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