MEMORANDUM OF DECISION & ORDER HONORABLE SCOTT W. DALES , Chief United States Bankruptcy Judge . This is the second and most recent bankruptcy proceeding of chapter 7 debtor and defendant Kevin Edward Bridges (the "Defendant") within the last year. His next most recent case — filed under chapter 13 last year — ended in dismissal without a discharge, but not before TIA Corporation (the "Plaintiff") obtained a judgment from this court declaring his debt to the Plaintiff (and related state...
MEMORANDUM OF DECISION & ORDER PRESENT: HONORABLE SCOTT W. DALES , Chief United States Bankruptcy Judge . I. BACKGROUND In a prior ruling, the court announced its intention to avoid, as a constructively fraudulent transfer, the conveyance by chapter 7 debtor, Carol K. Rosich ("Mrs. Rosich"), to herself and her husband, which created a tenancy by the entireties in a residence (the "Residence") that Ms. Rosich later claimed as exempt. Having successfully avoided the transfer, the...
MEMORANDUM OF DECISION & ORDER Scott W. Dales , United States Bankruptcy Judge . Michigan State University Federal Credit Union ("MSUFCU") filed a motion for relief from the automatic stay (the "Motion," ECF No. 18) seeking permission to setoff funds in three certificates of deposit, each titled in the name of chapter 13 debtor Julie L. Kunkel and her minor children (the "Children"). Ms. Kunkel and her co-debtor husband (the "Debtors"), as well as chapter 13 trustee Barbara P. Foley (the "...
AMENDED 1 MEMORANDUM OF DECISION & ORDER PRESENT: HONORABLE SCOTT W. DALES , Chief United States Bankruptcy Judge . I. INTRODUCTION Depending on one's point of view, this proceeding is either an untimely challenge to exemptions, or a timely effort to avoid a fraudulent transfer, or perhaps both. At the heart of the dispute is a transfer of real property in Hesperia, Michigan (the "Property"), by John and Carol Rosich to themselves as tenants by the entireties, from a revocable trust...
MEMORANDUM OF DECISION & ORDER PRESENT: HONORABLE SCOTT W. DALES , Chief United States Bankruptcy Judge . I. INTRODUCTION The Young Mens Christian Association of Marquette County ("YMCA") seeks approval of its selection of counsel to represent it as chapter 11 debtor-in-possession, but the United States Trustee filed an objection raising two main grounds for disqualification. First, he argues that the YMCA's proposed counsel is not "disinterested" and therefore ineligible for appointment...
ORDER SCOTT W. DALES , United States Bankruptcy Judge . The court has reviewed the Debtors' Motion to Defer Entry of Discharge, their third request for this relief (the "Third Motion," ECF No. 51). Given the strong policy favoring a prompt fresh start, and the relationship between the entry of the discharge and other provisions of the Bankruptcy Code, 1 the court reads Fed. R. Bankr. P. 4004(c)(2) as authorizing only two deferral motions: the first for thirty days, and the second "to a...
MEMORANDUM OF DECISION AND ORDER PRESENT: HONORABLE SCOTT W. DALES , Chief United States Bankruptcy Judge . The court held a hearing on December 14, 2016, in Grand Rapids, Michigan, to consider the motion of plaintiff Jeff A. Moyer, chapter 7 trustee (the "Trustee") to amend his complaint against defendants John and Carol Rosich (the "Defendants"). See Plaintiffs Motion for Leave to File First Amended Complaint (the "Motion," ECF No. 16). The Defendants oppose the Motion. The court...
MEMORANDUM OF DECISION AND ORDER PRESENT: HONORABLE SCOTT W. DALES , Chief United States Bankruptcy Judge . I. INTRODUCTION Robert A. Stariha, Esq., drafted the warranty deed at the center of this adversary proceeding, helping his clients effect the real estate transfer that chapter 7 trustee Jeff A. Moyer (the "Trustee") now seeks to avoid as a fraudulent conveyance. To assist in proving his case, the Trustee moves to compel Mr. Stariha to testify (and produce documents) about his...
OPINION AFTER TRIAL Scott W. Dales , United States Bankruptcy Judge . I. INTRODUCTION By the time of trial in this preference dispute, the only issue for decision was whether the $6,000.00 payment by chapter 7 debtor Carol K. Rosich to her son, Christopher Rosich, representing proceeds of a vehicle in which he held a perfected security interest, qualifies as a contemporaneous exchange for new value within the meaning of 11 U.S.C. 547(c)(1). For the following reasons, the court finds...
FINDINGS OF FACT AND CONCLUSIONS OF LAW AFTER TRIAL Scott W. Dales , United States Bankruptcy Judge . I. BACKGROUND At the center of this dispute between an unhappy creditor and a bankruptcy trustee lies a now-defunct manufacturing facility in Benton Harbor, Michigan (the "Property"). The Property, commonly known as 489 North Shore Drive, Benton Harbor, Michigan, served as the factory, warehouse, and offices of Modern Plastics Corporation (the "Debtor"), as well as the collateral for a...
