- Case No. 12-16371 (11th Cir. July 15, 2013) [Not for Publication]
- Chapter 7 Trustee's business judgment to close estate as a "no asset" and not sell or settle Michigan Judgment was within his business judgment under Section 544(a) and District Court deference to that decision was affirmed.
- Procedural context:
- Creditor objected to Trustee's Chapter 7 Report of No DIstribution and abandonment of a Michigan judgment. After a hearing, the Bankruptcy Court overruled creditor's objection. Appeal was made to District Court. District Court found Trustes' decision was made in good faith, upon a reasonable basis and within the scope of his authority. Circuit Court agreed and afifrmed.
- Debtor, Jennings, filed a Chapter 7. Schedule B showed a Michigan Judgment in the sum of $363,698.55 as an asset. Unsecured creditor offered the Trustee $10,000 for the Michigan Judgment in settlement. A third party also offered to purchase the Michigan judgment from the Trustee for $10,000. The judgment itself was actually a $125,000 judgment for the Debtor against United, a $238,698.55 judgment for the Debtor and his co-defendants against United for legal fees and costs, and a judgment in favor of United for $255,367.29. The Trustee refused to settle or sell. Instead Trustee filed a Report of No DIstribution. United objected to the Report and effective abandonment of the Michigan judgment as a windfall to the Debtor. The Trustee testified that the estate had no interest in the Michigan Judgment. The Trustee also argued that he deemed the $10,000 offered to him to be an inconsequential value. The Court noted that the approximate $540,000 in claims meant that the creditors would receive less than two cents on the dollar, even before considering costs of administration.
- Hull, Jordan and Hill
Thelma McCoy v. USA
Summarizing by Craig Geno
U.S. Unemployment Rate Likely to Approach 20 Percent as COVID Pandemic Hits Jobs Market Again in May
3089 in the system
2 Being Processed