeding for...
