OPINION LAURA K. GRANDY , Bankruptcy Judge . This case presents the issue of whether, for purposes of a motion to dismiss pursuant to 11 U.S.C. 707(b)(1), a debtor's student loan obligations must be characterized as "consumer debt." FACTS The relevant facts have been stipulated to in the Joint Stipulation of Facts filed on August 16, 2019 ("Joint Stipulation") and are not in dispute. William Steiner ("Debtor") filed his voluntary Chapter 7 petition on February 26, 2019. He scheduled $...
OPINION Laura K. Grandy , UNITED STATES BANKRUPTCY JUDGE . On March 1, 2019, this Court entered an order in this case requiring Debtor Chad Robert Bullock ("Debtor") to file an amended plan to provide for one hundred percent repayment to his unsecured creditors. The amendment was precipitated by the Debtor's post-petition receipt of a $92,430.84 worker's compensation award. Pursuant to the terms of the order, the amended plan was to be filed within thirty (30) days. If the Debtor...
OPINION In Proceedings Under Chapter 13 LAURA K. GRANDY , Bankruptcy Judge . This case presents the issue of whether the Court must dismiss or convert a Chapter 13 case for cause where, due to substantial educational loans, a debtor exceeds the debt limits imposed by 11 U.S.C. 109(e). FACTS Debtor Barbara A. Mosley ("Debtor") filed a petition under Chapter 13 of the Bankruptcy Code on May 21, 2018. On her Schedule E/F, the Debtor listed unsecured, non-contingent, liquidated debts...
OPINION LAURA K. GRANDY , Bankruptcy Judge . The issue before the Court is whether a nonrefundable child tax credit is exempt under Illinois law as a public assistance benefit. The relevant facts, set forth below, are based on the record in this case and on the representations contained in the Trustee's Findings of Facts and Conclusions of Law. Counsel for the Debtor did not file any findings nor has he disputed the facts as set forth by the Trustee. According to the Debtor's 2017 tax...
OPINION LAURA K. GRANDY , Bankruptcy Judge . This matter is before the Court on the Chapter 13 Trustee's Complaint to Revoke the Debtors' Discharge under 11 U.S.C. 1328(e). The Debtors/Defendants filed an amended motion to dismiss the complaint for failure to state a claim upon which relief can be granted. A hearing on the motion was held on August 20, 2018, at which time the Court granted the Debtors' motion. This Order serves as the written record of the Court's oral findings and...
OPINION LAURA K. GRANDY , Bankruptcy Judge . This matter is before the Court on a motion filed by First Mid-Illinois Bank & Trust, N.A. f/k/a First Clover Leaf Bank ("the Bank") to enforce a settlement agreement with the Debtors. The Bank is the Debtors' primary secured creditor. On the date of filing, the Debtors owed the Bank approximately $1,717,426.29, plus interest, fees and costs. The indebtedness to the Bank is secured by first priority liens and security interests in substantially...
OPINION Laura K. Grandy , UNITED STATES BANKRUPTCY JUDGE . In this case, the Court is asked to decide whether a chapter 7 debtor may claim two separate exemptions, each in the amount of $15,000.00, for payment received on account of personal bodily injury. The Debtor seeks to exempt $15,000.00 for personal bodily injury arising from a pre-petition automobile accident, as well as $15,000.00 for injuries related to a pre-petition products liability claim. The Court finds that under the...
OPINION WILLIAM V. ALTENBERGER , Bankruptcy Judge . The matter before this Court is the Chapter 13 Trustee's (Trustee) Objection to Confirmation of the Debtor's Second Amended Chapter 13 Plan (Plan) on the grounds that the Plan was not filed in good faith. At the confirmation hearing neither the Trustee nor the Debtor presented evidence, instead choosing to rely on the facts shown by the schedules and pleadings. The facts are not in dispute. Prior to filing this Chapter 13 case, the...
OPINION Laura K. Grandy , UNITED STATES BANKRUPTCY JUDGE . This matter is before the Court on confirmation of the chapter 13 plan filed by Michael S. Eubanks and Alicia F. Eubanks ("Debtors") and on the objection thereto filed by the Chapter 13 Trustee, Russell C. Simon ("Trustee"). The Debtors filed a chapter 13 plan with a proposed duration of five years. Pursuant to the terms of the plan, general unsecured creditors will be paid 100% of their claims. The Trustee objects to confirmation...
