- Case Type:
- Case Status:
- BAP No. UT-15-061 (10th Circuit, Jan 03,2017) Published
Although the chapter 7 trustee's pleading was inartfully crafted, the relief requested for turnover and production of documents and information from the debtor should have been granted. Section 542 requires turnover if the property was in the possession of the debtor at any point during the case, is applicable to "recorded information," and the creates a duty to cooperate with the trustee which allows the trustee to obtain "other information." The chapter 7 trustee's request for an extension of time to objection to discharge was moot due to a lack of stay pendng appeal.
- Procedural context:
On appeal from an order of the United States Bankruptcy Court for the District of Utah denying the chapter 7 trustee's motion for turnover of documents and information and to extend time to file an objection to discharge.
At the 341 meeting of creditors, the chapter 7 trustee requested certain additional documents and information from the debtor. That request was followed by an email to counsel the next day. Subsequently, the debtor did not comply with the informal requests and the trustee filed a motion for turnover and to extend the time to object to the debtor's discharge. The motion was not opposed by the debtor; however, the court denied the the requests in a memorandum decision noting that the trustee's motion lacked sufficient detail and that the requested information and explanations were not propertly subject to a turnover proceeding. Further, the court stated that the trustee failed to demonstrate that the debtor had the requisite "possession, custody, or control". Finally, the court was unclear from the motion whether the trustee had previously requested all the information sougth in the motion due to the facts pled in the motion.
- Nugent, Somers, and Hall
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