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.
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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.
James G. Mixon
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).
The Court required the Debtor-in-possession to assume or reject three commercial trucking leases. The transactions between the parties were true leases and not disguised sales despite a "TRAC" clause requiring sale of the tractors at the end of the lease term, with the Debtor-in-possession obligated to pay or be paid the difference between the residual value and the sale price. Debtor-in-possession had no option to purchase under the lease and parol evidence of such an option would not be considered.
Judge Ben T. Barry
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.
The court overruled the chapter 7 trustee's objection to the debtor's homestead exemption where the court found that the debtor qualified as"head of a family" under Arkansas law based on the debtor's relationship with each of her brothers.
Judge Richard D. Taylor
Court denies debtor's discharge based on transfer of assets with intent to hinder, delay, and defraud creditors and false schedules.
The doctrine of collateral estoppel precludes the court from hearing issues previously decided by a state court and results in the nondischargeability of a debt pursuant to 11 U.S.C. § 523(a)(4).
Audrey R. Evans
Court was not collaterally estopped from finding that Debtor lacked intent required for a determination of nondischargeability pursuant to 11 U.S.C. § 523(a)(2)(A), where state court default judgment rested on the two independent grounds of (1) default and (2) fraud. In such circumstances, collateral estoppel applies only to findings that are essential to the judgment under both theories of liability that are the basis of the judgment. Fraudulent intent was not an element of default and therefore not essential to the judgment. After an evidentiary hearing, the Court found that Debtor lacked fraudulent intent and the debt was therefore dischargeable. First Security Bank v. Hudson (In re Hudson), 428 B.R. 866 (Bankr. E.D. Ark. 2010).
On creditor's complaint, the Court denied Debtors' discharge pursuant to 11 U.S.C. § 727(a)(4)(A) (false oath). Debtors filed petition and amended petition that failed to disclose numerous transfers listed in the complaint. When making eve-of-trial amendments disclosing the transfers, Debtors still failed to disclose a $33,000 race car, which the Court found Debtors both owned and controlled. Additional inaccuracies in the petition and testimony corroborated creditor's claim that Debtors knowingly and fraudulently made false oaths despite their contention that the mistakes on their original Petition and First Amended Petition were simply innocent omissions and errors. Watson v. Andrews (In re Andrews),428 B.R.855 (Bankr. E.D. Ark. 2010).