Court denied Bank's motion to dismiss Chapter 11 case finding that the Debtors' plan was filed in good faith, and the Debtors' case is not otherwise subject to dismissal under 11 U.S.C. § 1112(b). Court further conditionally confirmed Chapter 11 plan overruling creditors' objections to feasibility, and finding that the proposed post-confirmation interest rate and length of payout period with respect to bank creditor's claim was fair and equitable under 11 U.S.C. § 1129(b)(2). However, Court held that Debtors must modify their plan to pay the Bank, an oversecured creditor, interest on its claim at the contract rate from the date of filing through confirmation. Finally, the Court found that Debtors' plan to pay the Farm Services Agency (FSA) $4,000 in lieu of its Junior Lien in addition to the other payments and security provided to FSA was fair and equitable under the "indubitable equivalence" test of 11 U.S.C. § 1129(b)(2)(A)(iii). In re Bryant, 439 B.R.724 (Bankr. E.D. Ark. 2010).
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Opinions
Notice: Not all of the Judges Opinions will be made available on this site. Individual Judges have the option of specifying that all, some or none of their opinions be posted.
Audrey R. Evans
Default judgment denied because a default had not been entered, an answer had been filed, the Debtor provided an acceptable reason for the delay in filing the answer, and an answer filed five days late constituted only a marginal failure to comply with the deadline for filing an answer. Not selected for publication
Judge Richard D. Taylor
The debtor's objection to claim based upon breach of contract is sustained in part. The debtor's claims for violation of the automatic stay, turnover, and Arkansas Deceptive Trade Practices Act are denied.
Judge Ben T. Barry
The court denied the plaintiffs’ complaint to determine the dischargeability of a debt resulting from a state court judgment against the debtors as trustees of their respective living trusts. Because the court could not find that the debtors were individually liable on the debt, there was no debt as contemplated under § 523(a).
The Court granted the creditor’s motion for relief from stay as to real property located in Missouri. Despite an incorrect legal description listed in the deed of trust, the creditor had a secured lien on the property. In addition, the trustee did not qualify as a bona fide purchaser according to Missouri law, and therefore could not avoid the creditor’s secured lien pursuant to 11 U.S.C. § 544(a)(3).
The Court granted the debtors' motion to refund the debtors' income tax refund, which the chapter 13 trustee held pre-confirmation. In chapter 13 cases, prior to confirmation, property of the estate remains in possession of the debtors. The Court overruled the trustee's objection to confirmation, in part, because the debtor's disposable income could not be determined from the record before the Court.
Writ of garnishment and resulting execution lien was a preferential transfer that could be avoided under 11 U.S.C. § 547. In the Fayetteville Division of the Western District of Arkansas, if a debtor is insolvent and the transfer diminishes the debtor’s estate, as a matter of law, any distribution to an otherwise unsecured creditor would result in the creditor receiving more than it would in a chapter 7 liquidation had the transfer not occurred.
Court denies creditor's motion for relief from stay for lack of adequate protection payments pre- and post-confirmation. Pre-confirmation, the debtors made the payments required by 11 U.S.C. 1326, as amended by General Order 32. Post-confirmation, the debtors made payments pursuant to their confirmed plan.
James G. Mixon
The Court held that a debt for legal fees owed to the attorney of the debtor's former spouse were in the nature of support and, therefore, entitled to priority treatment in the Chapter 13 plan, even though attorneys are not payees expressly named in the statute that requires priority treatment for support debt.
The Debtor, Vic Richmond, is liable for the debts incurred by JSR & Company because of fraud. Jill Richmond is liable for the debts of JSR & Company because she guaranteed JSR & Company’s note. Vic Richmond is liable for the debts incurred by Richmond & Company because of fraud. The discharge of the Debtors, Vic Richmond and Jill Richmond, is denied pursuant to 11 U.S.C. § 727(a)(4)(A) and 11 U.S.C. § 727(a)(5). Vic Richmond’s debts to the Bank are excepted from discharge pursuant to 11 U.S.C. § 523(a)(2)(A) and 11 U.S.C. § 523(a)(6). The discharge of Vic Richmond is also denied pursuant to 11 U.S.C. § 727(a)(3).