DECISION AND ORDER ON EDUCATIONAL CREDIT MANAGEMENT CORPORATION'S MOTION TO DISMISS SUSAN V. KELLEY , Bankruptcy Judge . The Debtor's confirmed Chapter 13 plan (the "Plan") provides that the Debtor's student loans are "deemed current" during the Plan and after the Plan's completion. Educational Credit Management Corporation ("ECMC"), the holder of the Debtor's government-guaranteed student loan, moved to dismiss the case on account of the provision. (ECF No. 27.) The Debtor filed a...
DECISION AND ORDER DENYING MOTION FOR RELIEF FROM JUDGMENT SUSAN V. KELLEY , Bankruptcy Judge . The District Court withdrew the reference of this adversary proceeding, granted judgment for the Defendants on the common law claims, and remanded the case to this Court to determine the Debtors' core bankruptcy claims that the mortgage creditor lacked standing. After reviewing the original promissory note, the Debtors eventually conceded the standing issue, and the Court dismissed the adversary...
ORDER FOR JUDGMENT MARGARET DEE McGARITY , Bankruptcy Judge . For the reasons stated in the Court's Memorandum Decision entered on this date, IT IS ORDERED the debt owed by the Debtor-Defendant to the Plaintiff is excepted from discharge under 11 U.S.C. 523(a)(2)(A).
MEMORANDUM DECISION Margaret Dee McGarity , United States Bankruptcy Judge . This matter came before the Court on Harry Kaufmann Motorcars, Inc.'s ("Kaufmann") complaint to determine dischargeability of debt, based on a fraudulent check tendered for the down payment on a vehicle purchased by Antoinette S. Benton ("Ms.Benton"). The Court held a trial on September 3, 2015, and took the matter under advisement to allow the parties an opportunity to address additional issues. Kaufmann...
DECISION AND ORDER SUSTAINING WELLS FARGO'S OBJECTION TO CONFIRMATION Susan V. Kelley , Chief United States Bankruptcy Judge . Under Bankruptcy Code 1325(a)(5)(B)(iii)(I), the holders of certain secured claims are entitled to receive "equal monthly payments." Wells Fargo Bank, N.A. d/b/a Wells Fargo Dealer Services ("Wells Fargo") holds such a claim. The Debtors' Chapter 13 plan proposes to pay post-confirmation adequate protection payments to Wells Fargo until the Debtors' attorney's...
DECISION AND ORDER G. MICHAEL HALFENGER , Bankruptcy Judge . Credit Acceptance Corporation ("CAC") has a security interest in the debtor's 2008 Chrysler PT Cruiser (the "Vehicle"), which secures the debtor's car-loan repayment obligation. CAC filed an $8,457.05 secured claim. See Claim 1-1. The debtor's proposed chapter 13 plan requires the chapter 13 trustee to pay CAC, Bank of America (which also holds a secured claim), and attorney's fees. CM-ECF Doc. No. 2. The plan does not state the...
MEMORANDUM DECISION Susan V. Kelly , Chief U.S. Bankruptcy Judge Bankruptcy Code 707(b)(2)(D) exempts certain veterans from undergoing "any form of means testing" when attempting to qualify for Chapter 7 relief. The wealthy debtors in this case argue that they qualify for a Chapter 7 discharge under this exemption. Thomas and Natasha Rowell (the "Debtors") filed a Chapter 7 petition on April 30, 2014. Thomas is a psychiatrist and a reservist in the United States Army who was called...
DECISION AND ORDER DISMISSING COMPLAINT SUSAN V. KELLEY , Chief Bankruptcy Judge . Landmark Credit Union ("Landmark") filed this adversary proceeding against Santresa Ammons (the "Debtor") for allegedly committing fraud in the creation of a $5,582.96 debt to Landmark. The Debtor admitted depositing a check that was later dishonored but denied committing fraud. The Court held a trial on August 25, 2015 at which Paul Peterson testified for Landmark and the Debtor testified on her own behalf....
