OPINION MARY P. GORMAN , Chief Bankruptcy Judge . The Debtors' Chapter 13 plan ("Plan") is before the Court for confirmation. The Chapter 13 Trustee ("Trustee") has objected to confirmation, arguing that the Debtors should not be allowed to deduct postpetition 401(k) 1 contributions in calculating their disposable income because no such contributions were made during the six months before this case was filed. The Trustee also asserts that the reduction in the Debtors' disposable income...
OPINION Thomas L. Perkins , United States Bankruptcy Judge . This matter is before the Court on cross-motions for summary judgment on the complaint filed by Jeana K. Reinbold (the "Trustee"), against Morton Community Bank (MCB). Ms. Reinbold is serving as the Trustee in the Chapter 7 bankruptcy case filed by Mid-Illini Hardwoods, LLC (the "Debtor"). She filed suit against MCB to avoid and recover ten payments made by the Debtor to MCB between November 5, 2010, and August 12, 2011,...
OPINION MARY P. GORMAN , Bankruptcy Judge . Before the Court is the Chapter 7 Trustee's Motion to Allow Debtor's POA to Borrow and Turnover Cash Value of Life Insurance. Because there is no authority to grant the requested relief, the Motion will be denied. I. Factual and Procedural Background Venita R. Tanner ("Debtor") filed a voluntary petition under Chapter 7 of the Bankruptcy Code on March 9, 2017. Her petition, schedules, and other required documents were signed by her adult son,...
OPINION MARY P. GORMAN , Chief Bankruptcy Judge . Before the Court is the Debtor's Motion to Convert from Chapter 7 to Chapter 13. The Chapter 7 Trustee objected, asserting that the Debtor does not have an absolute right to convert and that conversion is not in the best interest of the creditors and would allow the Debtor to avoid the consequences of his conduct that might warrant the denial of his Chapter 7 discharge. After an evidentiary hearing, consideration of the arguments and...
OPINION MARY P. GORMAN , Bankruptcy Judge . Before the Court is the Chapter 13 Trustee's Motion to Dismiss. Confirmation of the Debtor's Chapter 13 Plan is also at issue. Because the Debtor does not have sufficiently stable and regular income to enable him to make payments under a Chapter 13 plan, he is not eligible to be a debtor under Chapter 13 and his case must be dismissed or converted. The Court does not reach the issue of plan confirmation. I. Factual and Procedural Background...
OPINION Thomas L. Perkins , United States Bankruptcy Judge . This matter is before the Court on the motion for summary judgment filed by the Defendant, Sammy Mayfield Pierce (Debtor), on the complaint filed by Bart Winkler and Rose Lake Development, Inc., the Plaintiffs, seeking a determination that the Debtor's liability to them under a settlement agreement is nondischargeable pursuant to section 523(a)(19) of the Bankruptcy Code. Background The Debtor was the developer of a unique...
OPINION Thomas L. Perkins , United States Bankruptcy Judge . This matter is before the Court on the Defendants' motion to dismiss the Complaint under Fed. R. Civ. P. 12(b)(6) for failure to state a claim upon which relief can be granted. The plaintiff is the chapter 7 Trustee of the estate of the Debtor, Sandburg Mall Realty Management LLC, an Illinois limited liability company that owned a retail shopping mall in Galesburg, Illinois. Initially filed under Chapter 11, the case was...
