Tag: abandonment

Bankr. W.D.N.C.: In re Moe’s Rx Clinic, Inc.- Dismissal of Pharmaceutical Asset Case

Summary:

A pharmacy filed Ch. 7, with its primary asset being $40-50,000 in drug inventory. Upon the motion of the Trustee, the court found that the FDA and NC Pharmacy Board had specific procedures regarding the proper handling and disposal of prescription drugs that those entities were better able to follow than the Trustee. Accordingly, as there were no other assets, dismissal was proper to allow the Pharmacy Board to dispose of the drugs. (This case was subsequently appealed, but that was dismissed with the agreement of the debtor.)

Commentary:

It does not appear that either abandonment of these drugs by the bankruptcy estate pursuant to 11 U.S.C.… Read More

Tagged with: , , ,

Bankr. W.D.N.C.: In re Duvall- Impact of Abandonment on Debtor is Not Relevant

Summary:

The Trustee sought to abandon LLCs of inconsequential value to avoid tax liabilities of more than $1 million due to recaptured pass through losses. Abandonment of these assets would shift the tax liability to the debtor, who contended that this would improperly burden his fresh start. The bankruptcy court rejected this as the “[i]mpact on the debtor is not … one of the factors to be considered in authorizing abandonment, which suggests that impact on the debtor is not a necessary
consideration.” In re Johnston, 49 F.3d 538, 541 (9th Cir. 1995)

For a copy of the opinion, please see:

Duvall- Impact of Abandonment on Debtor is Not Relevant Read More

Tagged with:

Bankr. E.D.N.C.: In re Holzapfel- Abandonment of Assets of the Estate

Summary:

The Debtor filed Chapter 7 in 1998 and received a discharge shortly thereafter. In 2009, the Debtor commenced litigation in Florida regarding 24,000 shares of SafeCard, Inc. stock, purchased for approximately $120,000.00 in November 1977, upon which the Debtor had never received distributions or dividends. The Debtor had not listed this asset in his petition and accordingly, the Chapter 7 Trustee reopened the case in September 2012, but took no subsequent steps to administer the asset. In April 2013, the Debtor sought to have the lawsuit abandoned pursuant to 11 U.S.C. § 554, asserting that the prosecution of these claims by the trustee would not be economically feasible nor in the best interest of the estate.… Read More

Tagged with:

Bankr. E.D.N.C.: In re Henries- Whether Abandonment of Property by Chapter 13 Trustee is Binding on later Chapter 7 Trustee

Summary:

The Debtor owned real property with her husband as tenants by the entireties, but then separated.  Pursuant to a Separation Agreement, the Debtor signed a Quit Claim Deed granting the property to her husband in 2005 and the parties divorced in 2006.  She later filed Chapter 13 on December 3, 2008, but, apparently unbeknownst to the Trustee,  the Quit Claim Deed was not recorded until January 9, 2009, one day after the §341 Meeting of Creditors.   The Debtor’s confirmed plan abandoned  her interest in the property to the secured creditors.  In 2010, she  converted to Chapter 7 and the Trustee initiated an adversary proceeding to avoid the transfer under 11 U.S.C.… Read More

Tagged with: , ,
Top