In re: Cristina Maria Naswari, Max Williams v. Lendbuzz Floorplan, LLC

United States Bankruptcy Court, S.D. Texas·Decided July 27, 2026·No. 25-03052·Unknown

Opinion

IN THE UNITED STATES BANKRUPTCY COURT July 27, 2026 FOR THE SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, Clerk HOUSTON DIVISION

IN RE: § § CASE NO: 24-35380 CRISTINA MARIA NASWARI, MAX § WILLIAMS, § CHAPTER 7 § Debtors. § § LENDBUZZ FLOORPLAN, LLC, § § Plaintiff, § § VS. § ADVERSARY NO. 25-3052 § CRISTINA NASWARI, § § Defendant. §

MEMORANDUM OPINION

Lendbuzz Floorplan, LLC financed Auto Expo LLC’s purchase of used vehicles. Cristina Maria Naswari guaranteed Auto Expo LLC’s obligations to Lendbuzz Floorplan, LLC. Through this adversary proceeding, Lendbuzz Floorplan, LLC seeks a determination that the debt arising from eight (8) vehicles sold out of trust constitutes a willful and malicious injury to Lendbuzz Floorplan, LLC and is non-dischargeable pursuant to 11 U.S.C. § 523(a)(6). On June 25, 2026, the Court conducted a one-day trial and, for the reasons stated herein, finds that Lendbuzz Floorplan, LLC failed to meet its burden of proving the existence of a debt owed to it by Cristina Maria Naswari and therefore, Lendbuzz Floorplan, LLC’s nondischargeability claim under 11 U.S.C. § 523(a)(6) fails as a matter of law. I. FINDINGS OF FACT This Court makes the following findings of fact and conclusions of law pursuant to Federal Rule of Civil Procedure (“Rule”) 52, which is made applicable to adversary proceedings pursuant to Federal Rule of Bankruptcy Procedure (“Bankruptcy Rule”) 7052. To the extent that any finding of fact constitutes a conclusion of law, it is adopted as such. To the extent that any conclusion of law

constitutes a finding of fact, it is adopted as such. This Court made certain oral findings and conclusions on the record. This Memorandum Opinion supplements those findings and conclusions. If there is an inconsistency, this Memorandum Opinion controls. A. Background 1. On November 15, 2024 (the “Petition Date”), Cristina Maria Naswari (“Debtor” or “Defendant”) filed for bankruptcy protection under chapter 7 of the Bankruptcy Code,1 initiating the bankruptcy case. Bankr. ECF No. 1.2

2. On February 14, 2025, Lendbuzz Floorplan, LLC (“Plaintiff” or “Lendbuzz”) timely filed the instant adversary complaint (the “Complaint”). ECF No. 1.

3. On March 17, 2025, Defendant filed her answer to the Complaint (“Answer”). ECF No. 5.

4. On October 3, 2025, Plaintiff filed its Motion for Summary Judgment, ECF No. 14, which the Court denied on October 20, 2025. ECF No. 16.

5. On November 21, 2025, Plaintiff and Defendant filed their Joint Pretrial Statement. ECF No. 27.

6. On June 25, 2026, the Court held a one-day trial and now issues the instant Memorandum Opinion.

1 Any reference to “Code” or “Bankruptcy Code” is a reference to the United States Bankruptcy Code, 11 U.S.C., or any section (i.e.§) thereof refers to the corresponding section in 11 U.S.C. 2 “Bankr. ECF” refers to docket entries made in the Debtor’s bankruptcy case, No. 24-35380. Entries made in Plaintiff’s Case number 25-3052 shall take the format of ECF No. __. II. CONCLUSIONS OF LAW A. Jurisdiction and Venue This Court holds jurisdiction pursuant to 28 U.S.C. § 1334 and exercises its jurisdiction in accordance with Southern District of Texas General Order 2012-6. In re: Order of Reference to Bankruptcy Judges, Gen. Order 2012-6 (S.D. Tex. May 24, 2012). Section 157 allows a district court to “refer” all bankruptcy and related cases to the bankruptcy court, wherein the latter court will appropriately preside over the matter. 28 U.S.C. § 157(a); see also In re: Order of Reference to Bankruptcy Judges, Gen. Order 2012-6 (S.D. Tex. May 24, 2012). This court determines that pursuant to 28 U.S.C. § 157(b)(2)(I) and (O), this proceeding contains core matters, as it primarily

involves proceedings concerning dischargeability of particular debts. See 28 U.S.C. § 157(b)(2)(I) & (O). This proceeding is also core under the general “catch-all” language because such a suit is the type of proceeding that can only arise in the context of a bankruptcy case. See Southmark Corp. v. Coopers & Lybrand (In re Southmark Corp.), 163 F.3d 925, 930 (5th Cir. 1999) (“[A] proceeding is core under § 157 if it invokes a substantive right provided by title 11 or if it is a proceeding that, by its nature, could arise only in the context of a bankruptcy case.”) (quoting Wood v. Wood (In re Wood), 825 F.2d 90, 97 (5th Cir. 1987)). This Court may only hear a case in which venue is proper. 28 U.S.C. § 1408. 28 U.S.C. § 1409(a) provides that “a proceeding arising under title 11 or arising in or related to a case under

title 11 may be commenced in the district court in which such case is pending.” Debtor’s bankruptcy case is pending in this Court and therefore, venue of this proceeding is proper. B. Constitutional Authority to Enter a Final Order While bankruptcy judges can issue final orders and judgments for core proceedings, absent consent, they can only submit proposed findings of fact and conclusions of law to the district court on non-core matters. See 28 U.S.C. §§ 157(b)(1), (c)(1); see also Stern v. Marshall, 564 U.S. 462, 480 (2011); Wellness Int’l Network, Ltd. v. Sharif, 575 U.S. 665, 671 (2015). The determination as to the dischargeability of particular debts pending before this Court is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(I). Accordingly, this Court concludes that the narrow limitation imposed by Stern does not prohibit this Court from entering a final order here. See, e.g., Badami

v. Sears (In re AFY, Inc.), 461 B.R. 541, 547–48 (B.A.P. 8th Cir. 2012) (“Unless and until the Supreme Court visits other provisions of Section 157(b)(2), we take the Supreme Court at its word and hold that the balance of the authority granted to bankruptcy judges by Congress in 28 U.S.C. § 157(b)(2) is constitutional.”); see also Tanguy v. West (In re Davis), 538 F. App’x 440, 443 (5th Cir. 2013) (“[W]hile it is true that Stern invalidated 28 U.S.C. § 157(b)(2)(C) with respect to ‘counterclaims by the estate against persons filing claims against the estate,’ Stern expressly provides that its limited holding applies only in that ‘one isolated respect’ .... We decline to extend Stern’s limited holding herein.”) (citing Stern, 564 U.S. at 475, 503).

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In re: Cristina Maria Naswari, Max Williams v. Lendbuzz Floorplan, LLC, (Tex. 2026).

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