Statute/Rule References:
11 U.S.C. § 522(l) -- Objection to Exemption
Fed. R. Bankr. P. 4004(a) -- Time for Filing Objection to Discharge
Key Terms:
Exemptions - Objection
You are here
Opinions
The Western District of Wisconsin offers a database of opinions for the years 1986 to present, listed by year and judge. For a more detailed search, enter a keyword, statute, rule or case number in the search box above.
Opinions are also available on the Government Printing Office website for Appellate, District and Bankruptcy cases. The content of this collection dates back to April 2004, though searchable electronic holdings for some courts may be incomplete for this earlier time period.
For a direct link to the Western Wisconsin Bankruptcy Court on-line opinions, visit this link.
Judge Robert D. Martin
Statute/Rule References:
11 U.S.C. § 523(a)(6) -- Nondischargeability - Willful and Malicious Injury
Key Terms:
Willful and Malicious - Defined
Statute/Rule References:
Fed. R. Bankr. P. 9011 -- Signing and Verification of Papers
Key Terms:
Sanction
Statute/Rule References:
Fed. R. Bankr. P. 9011 -- Signing and Verification of Papers
Key Terms:
Sanctions
Statute/Rule References:
Fed. R. Bankr. P. 9011 -- Signing and Verification of Papers
Key Terms:
Sanctions
Judge Thomas S. Utschig
Case Summary:
Debtors filed adversary proceeding, contending that garnishment payments to creditor within the 90 days preceding bankruptcy constituted a preference under 11 U.S.C. § 547. The “transfer” of the debtor’s wages did not take place until the point at which the debtor earned the wages. Until that time, he had no right to the funds and could not transfer them before that time. As a result, the garnishment of his wages within the 90 days prior to the bankruptcy filing constituted a preference. Citing In re Ballard, 131 B.R. 97 (Bankr. W.D. Wis. 1991).
Key Terms:
Preferences
Case Summary:
Chapter 7 trustee brought motion to have creditor disgorge allegedly improper payments. Court examined stipulations entered into by the debtor while in chapter 11 and concluded that creditor had not acted improperly. Creditor completed construction of motel project, and debtor and certain mortgage holders had opportunity to purchase property. They were unable to do so, and that failure was unrelated to any actions of the creditor.
In a related matter, the bankruptcy court’s denial of the mortgage holders’ motion for an extension of time in which to file an appeal was affirmed by the district court.
Key Terms:
Contract Disputes
Case Summary:
Debtor did not “embezzle” loan proceeds used to purchase truck. Embezzlement under 11 U.S.C. § 523(a)(4) is the fraudulent appropriation of property by a person to whom the property has been entrusted, and creditor must prove that debtor used property for a purpose other than that for which it was intended. Debtor used loan proceeds to purchase truck, as contemplated by the parties. Thereafter, when parties discovered truck was actually stolen property, debtor’s use of the refund to purchase another truck, rather than return the refund to the bank, did not constitute embezzlement because the truck was the debtor’s property, not the creditor’s. The creditor held merely a security interest in the property. Further, there was no injury within the meaning of 11 U.S.C. § 523(a)(6) because the debtor had an honest belief that the bank’s lien no longer existed.
Statue/Rule References:
11 U.S.C. § 523(a)(4) -- Nondischargeability - Embezzlement
11 U.S.C. § 523(a)(6) -- Nondischargeability - Willful and Malicious Injury
Key Terms:
Embezzlement
Willful and Malicious
Case Summary:
Dispute between two creditors over purchase money status of one creditor’s lien on a tractor. Creditor claimed to have perfected its PMSI by mailing the UCC-1 financing statement to the appropriate office for filing. However, there was no record of the financing statement having been filed, or even received by the filing office. Creditor contended that the common law “presumption of receipt” mandated that it be deemed to have filed the financing statement when it was mailed.
Court held that the creditor had to demonstrate actual receipt of the financing statement by the filing office. Although Wis. Stat. § 409.403(1) relieves the creditor of any responsibility for the filing officer’s failure to properly docket the financing statement, the creditor still must prove that the item was actually presented for filing. The “presumption of receipt” is insufficient to do so given the need to prove not only the fact of receipt but the time of filing for priority purposes. The court also rejected the creditor’s argument that the second lienholder’s claim to the tractor should be subordinated under either unjust enrichment or the principles of equitable subordination.
Statue/Rule References:
11 U.S.C. § 510(c) -- Equitable Subordination
Wis Stat. § 409.403(1) -- Security interests - Filing
Key Terms:
Equitable Subordination
Financing Statements -- Perfection
Security Interests -- Time of Filing
Case Summary:
The court denied creditor’s motion for relief from the stay, together with motion to temporarily revoke the debtors’ discharge. Creditor sought to enter a judgment in state court in connection with a tort claim. However, the debtors’ discharge precluded the entry of any judgment against the debtors personally. Further, the court did not have the authority to temporarily revoke the debtors’ discharge. Under the sixty-day period contemplated by Fed. R. Bankr. P. 4004(a) and 4007(c), the court shall “forthwith” grant the debtors’ discharge. Despite creditor’s belief that issuance of discharge was “unfair,” debtors were entitled to discharge in the absence of any objection to discharge or waiver by the debtors.
Statue/Rule References:
Fed. R. Bankr. P. 4004(a) -- Time for Filing Objection to Discharge
Fed. R. Bankr. P. 4007(c) -- Time for Filing Nondischargeability Complaint
Key Terms:
Discharge