US Bankruptcy Court DKS Docket Feed

Toray Plastics Dismissal — $232k Preference Claim Rejected for Lack of Factual Specificity

The United States Bankruptcy Court for the District of Kansas granted Toray Plastics (America), Inc.'s motion to dismiss an adversary proceeding brought by Sharon Stolte, Liquidating Agent of Continental American Corporation's Chapter 11 liquidating trust, which sought to recover $232,252.31 in alleged prepetition preference transfers under 11 U.S.C. §§ 547(b), 548, 550, and 502. The court held that the amended complaint failed to plead sufficient factual matter and merely recited statutory elements without addressing the factual basis supporting those elements, making the claims implausible on their face. The complaint was dismissed without prejudice.

In re Gary L. Niermeier: Chapter 12 Plan Modification Granted for Secured Claim Extension

The United States Bankruptcy Court for the District of Kansas partially granted Gary L. Niermeier's motion to modify his confirmed Chapter 12 plan, allowing the remaining balance owed to secured creditor First State Bank to be repaid over ten years in semi-annual payments rather than the original seven-year annual payment schedule. The court rejected the Bank's objection under 11 U.S.C. § 1229(c), finding that the five-year limitation on payment extensions does not apply to secured claims under Chapter 12. The ruling permits the modification despite the Debtor missing the fourth annual payment due February 15, 2025, which prompted both the modification motion and the Bank's motion for relief from stay.

Kansas Bankruptcy Court Denies Automatic Stay Violation Claim Against Revenue Department

The United States Bankruptcy Court for the District of Kansas denied debtor Ryan Ray Lamb's Motion for Order to Show Cause, ruling that the Kansas Department of Revenue's alleged failure to reinstate his driver's license did not violate the 11 U.S.C. § 362 automatic stay. The Court determined that mere failures to act constitute passive conduct, not affirmative violations of the stay, even if the underlying obligation to reinstate existed. The debtor's license has since been reinstated following completion of DUI reinstatement fees and retesting requirements.