DECISION AND ORDER ON DEBTORS' OBJECTION TO CLAIM FILED BY RED WING MEADOWS OWNERS ASSOCIATION Susan V. Kelley , Chief U.S. Bankruptcy Judge Can by-laws of a homeowners association create a secured lien for attorneys' fees incurred in litigating with the homeowner in litigation won by the homeowner In this case, the homeowners argue that only unpaid assessments, not attorneys' fees, constitute a lien on their property. On March 16, 2015, Carl and Linda Segebrecht (the "Debtors") filed a...
MEMORANDUM DECISION Susan V. Kelley , U.S. Bankruptcy Judge This case involves the attempt by the principals of a failed remodeling business to discharge thousands of dollars of unpaid invoices to their suppliers, despite Wisconsin's theft by contractor law. The Debtors urge that the enhanced standard for defalcation adopted by the Supreme Court in Bullock v. Bankchampaign, N.A., ___ U.S. ___, 133 S.Ct. 1754 , 185 L.Ed.2d 922 (2013) dictates this result, but the suppliers vigorously...
MEMORANDUM DECISION Susan V. Kelley , Chief U.S. Bankruptcy Judge . This case involves car loans made to debtors who acted as "straw borrowers" for a friend who owned a car dealership and promised to repay the loans when he sold the cars. The cars, if they existed, have vanished, and the car dealer is in jail. The creditor seeks a declaration that the debtors' debt on the car loans is nondischargeable. FACTS On November 6, 2007, Carrie Watkins, now known as Carrie Reichartz ("Carrie"),...
MEMORANDUM DECISION Susan V. Kelley , Chief U.S. Bankruptcy Judge The Official Committee of Unsecured Creditors of Great Lakes Quick Lube, L.P. (the "Committee") brought this action against T.D. Investments I, LLP ("T.D.") seeking to avoid a lease termination transaction as a preference or fraudulent transfer. The Committee's standing to pursue these claims is grounded in the confirmed Chapter 11 plan of Great Lakes Quick Lube Limited Partnership (the "Debtor"). FACTS In the lease...
MEMORANDUM DECISION SUSAN V. KELLEY , Chief U.S. Bankruptcy Judge . This case involves the tragic shooting death of 17-year-old Douglas Schmeckpeper ("Douglas") by Tyson Lewis (the "Debtor"). The Debtor claimed he did not know the gun was loaded, and the shooting was an accident. He pled guilty to second degree reckless homicide and served fifteen years in prison. In 2001, while the Debtor was incarcerated, Douglas's parents, Neil and Stella Schmeckpeper (the "Plaintiffs") obtained a...
MEMORANDUM DECISION ON DEBTOR'S OBJECTION TO PROOF OF CLAIM Margaret Dee McGarity , United States Bankruptcy Judge . This matter came before the court on the chapter 13 debtor's objection to the priority status of the claim filed by Attorney Julie M. Gay, who represented the debtor's former spouse in state court proceedings. The debtor asserts that Ms. Gay's claim is not entitled to priority status because the debt stems from litigation misconduct on the part of the debtor and is not in...
MEMORANDUM DECISION Susan V. Kelly , Chief U.S. Bankruptcy Judge . This case involves the elusive "phantom discharge" that a spouse in a community property state can receive without filing bankruptcy. 1 Wisconsin is a community property state, and the twist here is that the spouses filed Chapter 7 bankruptcies at different times. The second spouse to file is now trying to claim the benefit of the discharge in her spouse's case. Background and Procedural Status Tina M. Dahle-Fenske (the...
MEMORANDUM DECISION SUSAN V. KELLEY , Chief Judge . The issue, one of first impression, is what happens when a veteran's 540-day exclusion from the means test expires during a Chapter 7 bankruptcy case. The U.S. Trustee claims that the expiration of the 540-day period revives the obligation to complete the means test form. The Debtors contend that as long as they filed bankruptcy before the 540-day exclusion period ended, they are exempt from means testing. The facts are not disputed....
