OpinionsSection 522(f)(3)(B) of title 11 provides that if a debtor elects state-law exemptions for implements and tools of the trade under a law of a state that "prohibits avoidance of a consensual lien on property otherwise eligible to be claimed as exempt", then the debtor may not avoid the lien "to the extent the value of such implements . . . [and] tools of the trade . . . exceeds $6,425." Wisconsin law "prohibits avoidance of a consensual lien on property". A debtor electing Wisconsin exemptions can only avoid a lien on implements and tools of the trade up to $6,425. In re Groth, Case No. 17-30264 (July 2018) -- Chief Judge G.M. Halfenger The trustee objected to confirmation because the debtor was not providing all of her projected disposable monthly income to unsecured creditors. The trustee argued that the debtor should not be allowed to deduct her homeowner association dues as a special circumstance on her means test. The court agreed and concluded that, under the facts of this case, the debtor's obligation to pay her homeowner association dues was not a special circumstance for purposes of 11 U.S.C. section 707(b)(2)(B)(i). In re Ryan, Case No. 18-20366 (July 2018) -- Chief Judge G.M. Halfenger The court overruled the debtors' claim objections because (1) the debtors did not serve the claimant, Waterstone Bank, by certified mail as required by Fed. R. Bankr. P. 3007(a)(2)(A)(ii) and 7004(h); and (2) the claim objections did not comply with Local Rule 3007(b) because they were not supported by an affidavit or declaration stating facts in support of the objection made by individuals with personal knowledge. The debtors attempted to support their claim objections with an affidavit from their bankruptcy attorney. The debtors' bankruptcy attorney's affidavit did not establish that the bankruptcy attorney had personal knowledge of the relevant facts and accordingly the affidavit was not sufficient to support the claim objections. In re Ali, Case No. 18-25548 (July 2018) -- Chief Judge G.M. Halfenger The debtor filed an application to waive the filing fee. The debtor filed a detailed affidavit showing he met 28 U.S.C. §1930(f)(1)'s waiver requirements, including stating facts showing that he faced special circumstances that make a discharge extraordinarily beneficial. The court waived the debtor's filing fee and commended debtor's pro bono counsel. In re Patrick and Angela Sabec, Case No. 17-23264 (January 2018) -- Chief Judge G.M. Halfenger The chapter 13 debtors filed a motion to limit notice of their request to amend their unconfirmed chapter 13 plan contending that the amended plan did not adversely affect any other parties in interest. The court denied the motion. The court's order explains that Interim Local Rule 3015(c)(3) requires debtors to serve all plan amendments on all creditors in order to reduce substantially the administrative cost in determining whether the debtor properly served the plan. The order states that the court "will reserve orders limiting notice to those rare instances in which some final amendment that likely has no detrimental effect on creditors is needed to achieve confirmation." Adv. Proc. No. 17-2187, George v. Novoselsky (October 2017) -- Chief Judge G.M. Halfenger The defendant filed a motion for recusal, abstention, dismissal and a request for trial by jury. The court denied the requests for recusal, dismissal and abstention. The court struck the defendant’s jury demand because the plaintiff’s claim under 11 U.S.C. sec. 549 is not one for which the Seventh Amendment to the U.S. Constitution preserves the right to a jury trial. In re Bethe, Case No. 11-25388 (September 2017) -- Chief Judge G.M. Halfenger Section 1328(a) of title 11 provides that the court shall grant a debtor a discharge when, among other requirements, the debtor has completed “all payments under the plan”. Direct-pay maintenance payments on long-term debt provided for in a chapter 13 plan are “payments under the plan” for purposes of section 1328(a). Debtors who fail to make such payments are not entitled to a discharge. In re Brian and Virginia Kropp, Case No. 16-29342 (June 2017) -- Chief Judge G.M. Halfenger The court denied the debtors' third request to delay the grant of the discharge because Federal Rule of Bankruptcy Procedure 4004(c)(2) does not authorize a debtor to obtain a delay of the discharge after an initial 30-day period of deferment expiries. In re Jamiela Yvonne Flournoy, Case No. 16-21984 (March 2017) -- Chief Judge G.M. Halfenger Credit Acceptance Corp., a creditor with a security interest in the debtor's vehicle, objected to confirmation because the debtor's plan proposed to eliminate its lien on a non-filing co-debtor's interest in the collateral. The court concluded that the creditor's right to collect the debt from the non-filing co-debtor's interest in the vehicle could not be eliminated under 11 U.S.C. sec. 1322(b)(2). Michael A. Gral v. Estate of Margolis, Adv. Proc. No. 16-2193 (March 2017) -- Chief Judge G.M. Halfenger The court concluded that property transferred from a revocable trust to the debtor's non-filing spouse constituted individual property of the non-filing spouse and not property of the debtor's bankruptcy estate. |