Sui v. Marshack (In re Sui)

Summarized by Laura Coordes , Arizona State University, Sandra Day O'Connor College of Law
9 years 7 months ago

Citation:

Sui v. Marshack (In re Sui), Case No. CC-16-1053-KuFKi (9th Cir. BAP, Jul. 26, 2016) (unpublished)

Tag(s):

Ruling:

Bankruptcy court order authorizing chapter 7 trustee to offset contempt sanctions against non-debtor spouse's interest in proceeds from the sale of a residence vacated, and case remanded for further proceedings.

Procedural context:

Appeal from the bankruptcy court for the Central District of California, reviewed de novo.

Facts:

Bankruptcy court entered an order holding debtor and his wife in contempt of court after they violated the bankruptcy court's sale order by interfering with the chapter 7 trustee's efforts to sell their residence. The bankruptcy court ordered civil contempt sanctions against the couple and in favor of the trustee. The trustee sought to set off the sanctions from the non-debtor spouse's share of the proceeds from the property sale. After the bankruptcy court entered an order granting the trustee's motion, the debtor and his wife appealed. Separately, the debtor and his wife previously had appealed the bankruptcy court's sanctions order, which the BAP had vacated.

Judge(s):

Kurtz, Faris, Kirscher

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