Seaver v. Klein-Swanson (In re Klein-Swanson)
- Citation:
- 8th. Cir BAP (Case No. 12-6054) - March 22, 2013
- Tag(s):
-
- Ruling:
- Reversal of the bankruptcy court's ruling in favor of the Chapter 7 trustee stating that (1) there was no transfer of funds under Section 549 or 550 to the debtor, (2) the trustee failed to show how the estate acquired an interest in funds received by debtor post-petition and (3) since the trustee is no longer a prevailing party, the award of costs under Rule 7054(b) is not appropriate.
- Procedural context:
- Appeal by the debtor of the bankruptcy court's ruling (1) revoking the debtor's discharge pursuant to 11 USC Section 727(d)(2), (2) avoiding the transfer under 11 USC Section 549 of bonus funds she received post-petition from her employer and entering judgment for recovery of those funds by the chapter 7 trustee and (3) granting a motion for costs filed by the trustee pursuant to FRBP 7054(b).
- Facts:
- On January 19, 2009, debtor, Michelle Ann Klein-Swanson and Scott Lawrence Swanson, filed a voluntary petition for relief under Chapter 7 of Title 11. In April 2009, an order was entered granting the debtor a Chapter 7 discharge. In March 2009, debtor, Michelle Ann Klein-Swanson, received a bonus from her employer of $16,072 for the 2008 year, however, there was no evidence that her employer had notified the debtor or made a decision to award such a bonus prior to the petition date. However, at the time of Section 341(a) meeting the debtor did not bring to the attention of the trustee that she was to receive a bonus. After the Section 341(a) meeting, the debtor engaged in communications with the trustee regarding receipt of her bonus. Thereafter, the trustee commenced an adversary proceeding against the debtor.
- Judge(s):
- Federman, Schermer and Nail.
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