In this chapter 13 case, the debtors filed a motion under 11 U.S.C. § 522(f) to avoid a “clean-up lien” obtained by the City of Fort Smith pursuant to Arkansas Code Annotated section 14-54-903 for costs the City incurred in connection with removing a dead tree from the debtors’ property after the debtors failed to remove the tree within seven days of receiving notice from the City that the tree constituted an ordinance violation. Because the Court found that the City held a statutory lien that was not subject to avoidance under § 522(f), the Court denied the debtors’ motion to avoid lien.
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Opinions
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Judge Bianca M. Rucker
The Court found that the creditors willfully violated the automatic stay when they sought and obtained a body attachment order in state court. The Court awarded actual damages for emotional distress and, because the creditors’ actions were intentional and egregious, the Court also awarded punitive damages.
The Court granted in part and denied in part the creditor’s motion for summary judgment, finding that the doctrine of collateral estoppel precluded further litigation of the debtor’s liability under § 523(a)(2)(A) based on a default judgment for fraud in the inducement entered against the debtor in Florida. The Court also found that the doctrine of collateral estoppel precluded further litigation of the debtor’s liability under § 523(a)(6) for certain attorney fees and costs awarded by the Florida court to the creditor’s predecessor in interest as a result of the debtor’s fraudulent conduct during discovery. The Court found both debts nondischargeable and reserved the determination of the amount of the debts for trial.
In this chapter 11 case, the Court found that all of the debtor’s interests in the subject property were extinguished prior to the debtor’s bankruptcy filing based upon the expiration of the ten-day
redemption period in a state court foreclosure decree. As a result, the Court found that the property was not property of the estate and granted the creditor’s motion for relief from the automatic stay.
In this short opinion, the Court dismissed an involuntary chapter 7 case because the petitioning creditor and the alleged debtor were the same individual. The Court found that 11 U.S.C. § 303 does not permit one person to act in these two capacities and an involuntary petition may not be filed voluntarily.
The Court found that the debtor’s debt to Simmons Bank was not incurred through false pretenses or false representations under § 523(a)(2)(A) and was not the result of a willful and malicious injury under § 523(a)(6). As a result, the Court held that the debt in question was dischargeable.
Judge Richard D. Taylor
Although attorneys are responsible for flawed research generated by artificial intelligence, sanctions may be mitigated under the circumstances.
A chapter 13 debtor’s liability as a guarantor on an unmatured, not defaulted debt does not count against them as a noncontingent debt for purposes of eligibility.
A chapter 13 trustee may, but is not obligated, require the entry of an order awarding administrative fees prior to distributing retained funds to debtor’s counsel.