MEMORANDUM OF DECISION AND ORDER PRESENT: HONORABLE SCOTT W. DALES , Chief United States Bankruptcy Judge . I. INTRODUCTION On July 24, 2015, the court entered two decisions in this adversary proceeding, in each instance ruling against New Products Corporation (the "Plaintiff" or "New Products"). On August 6, 2015, New Products timely moved for reconsideration of the decisions by filing separate motions. The first motion seeks reconsideration of the court's decision 1 substantially...
MEMORANDUM OF DECISION AND ORDER PRESENT: HONORABLE SCOTT W. DALES , Chief United States Bankruptcy Judge . I. INTRODUCTION On July 22, 2015, in Kalamazoo, Michigan, the court heard oral argument on the Defendants' Second Motion for Summary Judgment (the "Motion," DN 118), filed by Thomas R. Tibble, individually and as former trustee of the chapter 7 estate of Modern Plastics Corp. (the "Debtor"), and Mr. Tibble's surety, the Federal Insurance Company. The Motion is premised on what...
MEMORANDUM DECISION REGARDING MOTION TO SELL SUBSTANTIALLY ALL ASSETS OF DEBTORS John T. Gregg , United States Bankruptcy Judge . This matter comes before the court in connection with a motion to sell substantially all of the Debtors' assets and assume and assign certain executory contracts and unexpired leases pursuant to sections 363 and 365 of the Bankruptcy Code [Dkt. No. 487] (the "Sale Motion"), filed by Family Christian, LLC (the "Operating Debtor"), Family Christian Holding, LLC...
MEMORANDUM DECISION REGARDING MOTION TO DISMISS UNDER FED. R. CIV. P. 12(b)(6) John T. Gregg , United States Bankruptcy Judge . This matter is before the court on a Motion to Dismiss and brief in support thereof [Adv. Dkt. No. 15] (collectively, the "Motion to Dismiss") filed by LVNV Funding, LLC ("LVNV") and Resurgent Capital Services, L.P. ("Resurgent," and together with LVNV, the Defendants"), defendants in the above-captioned adversary proceeding. 1 The issue before the court is...
MEMORANDUM OF DECISION AND ORDER HONORABLE SCOTT W. DALES , Chief United States Bankruptcy Judge . I. INTRODUCTION The country's relationship with marijuana is changing, slowly, and one person's pusher is another's caregiver. Jerry L. Johnson (the "Debtor"), a licensed "caregiver" and marijuana grower under the Michigan Medical Marihuana Act 1 filed for relief under chapter 13 after falling behind on his house payments, his utility payments, and at least one payment on his truck. His...
MEMORANDUM DECISION REGARDING MOTION OF OFFICIAL COMMITTEE OF UNSECURED CREDITORS TO INTERVENE John T. Gregg , United States Bankruptcy Judge . This matter comes before the court in connection with a motion to intervene [Adv. Dkt. No. 30] (the "Motion to Intervene") filed by the Official Committee of Unsecured Creditors (the "Committee") in the above-captioned adversary proceeding. The Committee seeks to intervene as a defendant to determine, among other things, whether certain goods...
OPINION AFTER TRIAL SCOTT W. DALES, Chief Judge. I. INTRODUCTION Chapter 7 debtor Nicolas Warner (the "Plaintiff" or "Dr. Warner") sued his student loan lenders, the United States Department of Education (the "Department"), National Collegiate Student Loan Trust 2003-1, 2005-3, 2004-2, 2006-2, 2006-3, National Collegiate Master Student Loan Trust-1 (collectively "NCT"), and Bank of America (the "Bank"), to obtain a judgment declaring that approximately $432,000.00 in student loans should...
OPINION AND ORDER SCOTT W. DALES, Chief Judge. Darcy Hager (the "Debtor") filed a chapter 7 bankruptcy petition with this court on December 23, 2009 when, like many debtors, she was still embroiled in litigation with a former spouse. Attorney Lawrence Newmeyer was representing the Debtor in connection with the family court matter and had a claim against her for prepetition legal services. During the bankruptcy proceeding he continued to represent her and she incurred legal fees for which she...
OPINION AND ORDER AFTER TRIAL SCOTT W. DALES, Chief Judge. I. INTRODUCTION Marcia R. Meoli, as chapter 7 trustee for the bankruptcy estate of Shawn C. Allen (the "Debtor"), sued the Debtor's former wife, Tamara Cooper, to avoid and recover specific transfers the Debtor made to Ms. Cooper pursuant to a judgment of divorce (the "JOD"). Ms. Meoli (the "Trustee" or "Plaintiff) seeks avoidance of the transfers under state and federal fraudulent conveyance laws. The following constitutes the...
OPINION AND ORDER AFTER TRIAL SCOTT W. DALES, Bankruptcy Judge. I. INTRODUCTION Matthew P. Vestal, the pro se defendant in this adversary proceeding (the "Defendant"), filed a voluntary petition for bankruptcy relief under chapter 7 on June 4, 2012. On October 1, 2012, Robert Shears (the "Plaintiff"), timely filed an adversary proceeding objecting to the discharge of his claim against the Defendant for an alleged violation of the Michigan Building Contract Fund Act ("MBCFA"), M.C.L....
