- Brock, et al. v. Glasser (In re Brock), Case Nos. 12-001 (B.A.P. 10th Cir. January 9, 2014) (unpublished)
- The BAP affirmed the allowance of a claim filed by a creditor of a revocable inter vivos trust settled by Chapter 11 individual Debtors holding that since the assets of the revocable inter vivos trust are ordinarily treated as property of the settlor of that trust, such property became property of the Debtors’ Bankruptcy Estate and was available to satisfy their personal debts. To deny, the trust’s creditors from a recovery from those same assets would be illogical and is precisely why the Debtors’ and the trust’s debts and assets must be treated as one and the same.
- Procedural context:
- The Bankruptcy Court allowed appellee’s claim against the Debtors even though the Debtors were not the borrowers under the loan giving rise to the claim. Debtors appealed and the BAP reviewed de novo.
- Debtors’ trust borrowed funds from appellee that was to be secured by real property owned by Debtors although appellee failed to perfect its interest in the real property prior to the petition date and thus, only had an unsecured claim. Appellee filed a claim against Debtors and the Debtors objected arguing, among other things, that the appellee’s loan was not enforceable against them personally because the repayment obligation to the appellee was owed by the trust only.
- Thurman, Cornish, Mosier (Thurman)
Joseph Hill v. Raquel King
Summarizing by J Newman
3048 in the system
3 Being Processed