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Martinez v. Garcia Auto Sales LLC - Partial Summary Judgment Granted

The United States Bankruptcy Court for the Eastern District of Kentucky granted partial summary judgment in favor of debtor Kathe Mercedes Martinez against Garcia Auto Sales LLC on her claims arising from repossession and disposition of a 2021 Toyota RAV4. The defendant failed to file a timely response to the motion, which was filed February 12, 2026, with a response deadline of February 26, 2026. The court found the defendant violated the automatic stay by repossessing the vehicle after the Chapter 13 petition was filed on July 23, 2025, and subsequently selling it to a third party. The vehicle was purchased for $24,095.24 with a $5,500 down payment, and the lien was recorded 52 days after the sale. Trial on remaining claims is set for March 26, 2026.

Creditor Motion to Extend Discharge Objection Deadline Denied

The United States Bankruptcy Court for the Eastern District of Kentucky denied Creditor Michael C. Andrews, M.D.'s Motion to Extend Time to Object to Discharge in the Chapter 7 case of debtor Kendall E. Hansen (Case No. 25-20416). The creditor, who holds a $500,000 claim arising from a defamation judgment, filed the motion after the August 11, 2025 objection deadline had already expired, seeking to introduce evidence that the debtor sold equipment in December 2023 in alleged violation of a state court order. The court applied Rule 4004(b)(2) and found the creditor failed to exercise diligence in conducting discovery before the deadline expired, noting that other creditors took active steps such as Rule 2004 examinations while the creditor did nothing. The motion is denied.