OPINION WILLIAM V. ALTENBERGER , Bankruptcy Judge . Before the Court is the motion for summary judgment filed by the United States of America, Internal Revenue Service, and the Debtors' cross motion for summary judgment. The ultimate issue before the Court is whether certain tax obligations of the Debtors owed to the IRS are dischargable. A determination of that issue involves the interaction of several sections of the Bankruptcy Code, 6330(e) of the Internal Revenue Code and Internal...
OPINION Laura K. Grandy , UNITED STATES BANKRUPTCY JUDGE . This matter is before the Court on a motion filed by the chapter 7 trustee for turnover of any post-petition voluntary separation incentive payments ("VSI payments") payable to the debtor from the U.S. Department of Defense. The debtor opposes the motion on the basis that such payments are excluded from the bankruptcy estate under 11 U.S.C. 541(a)(6) or 541(c)(2). Alternatively, the debtor contends that even if the payments...
OPINION Laura K. Grandy , United States Bankruptcy Judge . This matter is before the Court on Trustee Robert T. Bruegge's ("Trustee's") Application to Compromise the Chapter 7 Debtor's interest in a class action lawsuit and the Debtor's objection thereto. For the reasons discussed below, the Application is denied. FACTS Debtor Alan Presswood ("Debtor") filed a Chapter 7 petition on May 29, 2012 and movant Robert T. Bruegge was appointed Trustee of the bankruptcy estate. At the time...
OPINION LAURA K. GRANDY , Bankruptcy Judge . The debtor filed its First Amended Plan of Reorganization ("the Plan") on October 26, 2015, and the debtor's largest unsecured creditor, Global Traffic Technologies, LLC ("GTT"), objected. A trial on the objections to confirmation was held on March 1, 2016. After hearing the testimony of witnesses and arguments of counsel, the Court took the matter under advisement. For the reasons set forth below, the Court finds that the Plan meets the...
OPINION LAURA K. GRANDY , Bankruptcy Judge . The debtor filed its First Amended Plan of Reorganization ("the Plan") on October 26, 2015, and the debtor's largest unsecured creditor, Global Traffic Technologies, LLC ("GTT"), objected. A trial on the objections to confirmation was held on March 1, 2016. After hearing the testimony of witnesses and arguments of counsel, the Court took the matter under advisement. For the reasons set forth below, the Court finds that the Plan meets the...
OPINION LAURA K. GRANDY Bankruptcy Judge. This matter comes before the Court on the Trustee's objection to the debtor's Schedule C. The issue before the Court is whether a debtor may exempt a rare and valuable bible under the Illinois exemption statute, 735 ILCS 5/12-1001(a). Facts The following facts are undisputed. The debtor is an employee at Stinson Memorial Library in Anna, Illinois. In 2003, the debtor was charged with clearing old and damaged books out of a storeroom at the library....
OPINION WILLIAM V. ALTENBERGER, Bankruptcy Judge. Before the Court is the motion filed by the Debtor, Porco, Inc. (Debtor) and Amy Bouvet (Bouvet) (collectively, the Defendants) to dismiss the two-count adversary complaint filed by the Plaintiff, Quality Meat Products, L.L.C. (Plaintiff). The basic facts as pled by the Plaintiff are as follows. The Debtor was an Illinois Corporation. 1 Bouvet had been the Debtor's primary shareholder and chief operating officer. The Debtor operated its...
OPINION LAURA K. GRANDY, Bankruptcy Judge. Plaintiff/Debtor United Science Industries (USI) filed a five-count Second Amended Complaint which, essentially, seeks to invalidate liens being claimed by defendants Southwest Bank, an M & I Bank (Southwest), EnviroCap, LLC (EnviroCap) and Banterra Bank (Banterra) in certain government reimbursement payments. The plaintiff and each of the defendants moved for summary judgment on the complaint. 1 FACTS Prior to bankruptcy, plaintiff USI was in...
