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Joseph Hill v. Raquel King

Summarizing by J Newman

Jahn, Jr. v. Burke (In re Burke)

Debtors have standing for a motion compelling a trustee to abandon.

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Case Type:
Case Status:
16-6603, 2017 WL 2990162 (6th Circuit, Jul 14,2017) Published
Trustee seeking to sell residence cannot force Debtor to vacate premises while Trustee attempts to sell property merely by tendering to Debtor the value of Debtor's claimed exemption.
Procedural context:
Debtor filed for relief under Chapter 7. The Trustee wanted to sell the Debtor's residence and filed a Motion for Order Evicting Debtor from the premises and Debtor filed a counter-Motion to compel abandonment. Bankruptcy Court denied Trustee's Motion for Eviction and Granted Debtor's Motion to Compel Abandonment. Trustee appealed and the District Court Affirmed. Trustee then appealed to Sixth Circuit that also affirmed.
Debtor filed for relief under Chapter 7 and claimed the statutory homestead exemption of $7,500.00. The Chapter 7 Trustee sought to sell the property and claimed that the property would be more marketable if the Debtor vacated the premises. The Trustee tendered a check for $7,500 to the Debtor as payment of the exempt value of the property which the Debtor rejected. Debtor then filed a Motion to Compel Abandonment, claiming that the property was of inconsequential value. The Bankruptcy Court held that the DEbtor was not dispossesd from the property merely by the tender of the amount of the exemption, and that Debtor had both prudential and constitutional standing to request abandonment as Debtor, if successful, would retain ownership of property amounting to pecuniary interest sufficient to establish standing. The Court then held that based on conflicting appraisal testimony, the property had a value that, after deducting unavoidable liens and encumbrances and the value of Debtor's exemption was of inconsequential value, and granted the Debtor's Motion to Compel Abandonment.
Moore, Gilman and Cook

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