Hujazi v. Wirum (In re North Oxford Bright Horizons Group, LLC)

Citation:
Hujazi v. Wirum (In re North Oxford Bright Horizons Group, LLC), BAP No. NC-14-1030-TaDKi (B.A.P. 9th Cir. May 22, 2015)
Tag(s):
Ruling:
AFFIRMING the bankruptcy court, the Bankruptcy Appellate Panel of the Ninth Circuit held that (1) debtor's affiliate was a "person aggrieved" and therefore had standing to appeal from the final decree discharging the chapter 7 trustee and closing the chapter 7 case and (2) the bankruptcy court did not err in entering the final decree just four days after the chapter 7 trustee filed her final account and distribution report. The panel noted that Fed. R. Bankr. P. 5009(a) does not require a 30-day opportunity for objection; it simply provides a conclusive evidentiary presumption that the chapter 7 estate is fully administered in the absence of an objection by the United States Trustee or any other party in interest within 30 days of a trustee's filing of a final account. Once a case is fully administered, the bankruptcy court is required to close the case. 11 U.S.C. § 350(a).
Procedural context:
Debtor's affiliate appealed from the bankruptcy court's final decree discharging the chapter 7 trustee and closing the chapter 7 case. Debtor's affiliate argued that entry of the final decree was premature, as she did not have 30 days in which to raise objections to the final report.
Facts:
Having sold debtor's sole asset and distributed proceeds therefrom, the chapter 7 trustee took steps to conclude and close the case. She filed a trustee's final report and a notice of trustee's final report and applications for compensation and deadline to object. Final fee applications were also filed. The bankruptcy court approved the final report and all of the requested fees. The chapter 7 trustee then filed her final account and distribution report, certifying that the chapter 7 estate had been fully administered. The bankruptcy court entered the final decree discharging the chapter 7 trustee and closing the chapter 7 case four days after the chapter 7 trustee filed her final account and distribution report.
Judge(s):
TAYLOR, DUNN, and KIRSCHER

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