(7th Cir. Apr. 5, 2016)
(B.A.P. 6th Cir. Nov. 28, 2017)
The Sixth Circuit B.A.P. affirms the bankruptcy court’s dismissal of the Chapter 12 bankruptcy case. The court finds that the bankruptcy court failed to give the debtor proper notice and opportunity to be heard prior to the dismissal. However, the violation of due process was harmless error. The delay in filing a confirmable plan and continuing loss to the estate warranted the dismissal. Opinion below.
Judge: Preston
Attorney for Appellant: Heather McKeever
(7th Cir. Mar. 22, 2016)
(7th Cir. Aug. 14, 2017)
The Seventh Circuit reverses the district court and holds that certain funds held by the debtor were held in trust for the appellant and other creditors in the same customer class. The funds therefore were not property of the estate that should be distributed pro rata to all creditors. Opinion below.
Judge: Hamilton
Attorneys for Appellant: Foley & Lardner LLP, Stephen Bedell, Robert Seth Bressler, Geoffrey S. Goodman, David B. Goroff, Thomas P. Krebs, William J. McKenna, Jr.
(7th Cir. Mar. 18, 2016)
(7th Cir. July 18, 2017)
The Seventh Circuit affirms the bankruptcy court’s order sustaining the trustee’s objection to the debtors’ $30,000 exemption in trust assets. The debtors argued the spendthrift provisions in the trust prevented the interest from becoming property of the estate. The court holds that the trust interest fully vested before the debtors filed bankruptcy. An exemption was inappropriate and the interest was property of the estate. Opinion below.
Judge: Sykes
Attorney for Debtors: Julia D. Mannix
Attorney for Trustee: Zane Zielinski
(7th Cir. Mar. 11, 2016)
(7th Cir. Mar. 13, 2017)
The Seventh Circuit affirms the district court’s dismissal of the appeal. The debtor failed to appeal the bankruptcy court’s order within the 14-day period set forth in Bankruptcy Rule 8002(a)(1). The court discusses authority holding that courts do not have equitable powers to contradict bankruptcy statutes and rules. Opinion below.
Judge: Easterbrook
Attorney for Debtor: Randy Joseph Netzer
Attorney for Appellee: Sean Michael Murphy
(7th Cir. Mar. 4, 2016)
(7th Cir. Jan. 30, 2017)