Statute/Rule References:
11 U.S.C. § 547 -- Preferences
11 U.S.C. § 550 -- Initial Transferee
Key Terms:
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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:
27 U.S.C. § 6323 -- Lien priority
Key Terms:
Taxes - Liens
Judge Thomas S. Utschig
Case Summary:
Creditors of chapter 11 debtor contended that they were entitled to the revenues generated by the debtor’s use of certain plastic molds. These revenues were generated by the debtor prior to the petition date, but were in the debtor’s possession when the case was filed. The creditors contended that they were entitled to the funds because the debtor did not own the molds. Given the absence of any trust relationship between the parties, however, and the extraordinarily broad definition of “property of the estate” under 11 U.S.C. § 541, the court concluded that the debtor held legal and equitable title to the funds when the bankruptcy was filed. Accordingly, the creditor’s adversary proceeding was dismissed.
Statue/Rule References:
11 U.S.C. § 541 -- Property of the Estate
Key Terms:
Property of the Estate
Case Summary:
In wife’s action to have certain debts declared nondischargeable under 11 U.S.C. § 523(a)(5), the court determined that a portion of the debts which the debtor was to have indemnified his former spouse from constituted obligations “actually in the nature of” alimony, maintenance or support. The issue of dischargeability under § 523(a)(5) is a matter of federal law, not state law. The court found that it was not possible to consider the debtor’s present financial condition or the changes in circumstance of both parties since the time of the divorce. The purpose of the section was to look at whether the obligation was intended as support at the time of the divorce. As a result, the court found certain obligations to have been contemplated as support, and others, including a debt to the wife’s mother, to have been intended as property division.
Statue/Rule References:
11 U.S.C. § 523(a)(5) -- Nondischargeability - Divorce Decrees
Key Terms:
Divorce Decrees -- Maintenance or Property Division
In re Lyrek, Case No. 94-11572-12 and 94-11573-12 (10/31/1994) -- Judge Thomas S. Utschig 10/31/1994
Case Summary:
Bank objected to debtors’ treatment of it in a chapter 12 plan on the basis that it held no “claim” against the debtors. The debtors were the assignees of a parcel of real property on which the bank had a mortgage. The bank contended that since it held no claim against the debtors (its only claim being against the prior owner of the property), it was not a “creditor” within the meaning of the bankruptcy code and could not be subjected to a reorganization plan.
Court held that the debtors did hold rights in the property when they filed bankruptcy. As a result, the purported lack of a “debtor-creditor” relationship was not relevant. Given the Supreme Court’s decision in Johnson v. Home State Bank, 501 U.S. 78 (1991), in which the Court held that the debtor’s lack of personal liability upon a mortgage debt did not preclude the reorganization of that debt, the mere fact that the Lyreks were not personally obligated to the bank also did not preclude reorganization of the mortgage debt in this case. A “claim” is a “right to payment,” and the creditor had a right to payment in the form of a right to the proceeds of the sale of the debtors’ property. See 11 U.S.C. § 101(4)(A).
Statute/Rule References:
11 U.S.C. § 101(4)(A) -- Definition of Claim
Key Terms:
Claims -- Definition
Case Summary:
Trustee objected to debtor’s voluntary dismissal of case. Court concluded that under 11 U.S.C. § 1208, the court “shall” dismiss a case upon the debtor’s request. The only basis for delaying dismissal would be an allegation of fraud on the debtor’s part, which was not raised by the trustee. A chapter 12 debtor has a right to the immediate dismissal of the case, without notice or a hearing, unless there is evidence that the debtor engaged in fraud which would render the dismissal unjust.
Statue/Rule References:
11 U.S.C. § 349 -- Dismissal
Key Terms:
Dismissal
Judicial Liens
Satisfaction of Judgment
Case Summary:
Amounts sought by bank for “residual value” of leased equipment were not provided for in lease agreement. The bank contended that it was entitled to not only the rents “lost” as a result of the debtor’s failure to comply with the lease, but also an additional amount which constituted the expected value of the items at the end of the lease term. As the contract did not specify that such damages were to be awarded in the event of default, court would construe the agreement against its drafter (the bank’s predecessor). Accordingly, the objections to the bank’s proof of claim were sustained.
Key Terms:
Contract Disputes