Schlehuber v. Fremont National Bank & Trust Co. (In re Schlehuber)

Citation:
In Re Schlehuber, 8th Cir. Court of Appeals, No. 13-2070 [March 19, 2014][Unpublished]
Tag(s):
Ruling:
In an unpublished per curiam opinion, the 8th Circuit Court of Appeals affirmed the ruling of the Bankruptcy Appellate Panel and the Bankruptcy Court, which held that a creditor has the standing and the right pursuant to bankruptcy code, to petition the court for a conversion of the bankruptcy case from a Chapter 7 to a Chapter 11. The ruling also addressed the challenge by the debtor (Schlehuber) that the bankruptcy court abused its discretion in granting the motion to convert the case from Chapter 7 to Chapter 11. The court of appeals could find no basis to conclude that the bankruptcy court applied an improper legal standard or abused its discretion in granting the motion to convert. See In re Wolk, 686 F.3d 938, 940 (8th Cir. 2012)
Procedural context:
The Bankruptcy Court granted the motion to convert the case from Chapter 7 to Chapter 11. Debtor (Schlehuber) appealed the bankruptcy court decision to the Bankruptcy Appellate Panel (BAP). The Bankruptcy Appellate Panel (BAP) affirmed the bankruptcy court ruling. Debtor (Schlehuber) now appeals to this court, arguing that the bankruptcy court applied an improper legal standard, and abused its discretion, in granting the motion to convert. He also renews his constitutional challenge to certain bankruptcy statutes.
Facts:
James C. Schlehuber, also known as Jim Schlehuber, Formerly doing business as J.R.G., L.L.C., Formerly doing business as The Radar & Riley Limited Partnership, Formerly doing business as March Plan Investments, L.L.C., Formerly doing business as Rockford Omaha, L.L.C., Formerly doing business as January Real Group, L.L.C. filed a voluntary Chapter 7 bankruptcy petition. After the Chapter 7 filing, one of [Schlehuber's] creditors moved under 11 U.S.C. § 706(b) to convert the petition to one under Chapter 11. After a hearing, the bankruptcy court granted the motion to convert the case from a chapter 7 case to a chapter 11 case.
Judge(s):
WOLLMAN, MURPHY, and SMITH,

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